USAGOLD Gold Discussion Forum Archive

Electronic reproduction sourced from
melda laureclick click click, whirrrrrrr.... SNAP!... empty chamber.#1462838/1/06; 00:15:14

Sir Black Blade, it is true, your oil analysis has been excellent and I regret that I did not devote more capital to that game. I apologize that my tone was too shrill or seemed too off topic. There are certain issues pertaining to energy that I believe are worth answering, but they can wait. At the least, I suspect we both agree that the "solutions" being publicly discussed provide no substitute for an 80 MBPD transport fuel habit: (ethanol, biodiesel, etc).

Sir Phil288, the Bakhtiari testimony touched on everything that is so ignored regarding Peak oil, it was well worth reading the whole 40 odd pages (link) and illustrated many of the future gold-oil transformations that FOA spoke of. I was floored by his candor, especially regarding the "non-economic" projects like the Airbus, the rail lines or the natural gas pipelines that will never be built because events will overtake the plans. To date I can not think of anyone who has had the audacity to say such things. Especially incisive were his comments regarding the energy costs of producing energy- it highlights the real absurdity regarding mining shares versus physical metal whose energy costs are already "paid up". Just imagine producing gold by hand from 0.5-2gm/ton ores.

Sir Invisible Hand, your comments I concur with, but I did not intend to suggest that Europe was superior to Islamic learning, nor to say who is the victim nor who the transgressor. I merely point out that once the Dollar is done, and the US demoted, then Europe will have to manage on its own. And given that, perhaps the dollar and the US are still useful for "dirty work" for a while longer. I too have my hopes that the EU becomes a showcase of Liberty and not Imperialism by Committee.

We sit on the edge of ruin, but I rather than dwell on apocalyptic drivel, let me but note that Bakhtiari did not provide any solutions, merely suggestions to ease the pain. I have a pallative of another color: clink clink clink...

GoldendomeStagflation: It's not just a thought.#1462848/1/06; 00:16:13

Yes, Sir Sundeck: When we have reported GDP in the past quarter up by 2.5% (aprox.) and (official unreliable) CPI inflation data for the quarter reported at 4+ %, we think you are correct in attributing any apparent economic growth, to increasing costs.

That old vampire sucks the life from the economy...Rising costs, declining business activity, shrinking margins, falling profits. The Stagflation vampire, once Volkerized, is now awakened in the dark piles of fiat heaped upon it.

No one is bragging up the business: Those numbers only exist somewhere else, in the monopoly of Government, economies of scale, or accounting jargon. Here in the world, the sacrificed half case of beer only buys one, 50 miles of gasoline rather than the former 200 miles. Multiply it many times, add pop, groceries--do the math; we need to go the distance, whatever the cost in other discretionary sales. The beer truck now costs that company more to deliver less margin. Same on down the line. Soon, something gives way: we don't need the bodies or a truck, maybe we don't need the stops or frequencies. Maybe, the declining business, margins, and no profit, kills the companies.

Think the gasoline retailers are happy? Think they're cutting the fat hog? Think again.
Gasoline on the card, costs the retailer say, 4 cents on the dollar--fees. At a dollar a gallon that was 4 cents. Gasoline went to $2.00, now the card costs were 8 cents a gallon. Gasoline goes to $3.00 a gallon, now the bank charges are 12 cents a gallon. The retailer calls to order more gas. Sorry...the reply. "You haven't paid the last load." The banks with their cards have been cutting the fat hog! Their fees off the top drain more money than the retailer has in margin to stay competitive. Doors closed...Out of Business!

melda laureBarrick bashing, Chile, and American TV.#1462858/1/06; 01:11:15

There are always such challenges in mining, Sir Druid. But why stick to gold. I'm certain that silver, copper, and lead mining are equally messy, and have the same sustainability issues. Are we certain that this is not a subtle form of gold bashing? Or that someone in Chile wants the orebody for a domestic outfit? (I am not questioning the claims of the locals, but rather, of the motives of the news media in pushing this particular story all the way to your local TV set.)

Barrick certainly deserves some bashing, too bad it isn't their management who is being bashed.

The moral compass is tricky. Gold is recycleable though.

The Invisible HandPope reference#1462868/1/06; 02:59:18


You object to my reference in msg#: 146279 to the Pope.
But you do not object to my reference in msg#: 146280 to a senator of the US of A.
Why the double standards?
Who has more moral authority?

I think there was a discussion this week-end, discussion which was deleted by our hosts before I could read it, about republocrats and demopublicans.

If you accept that there is such a thing as morality, the FIRST question is, according to Ayn Rand, Does man need values at all -- and WHY?
The first question is NOT: WHAT particular code of values should man accept?
Rand goes on to define morality as an objective, metaphysical necessity of man's survival.
Man's survival.
Not the survival of the US of A or of its dollar.

NEXT: WHAT particular code of values should man accept?
Man must choose his actions, values and goals by the standard of that which is proper to man, says Rand.
The [Pope] also reiterated his request to "open humanitarian corridors and to respect the LIFE OF EACH AND EVERY PERSON, which is a gift from God."

Right, Rand does not accept the existence of God.
But show me besides the Pope, one public person of ëimportance' who defends man and his life?

In his 1993 Aquinas Lecture, "Person and Being", delivered at Marquette University, Father Clarke, S.J.argues that:

A HUMAN PERSON is a personal being possessing its intellectual nature
as joined in a natural unity in a material body

Aristotle - rational animal
Thomas Aquinas - embodied spirit

(W. Norris Clarke, S.J., "Person and Being", reprinted in Rainier R.A. Ibana, (ed.), "Person, Being and Ecology", Ateneo de Manila University Press, 1996, p. 23)

To compensate for my reference to a Jesuit, here's Murray N. Rothbard "For a New Liberty -- The Liberterian Manifesto", New York: Libertarian Review Foundation, 1978, rev. ed., p. 23:

The libertarian creed rests upon one central axiom: that no man or group of men may aggress against the person or property of anyone else> This may be called the "nonaggression axiom".
"Aggression" is defined as the initiation of the use or threat of physical violence against the PERSON or property of anyone.

Rothbard agrees with the Jesuit. Inch'Allah!

adminEleven Guidelines for the Respectful Poster/Fair Warning#1462878/1/06; 04:05:50

1. Respect yourself and your better judgment. If you do not take the responsibility for keeping this Forum from spinning into chaos, no one will.

2. Respect your fellow poster. If you do not, he/she has no choice but to defend his or her online persona. That leads to psychological warfare which neither party can win. Learn to back away to carry on another day.

3. Respect this table. Sturdy and oaken as it is, it is fragile as well. If you damage it, you damage yourself.

4. Respect those who provide this forum. If USAGOLD / CPM is diminished by the existence of this Forum, it has no reason to provide it.

5. Respect those who read this Forum as lurkers. Remember it is not USAGOLD / Centennial Precious Metals that provides sustenance for this table but its clientele.

6. Respect the rules. Remember, without law and mutual respect -- the rules -- we are rabble.

7. Respect the purpose of this forum. It is not to promote your enterprise; a favorite enterprise (including our competitors); investments in stocks, bonds, and derivatives; a political party or group; religious group; or your own career. Remember you are a guest here.

8. Respect the civility and integrity of the Table. I should not have to police this site. Take personal responsibility, and a pleasant place to visit will be your reward.

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10. Respect the continuity of the Internet. Once it's posted here. It's posted here for the long haul.

11. Respect the spirit of this message born of considerable experience. It is not addressed to any one individual or any group. It is directed toward and applies to all. Please appreciate when USAGOLD issues a posting code, it is a matter of trust.

Sincerely, Michael J. Kosares,
USAGOLD / Centennial Precious Metals, Inc.

SundeckGolden wisdom posted on the net...#1462888/1/06; 04:25:59

Ref admin msg#: 146287

Mmmm...that is not badly constructed...someone put some thought into those eleven guidelines...based upon a little experience, as well...

...and good instruction to carry elsewhere, in one's wanderings and dealings, as well.

Thank you, Sir MK.


SundeckDid the treasury manipulate the gold price?#1462898/1/06; 05:00:42

See link for some discussion on this interesting question...discusses the recent drop in price by 22% from over $700 per ounce...


SundeckNow I've heard the lot...#1462908/1/06; 05:11:57


Million Dollar Deep Sea Fishing Lure, No Big Fish Tale!

(July 31, '06, 11:21 Joseph V. Kuca, New York)

MacDaddy's Fishing Lures, manufacturers of what you might say is 'not your daddy's fishing tackle,' has just unveiled its newest creation -- a one million dollar, limited edition, deep sea fishing lure.

The latest in MacDaddy's daring line of fishing tackle, the Million Dollar Lure was designed by company founder, fishing enthusiast, and 28-year veteran jewelry designer Mac McBurney. The limited edition piece is manufactured by Uneek Fine Jewelry Collection and is restricted to a numbered production quantity of 25 pieces worldwide.

Sundeck: Come on all you game fisher-folk! You haven't lived until you've cast one of these over the stern and started winding...somehow I don't think the fish would notice all that much...


SundeckFuel retail margins#1462918/1/06; 05:35:28

@Goldendome #146284

Dang it, Sir Goldendome, now you have made me feel guilty everytime I call in to the gas station to fill up. I nearly always use credit card (pay off monthly, get bonus points for travel etc, plus one month interest-free on funds). In future I will always be thinking of the owner's declining margins.

Actually, there are moves afoot in Australia for petrol station owners to pass on bank/credit charges, from credit card purchases, to the motorist...I'm afraid the free lunch is about to come to an end...


GoldiloxCore inflation rising at 11-year high in June#1462928/1/06; 09:06:04


WASHINGTON (MarketWatch) -- U.S. core consumer inflation matched an 11-year high in June, keeping the pressure on the Federal Reserve to fight inflation, the Commerce Department reported Tuesday.

The core personal consumption expenditure price index, excluding food and energy, increased 0.2% for the third straight month in June, and has risen 2.4% in the past 12 months, matching the largest year-over-year gain since April 1995's 2.5% increase.

The core rate had also risen by 2.4% on a year-over-year basis in September 2002 and in May 1995.

Consumer prices including food and energy also rose 0.2% in June, and are up 3.5% in the past year.

Meanwhile, personal incomes rose 0.6% in June, outpacing the 0.4% increase in consumer spending. Read the full government report.

The personal savings rate rose to negative 1.5% from negative 1.6%, the 15th consecutive month of negative savings. Consumers can have negative savings by spending previous savings, or by borrowing or selling assets to support their consumption.

After adjusting for inflation, real consumer spending rose 0.2% in June, the fourth straight month of tepid spending. Factoring out taxes and inflation, real take-home pay rose 0.4%, the biggest increase in disposable income since December.

Real per capita disposable incomes rose 0.3%.

The gains in nominal monthly incomes, spending and inflation were exactly as expected by Wall Street economists surveyed by MarketWatch. See Economic Calendar.

The inflation figures continue to trouble Fed policymakers, who have said core prices are rising faster than they'd like. The Fed has raised interest rates 17 times in the past two years. Much of the impact of those rate hikes has yet to be felt, Fed officials have said.

The evident slowdown in economic growth, largely due to a weaker housing market and high energy prices, should also remove inflationary pressures over time, officials have said.
Markets are expecting the Fed to stand pat in August to reassess monetary policy. Two Fed officials said Monday that the decision about whether to raise rates again would be a close call, and would depend in part on incoming data on growth and inflation. See full story.

Looking to July

The July jobs report is likely to have the greatest influence on Fed thinking. See full story.

Core inflation will likely accelerate to 2.5% in July, said Stephen Stanley, chief economist for RBS Greenwich Capital.

"This is why we think that the Fed has to tighten again next week. Pure and simple. Core inflation is too high and still accelerating," Stanley said.

"It is very risky for the Fed to stop hiking when inflation is still accelerating."
The June data on incomes, spending and inflation provided monthly details to the quarterly figures released last Friday in the report on gross domestic product. That report showed core consumer inflation had risen 2.3% from the second quarter of 2005 to the second quarter of 2006. See full story.

Incomes got a boost in June from higher hourly wages. Nominal compensation of employees increased 0.6% in June, with wages also up 0.6%.

Income from assets rose 1.5% in June, the third straight gain over 1%.

Proprietors' income increased 0.1%.

Nominal disposable per capita income rose 0.5% to $31,705.

"By now, it is evident that consumer spending is showing the strains of elevated gasoline prices and a slowing housing market, while for debt-laden consumers higher interest rates have increased the burden of monthly debt service payments," said Stu Hoffman, chief economist for PNC. "With little relief from any of these factors likely in the near term, consumers are becoming increasingly reliant on wage growth to support spending."

Real spending on durable goods rose 0.5%, the first gain in three months.

Real spending on nondurable goods increased 0.3% and real spending on services increased 0.1%, the weakest gain since January.

"With after-tax real incomes up only 0.4% year over year, and the housing correction making equity extraction rather less attractive, spending growth is likely to slow further," said Ian Shepherdson, chief U.S. economist for High Frequency Economics.


It's getting harder and harder to hide the inflafla in "hedonic adjustments". While personal savings improved, it was not by much. Americans are still "eating their homes" at a 1.5% per month rate.

OZEnjoy it please!#1462938/1/06; 10:02:47
OZSorry here is the Link#1462948/1/06; 10:05:25

Good Satire and put speakers on
GoldiloxYukos declared bankrupt by court#1462958/1/06; 10:07:34


roubled Russian oil firm Yukos has been declared bankrupt by a court in Moscow, clearing the way for the firm to be liquidated.
The decision ends a three-year court battle for survival, after Yukos was hit with a huge back tax bill.

The saga has seen former Yukos chief Mikhail Khodorkovsky jailed and parts of the oil firm's empire sold off.

"It's the death sentence for the company," Yukos lawyer Drew Holliner said after the ruling.

Arbitration Court judge Pavel Markov's decision came as "little surprise", Mr Holliner said, given that Russian tax authorities and state-owned oil firm Rosneft are the group's biggest creditors.


Not much of a surpirse, as Putin continues to "divest" the foreign beholden oligarchs and Wall St. interests of Russian resources.

CamelTha'r she blows#1462968/1/06; 13:17:30

Oil up, gold up :dollar down, DJIA down. Meanwhile Tony (the poddle as he is called in the English press) cuts a deal on global warming and stem cells with Arnold, and the EU passes a cease fire proposal.
USAGOLD Daily Market ReportPage Update!#1462978/1/06; 17:05:34">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

Gold exits doldrums, begins August up $12

August 1 (from DowJones) -- After trading quietly for the early part of the session Tuesday, Comex gold futures rushed to a two-week high as the dollar slipped lower and crude oil breached the $75-a-barrel mark at the New York Mercantile Exchange. Most-active December gold settled $12 higher at $658.80.

During the session the contract broke to a high of $659.30 an ounce after traders returned to the floor at Nymex following a 30-minute fire drill. After trading resumed, Jim Quinn, a commodity floor analyst at AG Edwards, said the dollar had lost ground and prompted a strong round of buying in gold.

He added that the growing tension between Israel and Hezbollah added to the upside. "There was a rejection of a proposal (by the U.K. and Germany calling for a cease fire in the Middle East) and more (Israeli) troops have moved into Lebanon," said Quinn.

Other traders said it is difficult to predict near-term moves in gold, given the thin market conditions. However, many believe that any price dip is a buying opportunity as the next couple of months should prove good for gold as it should manage to register new highs for the year.

(MarketWatch) -- On the data front, the Commerce Department said core U.S. consumer inflation matched an 11-year high in June -- the core personal consumption expenditure price index, adjusted to exclude food and energy, increased 0.2% for the third straight month in June, and it's risen 2.4% in the past 12 months, matching the largest year-over-year gain since April 1995. Consumer prices including food and energy also rose 0.2% in June, and are up 3.5% in the past year.

---(see url for full news, 24-hr newswire)---

TownCrierHey presto! A Peso's as good as a Dirham#1462988/1/06; 17:17:05

Dubai: A number of residents have discovered that a Philippine peso is as good as a dirham whether it is to buy a soft drink or a parking ticket.

One of the reasons attributed for pesos working in vending machines is that their weight and size is more or less the same as a dirham.

...a dirham is about 13 pesos.

A few people are beating the system using a simple trick. When they are thirsty or need a parking ticket they slip a peso coin into a vending machine. The machine obliges because the size of a peso coin is the same as a one dirham coin. That works out as 13 sodas for the equivalent of one dirham.

^---(from url)---^

A useful article to foster some additional personal ponderings upon the nature of money and currency.


TownCrierPaulson backs strong dollar#1462998/1/06; 17:21:01

NEW YORK: Newly minted US Treasury Secretary Henry Paulson said yesterday in his first public comments since assuming office last month that a "strong dollar" is in the US' best interests.

Paulson picked up the baton right where his predecessor left off in stating his adherence to a strong dollar in a speech at New York's Columbia University.

"I believe that a strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying economic fundamentals," Paulson said.

Paulson also echoed former treasury secretary John Snow and senior US lawmakers in criticising the Chinese government's currency regime... "The Chinese need to show more flexibility with their currency," Paulson said.

^---(from url)---^

"Meet the new boss. Same as the old boss."
"We won't get fooled again!"


GOLD FINGERIt's all GOOD as...g o l d#1463008/1/06; 18:03:07

Dear Gold Bugs,

The world is a dangerous place. We live in perilous times where freedoms are being challenged daily. All one has to do is look out side your own door to see the troubles and dangers. A few days ago, right in my neighborhood a woman was shot to death by what the authorities claim is part of the serial killings of an individual or individuals.

Negative and evil doing is every where. The news media and local government called a town meeting at a school that is next to me. Answers, is what everyone demanded. Why? and How could this happen in our town?

Like all the many fine articles and comments on our ever changing country, political and investment arena point out, we are defiantly in for some hard times.

I do think people's personal economic situation is worsening. people are doing things they normally wouldn't do. Who are they? People like us all and from all different kinds of backgrounds.

I personally have noting against anyone. Not the President of the United states, not the Pope or even our other Government officials. What I am against is how things have some how become very messy. Who do you blame? I blame the people for not rising up and really weighing in on the totality of being a Citizen of a free democratic society.

Weather it's in this country or any other country I do think we all have a responsibility to follow the simple GOLDEN RULES. I think respect is a good one to start with and was pointed out by admin (8/1/06; 04:05:50MT - msg#: 146287) Michael J. Kosares.

I wish to thank you Mr. Kosares, for providing a great forum where individuals can express their knowledge and information on day to day living in this world. I have always been a fond admirer of Precious Metals and it has a rich history in my family's heritage. I have truly enjoyed and greatly appreciated many of the comments that you all so kindly take the time to add here.

I do apologize if I have acted out of line or offended anyone. My only intension when I post something was to seek added wisdom and advise or gain your valued insight and opinions. I do believe we all here for the main reason and that is to see how we can learn more about one of the most valued metals on earth. GOLD!

I wish you all a great harvest and a most prosperous life.


Mr. GoldfingerThe USD#1463018/1/06; 18:44:49

Into the pits of zool goes the hopeless dollar. The financially and morally bankrupt US can no longer rely on the the dollar to retain it's value because of reserve currency status. The inept US leadership should be looking for friends in the middle east, instead they are making creating new enemies everyday. If the 800 Lebanese dead were caused by a natural disaster the US would be sending tons of aid, but because it is caused by Israel they are sending more bombs to cause more deaths. No country that finds itself on the wrong side of a conflict can expect to prosper. Buy gold, gold stocks, uranium stocks, diamond stocks etc.
The Invisible HandSeparate energy and state#1463028/1/06; 18:53:25

The "power crisis" is a fake
Strike the Root
by Don Hull
There is no "shortage" of electricity anymore than there is a shortage of ice cream cones or ice cubes. The "shortage" we have is a shortage of FREEDOM.
We are overdue for a complete separation of electricity and state.


Compare: yesterday's discussion between Black Blade and me in msgs#: 146248, 146249, 146250 and 146252.

SundeckPaulson#1463038/1/06; 19:08:11

Ref TC's #146299

Even if he believes otherwise, of course Paulson HAS to take up from where Snow left off... with all the rhetoric about "strong dollar" being in the "best interests of the US" and "free markets" and moaning at China...all this to ensure a smooth transition and no dramas in the markets and amongst the financial fraternity...

Imagine if he were to do otherwise: "We want the dollar weaker." and "A weak dollar will help us reduce our trade balance because the American people will not be able to afford so many fancy imports." and "We recognise China is moving as fast as is wise...and we should never have implemented the crazy 'strong dollar' policy in the first place." Can you imagine the reaction?

A large hook would appear from off-stage, snaffle him by the neck and drag him to an unseen and very unpleasant fate...

No...what we see is Paulsen "impedance matching" the junction between Snow and avoid unpleasant waves... Watch what happens down the track...


MKTC: A comment on the Paulson comment#1463048/1/06; 19:16:33

Paulson: "I believe that a strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying economic fundamentals."

MK comment: This is a highly intelligent individual. Does he not understand that the first half of the sentence is cancelled by the second? I do not wish to make trouble for this man but any gold owner reading this propaganda should realize that this is political posturing DEVOID of any basis in financial reality. This is what happens when financial man meets political man.

TC: Thanks for you tireless efforts in digging this sort of thing up. It's easy for posters like me to dissect this sort of thing and make a comment. I'm certainly glad I am not resonsible for POLICY in this milieu.

GoldendomeMr. Goldfinger#1463068/1/06; 19:31:13

Do not be surprised when your prior post disappears.
Violation of the table!

Mr. GoldfingerGoldendome (8/1/06; 19:31:13MT - msg#: 146306)#1463078/1/06; 19:37:27

I being new here do not understand. Please elaborate.
GoldendomeFollow-up for Mr. Goldfinger#1463088/1/06; 19:44:13

It is improper to promote paper here. It is improper and in poor taste. Our host you may observe, asks in a gentlemanly way, that we not tout competative products (paper) here.
osa104cSTRONG weak US$#1463098/1/06; 21:15:46

If the trade deficit declines, doesn't that mean we have more paper waste here....thus Higher interest rates, inflation????

WATER FALLS we like?......slow cascades???

Clink!Aaron Russo's Movie#1463108/1/06; 21:59:05

Of the only ten or so theaters across the country showing "America : from Freedom to Fascism", two of them are in the Tampa Bay area - one less than two miles from home, the other even closer to my work. Taking this as a strong hint that Destiny obviously wanted me to see it, I went this evening.

After what seemed to be a prudent move by paying cash for the ticket (somewhat spoilt by the fact that the girl behind the glass waved and said 'Hi!' to my daughter - so much for total anonymity), we squeezed into two of the last two hundred or so remaining seats. I'm not sure if this was just because it was early evening on a Tuesday or not - there were only twenty in the audience, but the rest of the complex was pretty deserted too.

The actual movie was pretty good stuff, including interviews with such familiar people as G. Edward Griffin, Ron Paul and Catherine Austin Fitts. The first half is an interesting investigation as to the legality of Income Tax (it would appear not, but I am moved to do more DD before failing to file next April !) which segs into the destruction of the dollar by the Fed and then goes on to talk about the removal of our personal freedoms by the use of the national ID card, RFID tags in paper money, RFID tags in US (!) and ends with a general call to civil disobedience to get rid of the Fed. Overall, nothing that would particularly surprise a goldbug, but it will be interesting to see if this limited release is sufficiently successful to catch a wider public (eg anyone in the western half of the country - Dallas is as far as it goes at the moment). Russo himself has announced his candidacy for the Presidency, but I'm sure that the mainstream media will do an effective job of ignoring him. It used to be that a candidate might write a book to express his views before the campaign, but with Al Gore producing a documentary too, I'm wondering if this might not be the start of a trend. Mind you, if that were the case, we can all imagine what would happen to the strictly factual content !


Chris PowellIt's a wonderful life: John Embry is interviewed on ROB-TV#1463118/1/06; 22:28:17

Dear Friend of GATA and Gold:

It's the wrong season -- too warm -- for television to be broadcasting "It's A Wonderful Life," but Report on Business Television in Canada today broadcast the summer equivalent: a "Market Call" interview by Jim O'Connell of Sprott Asset Management's chief investment strategist, John Embry.

Embry discussed manipulation of the gold market, predicted that the next move up in gold will be a big one, and reviewed the prospects for a large number of mining companies, including three GATA supporters -- Agnico-Eagle, ECU Silver, and North Atlantic Resources.

You can watch the Embry interview for a week at the ROB-TV archive on the Internet here:

It's in the Tuesday column at 12:30 p.m.

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

contrarianStock "Tips"#1463128/1/06; 23:46:49

Not interested in hearing stock tips (often pump and dump schemes). Look at Thom Calandra and his "Calandra Report", a report which I actually, briefly, for five seconds, considered subscribing to. Fortunately I didn't, as it was stock fraud through and through, and he got his slap on the wrist from the SEC. Stock purchases should be based on careful research, not tips.
miner49erMK @ Paulson comments...#1463138/2/06; 01:00:37

MK @ Paulson comments...

Hey Mike, long time to talk. Why would an intelligent individual like Paulson speak in terms of the same contradictions as his predecessors? Do you remember Krugman's "open letter" in the NYT a while back addressing Paulson on taking this job? Doesn't really have the answer to your question outright, but indirectly I think Paul K. has hit the nail on the head:

(For anyone wanting to read the whole thing, it's a subscription service, but the title was "Secretary, Protect Yourself" from June 2nd.)


So you decided to take the job, after all. It's no surprise that they wanted you. As the joke that's making the rounds puts it, they're so desperate they're scraping the top of the barrel. But most of us are surprised that you accepted.

No doubt you received assurances that like Robert Rubin, but unlike your predecessors in this administration, you'll get to be a real Treasury secretary. And you probably believe that those assurances can be trusted, if only because the Bush people currently need you a lot more than you need them.

But Paul O'Neill, who received tremendous acclaim from the news media when he was appointed Treasury secretary, must have believed the same thing.

Nobody was more loyal than Larry Lindsey, President Bush's first top economist. Yet when Mr. Lindsey blurted out an inconvenient truth [ . . . ] he was fired.

So what are you being asked to do that will undermine your credibility? What will they ask you to lie about?

Right now, you're being flattered. You have a natural urge to be a team player. But if you play the game your new bosses want you to play, your credibility with the public will evaporate in no time at all. And when you're no longer useful to your new friends, you'll be tossed aside.


Knallgold$#1463148/2/06; 02:55:46

Paulson: "I believe that a strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying economic fundamentals."

I don't see necessarily a contradiction in the above statement-if you take the word "strong" not too literal.

Topazgo my pretties!#1463158/2/06; 04:07:32

12.5K tricks turned so far for Aug, can they find the Oz's?, 12mo Lease rates on the up, lookin' good for a run to 4 digits ...even 'ol Buck can't hold her!
Let's go out on a limb ...5 digits!

SundeckSo much for curing oil addiction...#1463168/2/06; 04:16:41

This from the NYT emphasises the continuation of the grand oil delusion...


The gulf might well yield enough natural gas to make a difference in price. But there is not enough oil there or anywhere else in the United States to make a difference in the price of a barrel of oil or a gallon of gasoline at the pump. Why the Senate persists in deluding itself on this remains one of the mysteries of the age.

Reminds me of a Donald Duck comic I read once...but that is another story...


Goldiloxcontradiction#1463178/2/06; 09:09:23

@ Knallgold,

To me, the contradiction is attempting to manipulate a "strong" dollar, but suggesting that "free markets" are the judge of whether it is strong or not.

If they're truly "free markets", what's the point of the promotion?

Surely, it's not just advertisement, or is it?

melda laure"Dollars.. you know you want more of them!" (bleah!)#1463188/2/06; 10:11:28

an advertisement would include the promo: "our taxes are low, our credit issue is stable, our budgets balanced, and our trade balanced or in slight surplus..."

As He cant say that, maybe he ought to hire an ad agency and come up with a catchy jingle.

The HoopleGoldilox#1463198/2/06; 11:04:28

You are correct pointing out the contradiction of promoting or manipulating a "strong dollar." In fact there should never be an adjective of any kind in front of the word dollar. Honest money needs no description and therein lies the fraud. By constantly invoking "strong dollar belief" he obfuscates the quicksand that all paper wealth is built upon. What Paulson really wants is for the dollar to devalue in an orderly fashion so as to not look bad against all the other fraudulent currencies. The race to worthlessness must be a silent affair.

To clear the debt this nation owes requires one of two things: Approximately a 95% tax on income, or a 95% devaluation of the dollar. My bet is on the latter.

TownCrier(Paulson) Interpretations...#1463208/2/06; 11:24:11

One way to resolve the meaning of "strong dollar" such that policy-preference statements of "strong dollar" can coexist with those of "currency values should be determined in open and competitive markets" is to adopt the viewpoint that a "strong dollar" is not meant to directly translate into a "strong exchange rate".

If we were to understand the nuances of the game, we might more directly comprehend that it is merely political code by which the Treasury Secretary is effectively indicating a continuing preference that the U.S. dollar be retained in international usage as the primary international reserve asset.

The translation of the words give the following:

STRONG currency = RESERVE currency

To be sure, however, when other international parties obide by the above equation, the net result is that, due to this reserve usage, the dollar receives an inordinate amount of support in the currency markets which is not similarly enjoyed by its currency peers. Thus, at the end of the day, support for a "strong (i.e., reserve) dollar" does effectively translate into mechanisms that support a specially strong exchange rate -- albeit in means that it is accomplished more fundamentally through extra demand within "open and competative markets" (consistent with the stated preference) rather than through devious "intervention".

The fly in the ointment, however, is that if the U.S. (and the world) were to TRULY (fully and fairly) embrace the preferential notion of "open and competitive markets" with regard to exchange rates, then the dollar would not continue to be given a free ride as the designated reserve asset. The position of reserve asset would have to be opened up for competition, too.

And this, by and large, is what is happening in the form of OTHER countries slowly-but-surely liberalizing their gold markets and more especially in their central banks adopting mark-to-market accounting practices upon their gold reserves. To impatient gold advocates, however, the full process of transition from dollar reserve to gold reserve seems glacially slow, but that's to be expected given the nature of the system and the importance of preserving economic/financial/monetary continuity.

Another reason for the slowness of transition, as revealed by Paulson's de-coded message, is that the United States is resisting the transition. The U.S. simply does not want to give up the exorbitant privilege enjoyed by nature of the reserve status of its dollar.

Further evidence of this resistance also came recently from the Treasury Department's UnderSecretary, Tim Adams. Adams was interviewed two weeks ago (July 17th) in which the topic of the gold reserves of the IMF was addressed with regard to whether or not the IMF ought to follow suit with various other international central banking institutions in marking its gold reserves to market value and subsequently enjoying the benefits thus offered by beefy revalutions of gold to help backstop the IMF's meager financial position.

Tim said, frankly, "We, the U.S., do not think that gold is an appropriate option. For us, it is not an option."

The U.S., much like Rip vanWinkle, seems to have elected to effectively close its eyes as its official policy (military adventures aside), and snoozes in isolation as the surrounding world moves forward with inevitable changes. Such a closed-eyes policy may make for a more complacent "today" (as it has for these past several decades), but it will lead to a shocky, rude awakening when the dollar's special reserve status is rolled completely out of its cozy bed.


BeamerJohn Embry on ROBTV (re : Chris Powell #1463218/2/06; 13:31:03

I listened to the John Embry interview and I have a question to those most knowledgeable posters on this site. John mentioned that very little of the gold sales under WAG II have taken place this year. He stated that the end date for the annual sales of 500 tons occurs on September 26 coming, about 9 weeks away. I've picked up on those little nuggets supplied by Topaz concerning the delivery notices and I appreciate their meaning. Yet, the question lurks in the back of my mind. Are we likely to get bombed by another large sale of gold by the Central Banks? I have no doubts that the price of gold is going much higher once China opens their gold ETF but my observations indicate that it may not occur this year. I follow the FORUM on a daily basis and the insights by the many regulars are second to none IMO.
USAGOLD Daily Market ReportPage Update!#1463228/2/06; 14:43:53">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

Gold up, oil climbs on storm and Mideast fears

August 2 (from MarketWatch) -- Gold futures closed higher, though off their best levelsWednesday, finding support in renewed oil price gains as Israel vowed to press ahead with its military offensive in Lebanon and as a tropical storm churning in the Caribbean threatened to turn into a hurricane.

October futures closed up $5.20 at $657.60 on the New York Mercantile Exchange, its highest close since July 17. [The most active contract, December gold, settled $5.30 higher at $664.10.]

"Gold bullion broke out of its confined ranges and once again reasserted its safe-haven attributes in active mid-week trading," said Kitco's investment analyst, Jon Nadler. "Encouraged by firmer oil prices (an approaching tropical storm has made oil traders nervous) and a slack dollar (as employment numbers appeared to contract during July), gold finally overcame the $652.50 spot price resistance point."

Oil futures were last trading up $1.12 at $76.03 a barrel.

"Not only is the situation in Israel and Lebanon not resolving itself, it is widening," said Thomas Hartmann, analyst at Altavest Worldwide Trading. "Left to its own devices, Israel could spend inevitable months pounding Hezbollah positions and strongholds throughout Lebanon.

The question remains whether Syria and Iran will keep to the sidelines if this drags on."

As long as the uncertainty persists, gold prices will be supported, he said.

Technically, gold's "in a big area right now," said Charles Nedoss, gold analyst at Peak Trading Group in Chicago.

"We've had good support above the 10-day moving average for the past few sessions, we could see a nice move up from here."

---(see url for full news, 24-hr newswire)---

CoBra(too)@Miner 49er#1463238/2/06; 18:33:03


... Thanks for your input!


The Invisible HandShanghai and China#1463248/2/06; 18:42:17

Concealed SCO
The world is once again shrouded in a cold war, but this time a cold war shrouded in silence and concealment.
The emergence of the equally concealed Shanghais Cooperation Organization (SCO), sometimes termed as 'anti-NATO' or the 'NATO of the East,' is a testimony to the emerging hostilities, rivalry, opposition, and competition between the United States and its immediate allies and an emerging bloc based on the core of the Sino-Russian partnership that has been necessitated by the Russian and Chinese recognition that ultimately they are in the crosshairs of American hegemony.

Central bank calls for reins on bank lending
A report from the People's Bank of China has warned that unrestrained lending growth will continue to fuel economic overheating unless it is controlled.
Despite the government's macro-economic controls and stringent monetary policy, money supply jumped rapidly, noted the central bank.
Three (?) factors contributed to the lending surge.
The booming economy had buoyed up credit demand, while commercial banks enjoyed abundant capital to lend due to increasing liquidity and the widening gap between savings and lending.
Thirdly, commercial banks were paying more attention to returns and earnings, thus having more incentive to lend in a bid to profit, said the central bank.

If the link doesn't work, the headline is here;

The Invisible HandExxonMobil to build Russia-China natural gas pipeline #1463258/2/06; 18:52:35

KHABAROVSK, August 2 (RIA Novosti) - Regional authorities in Russia's Far East are considering building a new pipeline to pump natural gas to energy-hungry China, a local governor said Wednesday.
The governor of the Khabarovsk Territory, which borders north-east China, held talks on the pipeline with a representative of U.S. oil major ExxonMobil.

The Invisible HandReuters#1463268/2/06; 19:05:17

MOSCOW, Aug 2 (Reuters) - ExxonMobil Corp. (XOM.N: Quote, Profile, Research) plans to launch its De Kastri oil terminal, part of the Sakhalin-1 project in Russia's Far East, on Oct. 4, Russia's Vostok-Media news agency reported on Wednesday.
Vostok-Media said Viktor Ishayev, governor of Khabarovsk province on the Pacific coast, said construction of the terminal would be completed in early October, while a pipeline from the field to De Kastri had already been laid across Sakhalin Island.

More from the previous link
The governor said construction of the De-Kastri oil terminal in the Khabarovsk Territory had also been discussed at the meeting with Tern, and that the terminal, from which oil could be shipped to buyers in the Asian Pacific region, is slated to be launched on October 4.
Exxon Neftegaz Limited holds a 30% stake in the Sakhalin I project, the largest foreign direct investment project in Russia.
Sakhalin-1 is an international consortium comprised of Exxon Neftegaz, Russia's Rosneft (20%), India's ONGC (20%), and Japan's SODECO (30%), to develop the Arkutun-Dagi, Odoptu, and Chaivo deposits on the island's northeastern shelf. Their recoverable reserves are estimated at 2.3 billion barrels of oil and 484 billion cu m (17.1 trillion cubic feet) of natural gas.

The Invisible HandPaulson: strong dollar or strong yuan?#1463278/2/06; 19:45:08

This Table is trying today to interpret what Paulson means by a strong dollar.
But does he want a strong dollar? Or a strong yuan?

SNIP from tomorrow
Aug. 3 (Bloomberg) -- China's central bank reiterated the government's intention to rein in the fastest economic growth in a decade and foreshadowed several measures, including greater flexibility in the currency exchange rate.
``They are making progress, but it is painfully slow,'' said Donald Straszheim, vice chairman of Roth Capital Partners LLC in Newport Beach, California. ``The problems that confront China now are primarily the result of their continued intervention in the economy, by having decisions made by the government rather than allowing decisions to be made by the invisible hand (Thank You Bloomberg) of the marketplace.''
Paulson, in his first speech since taking over from John Snow a month ago, said on Aug. 1 that China needs to show ``more flexibility'' by easing currency restrictions. That echoed calls from People's Bank of China officials including Yu Yongding, a policy board member, and Tang Xu, a research director, for a stronger yuan.


What does that Paulson guy want? Strong dollar or strong yuan?

Contradictions can't exist.
Check your premises!

‘Tis impossible for the same thing to be and not to be at the same time and in the same respect. That's how the Principle of Non-Contradiction (PNC) is known since Aristotle.
This is a judgment which is naturally first, and which is presupposed by all other judgments.
The first judgment is called the PNC because it expresses the most basic condition of things, that they cannot be self-contradictory. The principle is based on "being", and expresses the consistency of "being" and its opposition to "non-being" ("non-ens")
It is quite evident that this principle is of basic importance, not only in spontaneous and scientific knowledge, but also in the field of human activity, since it is the first condition of TRUTH in any judgment.
(Alvira, Clavell and Melendo, "Metaphysics", Manila: Sinag-Tala Publishers, 1991, pp. 33-34).

The Principle of the Excluded-Middle states that "there can be no middle ground between being and non-being", or "there is no middle ground between affirmation and negation".
The judgment signifies that either a thing IS or IS NOT with no other alternative, and therefore, it is reduced to the PNC.
A middle ground is impossible because it would BE and NOT BE at the same time.
This principle is often used in reasoning, under the formula, "Every proposition must necessarily be true or false."
(Alvira et alt., op. cit., p. 40)

What's the middle ground between a strong yuan and a strong dollar?

Paulson is krazy!

MKIH. . .Miner. . .#1463298/2/06; 20:52:47

If you saw that post, it needs to be revised. Apologies, MK

In short, I wish to make the point that all currencies are inherently and intentionally weak and that all roads lead to gold. Our Secretary of Treasury has been caught up in the whirlwind of competitive devaluation and for political reasons wishes to cast it as something else. I'll rework the details when I have more time.

The Invisible HandReality check#1463308/2/06; 22:16:57

The loss of the dollar's exchange rate (its international buying power – convertibility) is indeed linked to its imminent loss of reserve status.

It is therefore all the more surprising that the price of gold (POG) is "rising" without the convertibility rate of the dollar decreasing.

The gold-wealth-concept is on the move, while the dollar is being drugged into believing that she is "strong".
Why this reversal of past evolutions? Nobody bothers, let alone that one looks for an explanation.

The manuals have no answer. THEREFORE, the problem is a non-existent one.

The premises have hereby been checked.

SundeckChina should actively manage 20-30 pct of forex reserves #1463318/2/06; 23:28:36


BEIJING (XFN-ASIA) - China should set aside 20-30 pct of its foreign exchange reserves to be actively managed, a government economist said.

Xia Bin, head of the financial research institute within the Development Research Center, a think tank under the State Council, also said that China should increase its holdings of gold 'at the appropriate time.'


Xia also said that the global trade imbalance can not be solved in the short term, and that any attempts to do so by China or the US would create 'unimaginable, unacceptable and drastic volatility' for the global economy.

Sundeck: Some recurring themes...increase holdings of gold, iron out trade imbalances slowely...


GOLD FINGERDo any of them have any credibility left??#1463328/2/06; 23:46:31

Article after article continue to point out the misgivings of our current affairs. I am wondering if there is any trust left?

It's just so blatant!

RE: miner49er (8/2/06; 01:00:37MT - msg#: 146313)

Quote from:

But if you play the game your new bosses want you to play, your credibility with the public will evaporate in no time at all.

The dollar is dieing a slow death.


melda laureKill time, murder Logic, destroy physics, Godel Economics according to Paulsen#1463338/2/06; 23:53:48

Kurt Godel destroyed the PNC. Aristotle was wrong, or half right (isn't that logic delicious? Here, toke on this hobbit weed...)

So the dollar is "strong" in terms of Yuan (for the present) and euro, yen, and pound. Yet outside the tavern where currencies are trading, a golden mushroom is rising (smelling distinctly of naptha) Keeping one's reality to the inside of the inn and the dollar IS strong.

Poke one's head out of the smoke filled gaming salon and things look different. Which is the real reality? I'll vote for the mushroom, and not a mere game of chance.

Hmm.... To snip from C. Laird's article (the rest of which I do not necessarily agree with), this part is germane:

First of all, let us take a look at a typical US dollar argument VS gold. The usual argument is that the world will abandon the USD because the US has such deficits. This is the classic economic view, as if fair play in markets really exists. In other words, simple economic rules of fair play will initiate a decline or collapse of the USD, and consequently of the US way of life.

A more informed view would be otherwise. This view is that the collapse of the USD would remove the US from the forefront of world economic and military supremacy.

And, that our enemies and friends would NEVER allow a collapse of the USD without these issues in mind.

But, what of the possibility that the coming USD collapse will be allowed to happen, or caused to happen in conjunction with devious and damaging agendas against the US?...

END snip.

WaveriderSir MK#1463348/2/06; 23:59:15

A few days ago, you asked if anyone was thinking oil embargo. I've been asking myself why President Chavez was visiting Iran recently. What if Iran and Venezuala (and Russia)were to simultaneously announce that they were going to sell oil for euros. Is that logistically posible, and what would the repercussions be, aside from an immediate (I'd think) US$ depreciation? Would that strategy not target the US specifically, rather than an embargo that would effect all economies with 3-digit POO? Cheers,


melda laurea Game of Musical Chairs, but there are no prizes for winning.#1463358/3/06; 00:11:09

Sorry, I dont know what the message # was, it was in the last couple of months.

What's the middle ground between a strong yuan and a strong dollar?

Paulson is krazy!

Sir IH, you recal perhaps the tale of My Payday gaming days, when we ran out of cash and I as banker had to make up extra fancy notes to provide adequate circulating media? And then one day I brought in 3 cupcakes (banker's price: $4000) You remember the fate of the three cupcakes? The first was eaten. The second traded hands at a premium. The third was saved, then eaten. At that point, the looser who traded his cupcake for 300% profit tried to buy it back at an even more absurd price- realizing that he had just sold the ONLY REAL thing in THE GAME! And of course the game was over at that point.

TopazStrong Dollar.#1463368/3/06; 00:17:05

The view of the Forest is clearly different to that of the Trees, I'd posit...and of course Gold smelt a Rat back in Jan '05 as she decidedly abandoned ANY relationship, inverse or otherwise, with Currencies.
The accompanying Chart clearly shops this with a slight adjustment to the scalings to reflect the reality ie: PoG/DX in lockstep 'till the '05 roll-over does any good Gold:Currency Chart.
PoG reflecting inverse Dollar? 18 mth's ago, forget about it ...yesterdays news!
In fact PoG and Buck seem more content to rise and fall together lately ...Go Buck ...and Gold!

GOLD FINGERThe ride is what makes it fun!#1463378/3/06; 00:27:16

USD is up...POG is up!...Up or down...This rat ( My Oriental Astrological sign) is never going to eat, sell or trade his cupcakes!~

GOAL: Each month I will purchase some nice shinny stuff to add to my very own treasure chest. It's looking rather lovely now...JUST WAIT!


TopazBonds. The other little arm wrestle..#1463388/3/06; 00:35:47

...brewing here is that between Mr Market and Management as to the future direction of the Economy.
The last round saw Monsiour balk quite sharply at 5%.
Will we see another rebound against the managed stonewall ...or will it prove to be yet another Maginot Line and sail right through this time? bet, the Latter.

TownCrierCHINA: Investment in gold is still warming up#1463398/3/06; 02:21:35

(People's Daily Online) August 03, 2006 -- Affected by the continuous weakening of the US dollar, the gold price on the first exchange day or the last exchange day of July on China's market continued rising. On July 31st the prices of all the items on Shanghai Gold Exchange changed to a rising trend.

...after experiencing several major slumps from spring to summer, more and more investors are eager to make some earnings from the gold market. At the same time banks present paper gold, physical gold, and financial goods connected with gold -- one after another. Gold has provided a new channel for investment following stocks, foreign exchange, futures and real estate.

...domestic consumption of gold totaled 213.2 tons last year, ranking the fourth after India, the United States and Saudi Arabia...

However, because the gold exchange on domestic market still lies in the initial stages, the exchange volume of gold is still small...

The time of gold market settling in China is not long; not until July of 2005 did the Shanghai Gold Exchange begin to open formally to the public, without offering service of option transaction. Now there are mainly two parts for the investment in gold. One is physical gold, the gold bar, yellow boy and golden jewelry included. The other is paper gold; by owning a piece of warrant instead of physical gold one can attain proceeds with the rise and fall of gold prices.

While most consumers buy gold jewelry either for the sake of dressing up or presenting gifts, few take investment returns into consideration. Though some of the customers have the intention of making some investment, they are still looking on but do not take actions.

The latest statistics issued by the World Gold Council demonstrates that at present the consumption volume per capital in China is only about 0.2 grams, far below the level of 10 grams per capital in other nations and regions in Asia. Furthermore the investment proportion is even less.

From middle May, the gold spot price, after having successive surges, has fallen back to around US$ 640 from US$ 730 per ounce, but the average weekly price saw no big slumps. The analysts view that gold is still on a bull market and has no sign of weakening.

^---(from url)---^

It suffers a little in the translation to english, but the gist of it is certainly clear enough.


The Invisible HandSCO Secretary General meets US Assistant Secretary of State#1463408/3/06; 04:01:11

On 2 August 2006, Secretary-General of the Shanghai Cooperation Organization (SCO) Zhang Deguang received at the SCO Secretariat US Assistant Secretary of State Richard Boucher and accompanying persons on their request.
Is anybody panicking?

ShantiNew currency ?#1463418/3/06; 07:24:49

In principle, the GCC plans a common market among member states in 2007 and a monetary union and a single currency by the start of 2010.

brewing until ripe?

Clink!Diet Coke, Mentos and economic theory#1463428/3/06; 07:30:23

This post is not (entirely) frivolous. Once you have watched the movie (my jaw dropped), you can go to other pages at the addressed site which explains what is happening. Essentially, a Mentos dropped into Coke will cause a spontaneous "undissolution" of CO2 so powerful that it cannot escape from the bottle in an orderly fashion. No-one knows exactly why it happens, as the effect is different with the object dropped into the soda, and the type of soda - by the look of things, the guys at the site are going to have a lot of fun creating a lot of mess experimenting to find out. There are other movies on the Web which show the soda bottle being used as a projectile - it can go over 50 yards so can be pretty dangerous.

So how does this relate to economics ? Well, suppose the economy is a bottle of flat water. No danger there - you can shake it about as much as you like and there's no pressure generated. Now introduce some carbonated water in the form of derivatives. If the bottle just sits there, there is still no danger, and the dissolved gas will slowly escape from the open top. Everyone knows that the bottle needs to be handled with more care, but the result is a more enjoyable beverage, so the risk is worth it. As the concentration of carbonated water increases, so does the risk. Eventually, any little thing falling into the bottle either as an accident, a mistake or by design, and KABLOOEEEEE !

This is why anyone that thinks that imbalances can be rectified by just letting things sit and correct "naturally" is dreaming. With no correction mechanism in place, the soda just gets more and more frothy.


968ECB - 3 August 2006 - Monetary policy decisions#1463438/3/06; 09:02:30

At today's meeting, the Governing Council of the ECB took the following monetary policy decisions:

1. The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.0%, starting from the operation to be settled on 9 August 2006.

2. The interest rate on the marginal lending facility will be increased by 25 basis points to 4.0%, with effect from 9 August 2006.

3. The interest rate on the deposit facility will be increased by 25 basis points to 2.0%, with effect from 9 August 2006.

GoldiloxGCC "single currency"#1463448/3/06; 09:55:17

@ Shanti,

Plan "B" for the Islamic Gold Dinar?

Or pure FIAT, to quell the disdain of western banks and PTB?

Are they learning to play the "spin game" from Libya?

968Bank of Italy slashes dollar holdings in favour of UK pound#1463458/3/06; 09:56:37

Italy's central bank has switched a quarter of its foreign currency reserves into sterling, dumping billions in US Treasury bonds, in the most dramatic move to date by a G7 country to slash exposure to the dollar.
First move by Prime Minister Prodi (= the former President of the European Commission) ?

KnallgoldProdi#1463468/3/06; 10:06:04

Somehow Prodi must think the pound will prefer to join the euro instead of going down the tube with the $.
968@ Knallgold#1463478/3/06; 10:18:18

Indeed !
What do you think ? Will the UK join the Eurosystem in the long run ?

melda laureDe-Rezz'ed#1463488/3/06; 10:42:00

Trop storm Chris seems to have fizzled...the high altitude clouds are gone, the water vapor image is gone. Gandy, was this your doing? It wasn't me (I swear). I dont know what they call that "thing" rotating off the east coast of florida, but the flags are up for the weekend.

Oil can go back to discounting the Lebanese Football Game, as there's no news in the gulf (as if we needed another headache). Gather ye nuggets whilst ye may.

Knallgold968#1463498/3/06; 10:44:05

Britain joining the eurozone seemed always an impossibility,a big majority of the people are against it and Tony made a promise that there will be a public vote.Nevertheless,FOA et al. kept on insisting that she WILL join.I concluded that there will be some event or something else which will add unrefutable pressure to go euro.pandagold gave some hints along these lines.

Only question is,does the UK have enough PHYSICAL Gold left for going on a Gold MTM reserve standard?

968@ Knallgold#1463508/3/06; 11:54:12

What if the UK-gold, or a significant part of it, was sold to the BIS in some form of contract (off-balance) as 'an entrance fee' to the Eurosystem in a later stadium ?
USAGOLD Daily Market ReportPage Update!#14635108/03/06; 15:40:31">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

August 3 (from MarketWatch) -- Gold futures closed lower Thursday, joining a pullback in oil prices as Tropical Storm Chris weakened, easing concerns it might become a full hurricane and damage infrastructure in the Gulf of Mexico.

Gold for October delivery closed down $7.10 at $650.50.

The contract gained more than $5 on Wednesday to close at its highest level since July 17, finding support in rallying oil prices and the continued violence in the Middle East.

Creating more crosscurrents for gold, the dollar traded mixed after a surprise interest-rate hike from the Bank of England that preceded an expected rate hike from the European Central Bank.

The Bank of England raised its key interest rate by a quarter of a percentage point, to 4.75%, and thus took back a quarter-point cut it made a year ago. In the statement accompanying the move, the central bank said that the pace of economic activity has quickened in the past few months and that higher energy prices have led to greater inflationary pressures.

The ECB also hiked by a quarter of a percentage point, taking its key rate to 3%, in a move also aimed at taming inflation.

The rate hikes come just days before the Federal Reserve holds its August meeting, with financial markets divided on whether or not U.S. policymakers will vote to raise rates an 18th consecutive time or not.

"Evidently, the fight against inflation is also a global war, just like the war on terror," said Kitco's analyst Jon Nadler.

Nadler is expecting the impact of various interest rate moves across the globe to become less important to metals once the gold jewelry season starts in late summer.

"For the moment it looms rather large in the eyes of investors and it also gives rise to more speculation that the US Fed may also have a surprise in hand next week-- this, despite every indication of a cooling (if not yet glacial) US economy," he said.

---(see url for full news, 24-hr newswire)---

SundeckChina's "strong yuan policy"??#1463528/3/06; 19:57:14


CHINA'S central bank has vowed to make its exchange-rate regime more flexible in broad efforts to cool credit-spurred economic growth, a sign analysts say could lead to a long-haul appreciation of the yuan.

The People's Bank of China plans to balance international payments by a raft of measures involving "propping up the yuan's flexibility," it said late on Wednesday in a statement through Xinhua news agency.

Other incentives will cover bolstering domestic consumption and diverting household savings as well as encouraging imports and urging private funds to invest overseas, it said.

Sundeck: 'ullo, 'ullo, 'ullo! What's all this, then? Moves afoot in out-of-control China to let the yuan rise and rein in the economy and balance of trade?


GoldendomeAmen! Brother #1463538/3/06; 23:48:54

But of all the consequences of central banking and fiat money, war is the worst because it exacts the biggest price from citizens and foreigners and everyone else caught in the crossfire. That is why sound money — by which I mean the gold standard — is a key to peace and freedom.

-- Lew Rockwell

GOLD FINGERI could have not said it better!#1463548/4/06; 00:56:39

EXACTLY SIR Goldendome!

RE:Goldendome (8/3/06; 23:48:54MT - msg#: 146353)

GoldiloxBanking and War#1463558/4/06; 01:25:34

@ Gold Finger and Goldendome.

. . . and why the "Money Masters" and "Wizards of Money" episodes are so "controversial".

For those who haven't already, see 2/17 archives:

Kilo (2/17/06; 09:48:11MT - msg#: 141736)
Trivial Pursuits
Sometimes we spend too much time trying to understand individual pixels when we need to spend a little more time on the whole picture.

Money Masters Part 1:

Money Masters Part 2:



The same thing happens in "official science". Instead of returning the fruits of serious research to their funding taxpayers, NASA gives us "Tang", the legacy of our "space program." Real space conquest is done by Bert Rutan and privately funded pioneers for less than NASA spends on PR!

But Bucky Fuller said it best: "When a greater proportion of GDP is invested in securing the status quo than on true progress, that society is in decline"

- paraphrased

GOLD FINGERIf your angy at someone...dump the USD!#1463568/4/06; 10:22:33

I do think that leadership in this country is what sets the tone or "physiological" impact upon the Citizens here and the people of the rest of the world. We've had big dept before, but with all the world events and negative impact and lack of good diplomacy I can see why SO many are loosing more and more confidence in the USD.

I read a similar article that Italy was dumping billions in us Treasury bonds and converting to Sterling! follow I am sure

GoldiloxPhysiological Impact?#1463578/4/06; 11:54:36

@ Gold Finger,

"I do think that leadership in this country is what sets the tone for "physiological" impact upon the Citizens"

While I would agree that the Supplemental Medicare (Big Pharma price support) bill, and the general attitude of the admin toward drug supplier liability, the CODEX, and subsidized mass purchases of unproven vaccines and "remedies" reflects the admin's general attitude about "physiology", many would suggest I am moving too far afield of topic.

Do you possibly mean "psychological" impact?

Or are you just using that term as a euphemism for "generally peed off"!

TownCrierGoldendome msg#: 14635, taking a HARDER look at fiat and war#1463588/4/06; 13:14:41

Attractive as it would be to simply take Rockwell at his word regarding his association between themaking of fiat money and the making of war (essentially saying that war could be abolished if fiat currency were abolished), history begs us to indentify that notion as a utopian falsehood. Two handy examples from very close to home (in space and time) provide the necessary instruction on this point.

1) We launched into the U.S. Civil War despite our being on a bi-metallic (gold and silver) currency system.

2) We launched into World War I despite many of the participants being on a gold standard.

Sure, paper greenbacks and confederate currency came along to prominence in the Civil War, as did the abandonment of the gold standard and implementation of fiat currency in WWI, but this development misses a most important point.

That point being, if the metallic monetary standard fails to prevent the war in the first place, then all subsequent arguments about the nature of money goes out the window. Because once a nation deems itself engaged in a struggle for its very survival, there is no power on Earth that can compel such a nation to cling fast to its metallic currency standard if the legislators deem that a fiat currency would be expedient to facilitate the war effort.

Here's the bottom line on it: In the very thick of it, the scale and scope of a nation's participation in war is not limited by the extent of the metal or paper fabric of a nation's currency, but rather by the extent of that nation's real resources. Throughout the affair, the role of money (whether in the form of gold currency or paper) is merely an accounting mechanism that the nation uses in the economic mobilization of its resources and production.

And as it all shakes out, the wealth of a nation in PEACETIME is ALSO determined in very much the same way -- upon the extent of its resources and the efficiency of its production and mobilization of capital. And the role of money is to help organize and lubricate the workings of the economy. To be sure, any gold metal within a nation is counted among the nation's total stock of resources, and very obviously, it need not (and ought not) any more than any other physical resource be enmeshed (underutilized) in the physical makeup of the nation's currency/banking system.

Given the structure of fractional reserve lending as the basis of our monetary system, the cold hard truth is that use of metallic (gold) currency propagates a nasty falsehood -- the coins are just a subset of the entire money supply but it nevertheless causes ill-informed participants to wrongly believe that the entire money supply is "as good as gold".

It is Another cold hard truth for some people to swallow, but in light of the preceding paragraph, the use of a fiat (paper) currency system is a much more honest means to represent the intangible "nothingness" -- the appropriate embodiment of the network of accounting which is the actual basis of a monetary system.

Clearly, the conclusion to be had from all of this is that a nation's monetary/currency system does not represent the wealth of that nation. Money is merely a utility to be used, to be borrowed and spent. Again, think of it solely as a mobilizing lubricant within an economy -- it has value while in use, but none otherwise. The wealth of a nation, and of its people, is not in its artificial money, but rather in its various resources which can be mobilized for both local and international deployment. It makes little sense to "save" money, as money is an ethereal utility which can be mismanaged and hyperinflated into dysfunction.

Because of this difficult truth, "Your wealth is not what your money say it is," as Another used to say. Instead, your wealth, properly measured, is the tangibles you've accumulated, the store of resources you've saved. And among the world of tangibles, gold is globally the most liquid -- the most universally recognized, honored, and accepted.

In time of war, governments may (and history has shown they often do) recognize and declare that gold is too valuable to be wasted underutilized (undervalued) in the representational coinage of national currency. Therefore, fiat currency is adopted, and gold is instead mobilized in its fully-valued form -- a tangible resource uniquely and reliably suitable for any and international settlements.

Blunt summary:
Our monetary system, in an attempt to be HONEST, chooses mere digits and PAPER as its representational currency. And consequently, in an effort to act WISELY, we unabashedly use this currency for immediate transactions, whereas we SAVE for our livelihoods by acquiring GOLD.


Federal_ReservesThe dollar really dropped today#1463598/4/06; 13:39:52

when the wall street crowd start shouting that the FED is done because the unemployment rate went up a couple of points. Fed Fund futures are saying its an 80% change they will not hike. In the details of the report, it did show wages were up and that may hold the FED on its steady course of increased. Don't know. I probably think its more like a 50-50 bet.

I can say, if the FED doesn't raise 25bps next week it might really slam the dollar and break key support.

To me the gold chart looks bullish. If you connect the last two tops with a straight line you get the resistance line. If it breaks up and out it could really go!

Rest up on the weekend, because next week is going to be exciting!

Chris PowellNewmont president to address October CMRE meeting in New York#1463608/4/06; 14:27:19

3:49p ET Friday, August 4, 2006

Dear Friend of GATA and Gold:

The fall dinner meeting of the Committee for
Monetary Research and Education, to be held
in New York City on Thursday evening, October
19, will have some speakers of special
interest to gold and silver investors. Among

-- Pierre Lassonde, president of Newmont
Mining Corp.

-- Paul van Eeden, precious metals newsletter
writer and international lecturer.

-- Bob Hoye of Institutional Advisors, whose
market commentaries are often featured at
metals-oriented Internet sites.

-- Alan Brown of Aurumbank Inc., who may be
best known for the gold and financial market
commentaries of Professor von Braun of the
Rocket School of Economics.

As is customary, the CMRE meeting will be
held at the beautiful Union League Club at
38 East 37th St. in Manhattan, just a few
blocks south -- easy walking distance --
of Grand Central Station. The meeting will
begin at 4 p.m. with a cocktail hour and
get down to business at 5. Dinner will be
served at 6 and things usually wrap up at
about 9:30 p.m.

Your secretary/treasurer and other GATA
partisans plan to attend, but don't worry;
we're always very well-behaved, even when
people connected to the Federal Reserve
and Treasury Department are speaking. But
if there is enough interest afterwards,
we'll lead a march downtown to the corner
of Broad and Wall streets to protest naked
shorting, and with luck we'll still have
our clothes on.

Tickets are $155 each for CMRE members and
their spouses and $165 for others.
Reservations are necessary and should be
made with CMRE President Elizabeth Currier

Elizabeth Currier, President
Committee for Monetary Research and Education
10004 Greenwood Court
Charlotte, North Carolina 28215-9621
Telephone: 704-598-3717
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

We hope to see you there.

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

Chris PowellBarrick cuts gold hedge by 7.7 million ounces, leaving 13 million#1463618/4/06; 14:30:03

Gold Bugs Look to Smaller Stocks;
While Barrick Seen as Good Bet,
Analysts See Better Gains
in Small- and Mid-Caps

By Shirley Won
The Globe and Mail, Toronto
Friday, August 4, 2006

Barrick Gold Corp.'s stock may appear to be gaining more lustre thanks to its takeover of Placer Dome Inc. and the elimination of Placer's hedge book, but analysts say the big gains are still to be had with the smaller gold miners.

The world's largest gold producer is basking in a somewhat muted limelight after its record $459-million (U.S.) second-quarter profit that got a big boost from soaring metal prices and the acquisition of Placer last year.

Shares of Barrick fell 28 cents (Canadian) to $35.93 yesterday on the Toronto Stock Exchange after climbing more than 7 per cent in the five days preceding its earnings release after the close of trading Wednesday. On the New York Stock Exchange, its stock finished off 37 cents (U.S.) at $31.83.

"They [Barrick] have been hampered by being overly hedged ... and they still have a significant hedge going forward," Desjardins Securities analyst Michael Fowler said yesterday.

Hedging is a technique in which a company contracts to deliver gold in the future at a particular price. It can protect miners from falling gold prices, but hampers profit in a rising price environment.

On Wednesday, Barrick said it has reduced its hedge book by 7.7 million ounces so far this year. The update came as it announced stellar results that topped the highest full-year profit of $401-million made to date by the Toronto-based gold mining giant.

Barrick's unwinding of the Placer Dome's hedge book is "positive," but the remaining position is still around 13 million ounces if one includes the company's development projects like Pascua-Lama in South America and Pueblo Viejo in the Dominican Republic, Mr. Fowler said in an interview.

The gold giant's growth strategy has been focused on building a pipeline of projects through acquisitions like Placer Dome in March, and a decision to make a $1.3-billion hostile bid for Vancouver-based NovaGold Resources Inc.

While Barrick has some big projects in the pipeline, Mr. Fowler said the problem is that much of that increase will be offset by production declines at maturing mines.

While he has a "buy" on Barrick with a one-year target of $47.50 , he prefers mid-tier gold producers like Iamgold Corp., Kinross Gold Corp., and Agnico-Eagle Mines Ltd.

Veteran gold watcher and analyst John Ing of Maison Placements Canada Inc. echoes a preference for mid- and small-capitalization gold miners over Barrick.

"The hedge book has always been a problem, and maintaining growth has always been a problem," Mr. Ing said. "If you are a gold miner, you have to grow because you are quickly depleting your resource ... Virtual size precludes them from being able to grow other than through acquisitions."

Mr. Ing prefers smaller unhedged gold companies like Eldorado Gold Corp., Agnico-Eagle, Bema Gold Corp., and Kinross, "which have superior growth prospects."

"Barrick would be a more conservative bet," Mr. Ing said. "Rising tides lift all boats. I expect that the $850-level [per ounce for gold] will be surpassed within the next 12 months, and that will lift all stocks."

Hayward Securities analyst Kerry Smith said Barrick is his big-capitalization gold pick, adding that it should only be compared with peers like Newmont Mining Corp. and AngloGold Ashanti Ltd.

Barrick's profit and cash flow are "relatively predictable," said Mr. Smith, who has a "buy" on Barrick with a one-year target of $44 (Canadian). "They are well capitalized. They don't have balance sheet issues."

If you go to smaller gold miners, "their balance sheet may not be quite as good, and they have a lot of their share price predicated on growth, and they have to deliver on that growth," Mr. Smith warned.

"There are more risks attached to a growing company versus a company that is just maintaining the status quo [in production terms], which is what Barrick is doing."

Chris PowellBarrick plans to keep at least 9.5 million ounces on hedge book#1463628/4/06; 14:31:04

11:30a ET Friday, August 4, 2006

Dear Friend of GATA and Gold:

On the basis of Barrick Gold's Thursday
conference call with financial analysts,
MineWeb's Dorothy Kosich reports that
Barrick does not intend to close at least
9.5 million ounces of the 13 million
ounces remaining on its hedge book. The
MineWeb story also includes comments on
Barrick's bid to acquire NovaGold. You
can find it at the link above.

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

USAGOLD Daily Market ReportPage Update!#1463638/4/06; 15:04:17">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold down from intraday highs, up $8 for week

August 4 (from MarketWatch) -- In Friday's release of data, nonfarm payrolls expanded by a lower-than-expected 113,000 in July, raising the odds that the Federal Reserve won't raise U.S. interest rates again when the central bank's policymakers convene on Aug. 8. The dollar weakened markedly against foreign currencies on the heels of the data.

Trading in a volatile pattern, gold for October delivery settled down 90 cents at $649.60 on the New York Mercantile Exchange, after being up as much as $9 earlier in the session. Last Friday, when the front-month contract was August, gold closed at $634.80 on NYMEX. October futures were at $641.40.

"A new all-time high in gold is not a question of if, but when," said Peter Grandich, editor of The Grandich Letter. Grandich cited a combination of factors pointing to higher gold prices: a dollar that he called "terminally ill," geopolitical hotspots that "look like they have to get worse before they can get better" as well as favorable investment demand and gold now entering what's traditionally a seasonally strong period as jewelry purchases ramp up.

Kitco's analyst Jon Nadler said, "The perception of the cooling economy reinforced the position of those market participants who believe that next week's Fed meeting will be just that -- a meeting without a resulting change in interest rates, however, "there remains "ample evidence that inflation is ... alive and well." Indeed, the Labor Department's payrolls report showed average hourly earnings are up 3.8% in the 12 month through July.

"The combination of these opposing forces signals stagflation -- a scenario feared by many, especially in an election year."

(from Reuters) -- Electronic trading of financial, metals and agricultural futures at the Chicago Board of Trade was halted by technical problems on Friday, triggering shutdowns at exchanges in Kansas City, Minneapolis and Winnipeg, Canada.

Electronic trading at all the exchanges resumed at late morning, after about two-and-a-half hours, but the shutdown raised some questions about the CBOT's trading platforms. The glitch came as CBOT gold volume so far this week had been surpassing that of the once-dominant COMEX gold futures.

At settlement, COMEX most-active December gold was down $1.00 at $656, while on the Chicago Board of Trade, December gold was trading 70 cents lower at $656.70 as of 2:42 p.m. EDT.

---(see url for full news, 24-hr newswire)---

TownCrierTreasury secretary to attend inauguration of Colombian president#1463648/4/06; 15:19:16

WASHINGTON (AP) - Treasury Secretary Henry Paulson plans to lead a delegation to Colombia on Monday to attend the inauguration of Colombian President Alvaro Uribe, a spokesman said Friday.

President Bush asked Paulson, who took the Treasury helm in early July, to make the trip. Commerce Secretary Carlos Gutierrez also will attend the inauguration...

Paulson plans to meet with Uribe. He also plans to meet with Peruvian President Alan Gracia, who is also expected to attend Uribe's inaugural ceremony...

^---(from url)---^

How well do you understand the foundation of the U.S. Dollar and the Treasury bond?

It shouldn't surprise anyone that, from among the broad Cabinet of luminaries and dignitaries, it was the Secretary of the Treasury who was chosen as the principle represetative of the United States for this particular house call.

The foundation is eroding. Choose gold.


osa104cNow I can $EE #1463658/4/06; 15:46:04

If the American people ever allow private banks (the Federal Reserve Banks) to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.." -- Thomas Jefferson

There are two ways to acquire the niceties of life: to produce them or to plunder them. When plunder becomes a way of life for a group of men living to- gether in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it.

Congress shall have Power to coin money and regulate the value thereof ... No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.
-Art.1 Sec. 8 & 10

America's system of constitutional, commodity-based money functioned well in our nation for 125 years, from 1792 to 1913. Then "We the People" made a big mistake - we allowed a privately owned corporation called the Federal Reserve to begin creating paper money instead of gold and silver coins as the Constitution requires.

History has proven time and again that neither bankers nor governments possess the discipline needed to limit the amount of credit (or paper money) to equal the true supply of gold and silver coins. So the supply of paper money (credit/debt) must continually rise. The result is always disastrous in the long term because the economy suffers through cycles of inflation, deflation, artificial growth, recession and depression. Because U.S. citizens did not protest the use of trust money, our economic system then began to degenerate into untrustworthy or fiat money.

Lenin pondered this modern flaw in the Capitalist system stating, "The best way to destroy the Capitalist system is to debauch the currency. The process of inflation is so insidious that not one in a million can properly diagnose it, until it is too late."

The above is elementary to some, if not most. For those fortunate soles discovering this forum (thank you MK and all) stay tuned. The truth is VERY powerful, but cleverly hidden from most........................Acquire GOLD.....always remember debt steals and gluttony blinds.........................AMF

TownCrierReplacement is the new 'growth' in gold industry#1463668/4/06; 16:56:31

JOHANNESBURG ( -- Growth in new production across the global gold industry is not going to spike any time soon, despite a spot price currently at multi-decade highs.

Ian Cockerill, chief executive of Gold Fields, describes replacement as the new growth in the global mining industry, with very few large scale deposits being found to mine.

"The net result is that it is almost inevitable that new mine supply is going to decline, before it recovers, if it ever does recover," Cockerill told guests at his company's fourth quarter results presentation...

"I always believed it is the role of an executive team not just to look at the next quarter, our job is to make sure in 10-20 years time we still have a company," said Cockerill.

Globally, Cockerill says there are projects, which are looking attractive at existing gold prices, but that production costs are also on the rise.

"People look at a rising gold price, and say where is the problem, there should be plenty of new mines coming on board. They are forgetting the other side of the equation and that is the input costs."

These costs have increased dramatically in the last few years, and Gold Fields says it is working hard at keeping costs in check.

"What five years ago would have been an attractive project at $400/oz, might need $500/oz maybe $600/oz today, simply because of the cost of tyres, fuel and such lot," says Cockerill.

^---(From url)---^

"I always believed it is the role of an executive team not just to look at the next quarter, our job is to make sure in 10-20 years time we still have a company..."

That is EXACTLY what many gold mining shareholders/investors do not fully understand.

In order for a mining company to still be in the business of mining for as long as possible, they have to extend the life of their mine for as long as possible.

To do this, coincident with an increase in the general price level of gold, the miners will always seek to expand the life of their reserves by mining (at greater costs1) the ever-more-marginal regions of their orebodies.

As a result, the executive policy is that mines are generally always operated at break-even strategies, and hence there is rarely any fat profitability to be distributed to shareholders in the form of dividends, and also precious little rationale for capital gains as the most business-savvy investors are too wary to bid up the share price to chase that elusive goose.

As time marches on, even the most pedestrian of investors will come to realize that PHYSICAL gold is the most natural and reliable strategy for both achieving security and serving their quest for capital gains.


Mr. GoldfingerThe poor USD.#1463678/4/06; 20:40:49

The spenden good money after bad has taken on a new meaning. The US is losen in Iraq, Lebanon, and has pulled outta Afganistan. The USD is toast. Gold is the best alternative.
Mr. GoldfingerThe poor USD.#1463688/4/06; 21:15:16

I think I finally figured it out. The US attack on Iraq was only done to give support for an Israeli attack on Lebanon. There is no other reason for the attack on Saddam and company. They decided that 3 years would give them enough time to subdue Iraq. Then Israel would attack Lebanon. Syria would be isolated and so fall then the new juggernaut would move on Iran. They haven't acheived their first goal.
Ten BearsCatch-up#1463698/4/06; 21:52:28

Thanks to the posters here for sharing their wisdom and their information references, and thanks to the proprietor for providing this site.

It is always a pleasure to catch up on a few days or weeks missed posts and discover recent additions to posting names.

Melda Laure, there is poetry in your words, thanks for the good reads.

White HillsMr. Goldfinger, you figured it out??#1463708/5/06; 00:03:36

How silly! I never read a theory so absolutely wrong. Please stick to gold and economics and leave the military and political thinking to others.

White Hills

melda laureNot for us a honey-tongued hitler, nor pudgy Churchills,#1463718/5/06; 00:26:57

What sir TC! You mean higher prices WONT bring on ramped up gold supply!? Where have I heard that before? Dont you belive in supply and demand? [maniacal laughter!]

I was rather shocked to read Martin Goldberg's thursday (8.3.2006) market wrapup:

"A stock market that can be led by a company sporting GM's current (lack of) fundamentals is capable of doing practically anything in the intermediate term... ...this is a market containing crumbling internals which is capable of doing almost anything in the intermediate term." [ML comment: rather like a drug addict!]


Fuel Free cars couldn't save GM, (toyota would win).

The referenced article in Lew Rockwell was also quite frightening, not for what was said- (which crimes and indictments we have heard uttered in these halls long ere today), but because of who was saying it. Who now can doubt that gold is "managed"?

I'm reaching the end of reason here, Sir Ten Bears, it is said at the end of rome, those who still saw clearly enough retired from The City to their country estates there to compose poetry - presumably because public discourse had become futile! Amazing that Ms. Holloway and Mrs Yates both merit equal time with 100,000 iraqui demonstrators in downtown Baghdad.

Master Kosares, if ever there is time, a complete CD-rom of the forum archives in text files, (or a suitable FTP link) would be a handy addition to your wares. The internet is now the last bastion of freedom, use it well while it lasts.

While iraq may be #15 in oil production it is thought to be #3 in reserves- #2 if you misdoubt the Saudi's reserves. Yet beyond that, Sir Golddigit, between Jerusalem, Babylon and Gizeh lies an ancient bond predating man's use of oil. (and do not forget Baalbek in that list.) Indeed, some claim it predates men (but not gold)! Enough of such things, clearly you at least feel that something more than mere greed is at work.

In the last days of its might before numendor fell, Ar Pharazon built his great armada, and went off to the conquest of Valinor, as in the title of Mr Bernsteins book, "against the gods". Too bad that fate has not gifted us a leader with the eloquence of el dichoso y ingenioso hidalgo, (aunque tenga el ceso bien seco y con poca sal) don Quixote de Crawford, o Little Rock, or whatever home town you like as these gentlemen have not the eloquence of FDR nor of Reagan, not that it matters for we are cursed with an inordinate number of ill-cast sanchos from Mr ORillemUp to the doofuses on CNN-lebanese-football-season or the CNBC clown-fest.

Gentlemen of the media- scoring political points wont matter once we're all dead. With your high calibre of modern day info-crusaders, our enemies may just decide to sit down and laugh at us until the dollar explodes over our fatuously inflated heads: the dollar toilet has a golden pull chain.

At the least we can die laughing at our "bipartisan" leadership as we laugh all the way to the coin shop.

GOLD FINGERBE TUFF!#1463728/5/06; 00:34:07

I think it's good to hear and even read about ones perspective on things. I may not always agree but the insight may offer or even spur a thought.

Some may add something more constructive and others will even add something even critical. As we can very well see the USD is not the only thing that impacts the PoG.

There are many elements that are involved. I think we need to realize this and just accept it. Religion and Politics aside, they do have an impact.

melda laurePaper covers Paper sins.#1463738/5/06; 00:52:46

Well that was ill timed! Sorry!

Our suspicion has been that the "Working Group" established by law in 1988 to buy markets should declines get out of control has become far more interventionist than was originally intended under the law. This group has since been dubbed the Plunge Protection Team. There are no minutes of meetings, no recorded phone conversations, no reports of activities, no announcements of intentions. It is a secret group including the Chairman of the Federal Reserve, the Secretary of the Treasury, the Head of the SEC, and their surrogates which include some of the large Wall Street firms. The original objective was to prevent disastrous market crashes. Lately it seems, they buy markets when they decide markets need to be bought, including equity markets. Their main resource is the money the Fed prints. The money is injected into markets via the New York Fed's Repo desk, which easily showed up in the M-3 numbers, warning intervention was nigh.

Only oil can cover oil sins. And only Gold can cover those who buy physical. We have "transgressed" greatly against the paper iniquities, so sin all the more that your "grace" may "abound".... (that's supposed to be silly Sir White Hills, but I will try to restrain myself)

Exactly what are TPTB doing behind the M3 "curtain"? Well, let's not offend with a litany of indecencies.

Mr Reagan should have known better, though (for the sake of his many fans here) it might be noted that by 1987 he may not have been in full control of his faculties, or even (many suggested at the time) of his presidency. I do not wish to blame the authorship of the PPT order on any person, but rather to suggest that fresh look at the precise historical details of its genesis are now warranted. To be an equal-party-offender, who today belives the 1913 act was the brainchild of Woodrow Wilson? Exactly so! Thus, who REALLY instigated the PPT?

Well, who cares now, cest fait accompli, quite transmogrified from any original intent, and neither party will kill it.

melda laureIf it aint broke, dont bomb it.#1463748/5/06; 01:27:06

Meum Culpum, I thought you were trying sarcasm, sir GF, as it did seem hairbrained on the face of it.

Given the garbage cheerleading on Fox, and the rabid hissing and booing from, well, almost everywhere else, it is hard to find any cogent analysis of what our president is trying to achieve. It is hard to find genuinely fundamental strategic facts.

Clearly the administration has long term plans (bipartisan plans even) and given the animosities of the region, the use of limited force was part of the strategy (and for other reasons). Unfortunately, in the melee of flying rotten tomatoes it has become a total fog, apart from some of the associated jockying between the US-Russia-China-Iran. In this discussion, afghanistan has fallen off the chessboard! These are the facts, few, and unchanged since last year:

Oil has become a strategic issue.
The war will continue, with slow progress and great expense.

I propose that the number of very angry Muslims does not have a particularly critical effect on the dollar, gold, or oil, as they do not produce dollars (the Fed does that) nor gold (Russia, SA, Canada, etc.) nor even much oil.

That bears repeating: Angry Muslims do not produce oil. To be sure, there are many of them in Saudi, not the least because they hate their own government, which is nominally pro-western. In the case of Iran, there is only one man who matters, (and I doubt that he obeys public opinion). Iraq is already shut down. That leaves Nigeria, also partially shut down. Can anyone name any other oil producing nation on the verge of political chaos?

Exactly so. From any state well controled by its authoritarian order, there is no need to fear an oil disruption until it happens by decree. Such actions are done with much more circumspection than the acts of a mob. Oil will flow. And it flows better from Tehran than from Basra at this time, (I would guess).

I doubt an embargo is comming just yet, (MK's comment to the contrary). Fear not the Iranian President, fear rather the day when his motorcade is pelted with stones and tomatoes as is done in iraq.

melda laureKnowns and Unknowns, it is so easy to get distracted.#1463758/5/06; 02:22:43

Enough already! Good night!

Oil will be strategic even after the dollar implodes

Even should the euro take the reins, credit derivatives and peak oil remain an issue.

For the dollar, gold is a mortal threat, for the euro, it is a strategic threat.

The border security issues Israel faces are in south Lebannon, Gaza and WB. The strategic issues are future Iranian Nukes and the future of US support (and we know what threatens the US).

The credit monster is firmly in the hands of the world banking fraternity. They will kill it when it pleases them. My opinion (worth 2 turkish lira) is that Mr Buffet is wrong, these weapons of mass financial destruction are in the hands of prudent parties, not cowboys. A kinder gentler fascism if you like.

These are the knowns.

The unknowns are the exact dynamics of global warming, the slope of the peak oil curve, the topology of the peak oil, vs price space (a multi-dimensional lamina, multi-variable price function) and the future of free energy. I would expect to suffer much "operations research" as those dynamics are tested in the same way that oil siesmometry is practiced.

I do not wish to label anyone, (everyone applies their own labels, thus my opinions are worth little). The present obsession of the west with "islamofascism" or whatever the label of the day, is probably over done. In regards to dollars and gold, the dancing mobs are as impotent as the ranting gold bugs. At some point, it will be a discussion regarding gold, water and food. Stocks, bonds, credit and so forth are only a means to an end. Gold is imperishable and compact.

BTW: If it is food you want, then the major sources are the nile and the dipotami. The Litani has been mentioned, but this is needlessly inflamatory, as we have no conclusive data at present.

USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips...#1463768/5/06; 07:44:21">gold -- a global calling card
Goldilox"Knowns" - Resource Wars#1463778/5/06; 08:12:56

@melda laure,

Add the Litani River to "knowns" of the Israel-Lebanon subset of the "Resource Wars". As Puplava has warned us for a number of years, water is the "next oil". Israel is in dire need of additional water, and annexation is the only opportunity to increase its sources.

The Golan (Syrian Heights) district, spoils of the Six Day War, now provides 30% of Israel's current water resources.

If and when any "withdrawal" is announced, rest assured that control of the Litani head waters will lie in Israeli hands.

Mr. GoldfingerWhite Hills (8/5/06; 00:03:36MT - msg#: 146370)#1463788/5/06; 08:25:03

What's your take on the situation?
The political situation as it influences the USD has a great impact and POG. There are many other influences on POG such as the density of sun spots, etc. but we won't get into that just yet.

GoldiloxSaudi Arabia's Oil a Huge Question#1463798/5/06; 08:27:05


From the Saudi Arabian sands pour more than 9 million barrels of crude oil each day, more than 10 percent of the world's production pumped from what is believed to be the largest pool of recoverable crude on Earth.

For three decades, it has been Saudi Arabian oil that poured into the market to dampen rapidly rising prices and Saudi cutbacks that pushed prices back up when they were abnormally low.

The Saudis say they are still committed to affordable, stable petroleum. But prices have roughly tripled in four years despite periodic Saudi announcements of plans to pump up production.

Control, it seems, has slipped away.
So when the Saudis a few weeks ago suddenly reversed field and announced a production cut, some analysts scratched their heads and wondered if, at long last, Saudi Arabian oil production has peaked. If it has, the effect is potentially huge on oil markets and the price of gasoline at the pump.

"When the price is high, that's when you want to take out your oil and sell it," said economist Ujjayant Chakravorty of the University of Central Florida. "I am wondering if they have some production issues."

In the past, the Saudis have repeatedly passed up the chance to maximize short-term profits. Instead, they have seen high prices as a threat to global economies and an incentive for development of alternative energies that would threaten their cash cow.

When prices have been high, they have pumped more.
"If your concern were energy market stability and not your income level, you'd put more oil out in the market," said Amy M. Jaffe, energy fellow at Rice University's Baker Institute. "Why do they see something different now? It doesn't make sense to me."

Boost production capacity to 12.5 million barrels per day by 2009.
9.6 million barrels a day, mid-2005.
259 billion barrels. [contested -AF]
Ghawar pumps 4 or 5 million barrels per day; estimated reserves between 61 billion and 131 billion barrels.
Sources: Rigzone, U.S. Energy Information Administration, Simmons and Co., Oil & Gas Journal
Not anymore.


More western oil analysts are jumping on the bandwagon of suspecting a Ghawar decline.

GoldiloxCommentary on Saudi oil#1463808/5/06; 08:36:14


My source, a highly respected oil industry consultant, goes on to advise me that "If true, it is not unexpected, and it means that the two largest producing fields in the world are crashing. BTW, the Saudi stock market crashed earlier this year because of heavy insider selling by the Saudi royal family. Ghawar + Cantarell crashing means explosive increases in oil prices."

So, if you look at the prospect of $200 oil, the Chinese cutting supply deals with Iran, and the Russians buying them nuclear development materials, it means that Iran (which will be putting out about 5% of the entire world's energy supplies as Cantarell and Ghawar production collapses will become an even more strategic asset. The clock is running on an energy-driven die-off and the neocons and a lot of others know the hour is late and, as energy banker Matthews Simmons has said so many times, the West doesn't have a "Plan B."

Bottom line: If the water-injection to Ghawar is causing it's sudden death right now (as leading researchers like Chip Haynes have been warning of since 2001) then the US is quickly getting into a corner and instead of using what we have lots of (brains) and anticipating the worst case (like a crash alternative energy program) we're trying to take the military solution, ignoring the fact that such tactics use tons of energy and wreck the planet along the way.


George Ure's take on the ramifications of Saudi production decline. I would tend to agree that a "Manhattan Project" level effort in the energy sector is critically more important than the admin's paltry $10M investment in alt energy research.

Hmmm. . . $10M vs. $450B in Iraq. I wonder which alternative the admin is "banking" on?

Max RabbitzGhawar #1463818/5/06; 09:38:30

I've heard that there is an oil field larger than Ghawar, under Ghawar in older Permian rocks and capped with shale. This from a relative, a geologist with a service company involved with analysis of drill samples. FWIW. Should radical Islam take over this region, there may be no option but war. It's past time to drastically cut our use of oil.
Henribetween the buttons#1463828/5/06; 10:13:19

In perusing the news of late, I can't help but notice distinct departures from the reporting the last time rockets fell on Israel. In the past, there was no doubt as to the source of armaments used against Israel. They were definitively Soviet manufactured SCUD variety.

Why do we see no specific information on the source/manufacture of these Hezbollah rockets. We are led to believe they are ultimately from Iran which is rumored to be the main weapons/financial supporter of the Hezbollah political faction.

How is it possible for these rockets to be supplied by Iran? When I look at the map, the supposed supply line runs directly through US occupied Iraq. Are we to believe that a thousand missles somehow are transported through the same border control points that won't even allow passage of an Italian diplomat? If they are not, would'nt the Hezbollah be running out of rockets to fire at Israel soon?

Or perhaps they were sent by ship into Beirut, Lebanon all the way around the world or south of South Africa and through the straights of Gibraltar undetected? Maybe they are all the missing Iraqi rockets that supposedly disappeared into Syria from Iraq in the early days of the latest invasion (Oh wait, that is such a strong term, intervention is so much more suitable)? If so would they not also be of the SCUD variety? So what kind of rockets are these anyway? Are we to believe that it is not known what type of weaponry this is?

Why would Israel and Hezbollah stop their hostilities just because a UN committee drew up a plan for it? Do Hezbollah or Israel even recognize the authority of a UN.
I suspect the answer is like always, only when there is something to be gained. Will the US threaten to withold financial support to Israel if they do not comply? Doubtful at best.

Perhaps they do come from Iran. If so, and the US is concerned about Iran lobbing its missles at oil tankers passing through the straits of Hormuz, then every missle fired at Israel is one less fired at an oil tanker. Perhaps this will go on fo a very long time.

The price of oil headed for $200/barrel?

And the Price of gold? It is already priceless.

White HillsMr. Goldfinger#1463838/5/06; 14:47:05

There is no way we can discuss the war on terror, especially since 9/11, without bringing politics and religion into the mix. Surely all these things are affecting the USD and the POG, but it is difficult to debate these matters because it seems that everyone has his or her own preconceived positions and are all unwilling to consider that anyone else's point of view has any validity. It would be interesting to have this discussion but this forum has decided, and rightly so, that personal, political, and religious opinions are out-of-bounds. White Hills
FlatlinerOdds and ends of a week in history#1463848/5/06; 16:28:07

@Knallgold msg#: 146231 – It's interesting to see this call to action of not using the US dollar, but rather other currencies, in order to put pressure on the US policy (in whatever form it takes). I see the intent as positive, but the advice as misleading. In order to place pressure on how the US policy is handled around the world, one should reallocate savings into gold AND treat it as an international currency. Gold is an asset rather then a debt, thus once the transaction is complete, you have settled in full.

On this topic, Sir Goldilox's message #146242 seems to be in agreement with my point of view.

@Gold Finger's message 146261. Hum… Power hedgers and gold security. I suspect that you might already have found your security through the act of buying physical gold, but I would like to add my couple cents here just for grins. My observations of the different markets lead me to believe that speculation demand in the paper markets is countered by paper supply liquidity. Looking at this backwards, if a paper seller comes to market a paper buyer will want to hold the contract. As long as there is a huge demand for paper contracts, the price is balanced at or just above manufacturing levels for metal. Thus, if the hedge funds buy the correct paper, balance can be maintained with regards to metal price.

At this point (in my understanding), I don't really see this as a bad thing. Let those that manage keep on doing so and what we'll see is that the physical demand will require that gold be mined from the ground while inflation is climbing all around us. As inflation (of the currency supply) drives up prices, the relative price of gold will go up. If not, it will not come out of the ground. On top of that, as more people loose confidence in paper, demand for hard assets will continue to increase. Time is on the physical gold holders side.

Smeagol (msg 146265), good to see you again. Your dual perspective is unique, but your expressed thought is not the first thought that comes to me. If you remember, the precious held in Iraq was in hoards. That is easy for the taking. What we read about Iran is just the opposite. If precious is dispersed amongst the people, it walks. If the people hold enough of it, losing a house is not the end of the world because what you have in your pocket will buy you another one in safer lands. We should watch this development closely for it may become more widespread – learn from others mistakes/good fortune.

@MK message 146269 – yes, but only is security is lost. I look at it this way, you can sell guns to everyone, but if there are no bullets the guns are less then effective.

@MK message 146304, strong dollar vrs currency values. I would love to understand this concept fully, but it has been my understanding that the Strong Dollar policy relates to commodities not currency. Thus Paulson's statement would say that it's in the best interest of the US to continue to hold down commodity prices relative to the US Dollar and then let the US Dollar value be determined in the open market against all other currencies. I may be naive, but I read in this message that the US has no other alternative then to continue fighting for reserve currency standard at all costs. Without a strong dollar, the world will turn to gold. … Ah, TownCrier's message #146320 clearly addresses what I believe is the heart of the matter.

@Waverider's message #146334 – why would Russia trade oil for Euro's when they can trade oil for Rubles?

osa104cFREEDOM >>>> GOLD coupled with KNOWLEDGE#1463858/5/06; 16:42:04

I'm of the opinion the war on TERROR (war on>>>>>DRUGS, inflation, welfare, genocide, food depravation……..scandals, crisis's, disasters, loss of liberty, CONSTITUTION revisionists, ect at infinitum)…….is a neo economic issue CLOAKED in religion, MASKED by political marauding, eleven ring circus conductors.

At the very least, the NEVER ENDING, SUPPOSED war on "terror" will ultimately label many fine FREE, non forfeiting "AMERICANS" as TREASON EST's ……….Correct founding fathers??????…………HELLO STALIN……………AMF

Clink!Will all paper burn - or just disappear ?#1463868/5/06; 19:08:02

There are two distinct camps in the goldbug camp as to what will happen on the Comex and other futures markets when the real physical gold runs out.

On one hand we have the separation of paper and physical as told by Another/FOA such that the price of paper will fall, while physical becomes virtually unobtainable. When it is traded again, It will be at a dollar price many times what it is now (or the dollar will only be worth a small fraction of its present value, depending on your point of reference)and paper contracts will be worthless.

On the other is the "orderly market" approach, where the paper contracts will increase their (paper) value, but will be limited to cash liquidation in a giant short squeeze.

It occurs to me that there might be a third path somewhat between the two, which may be playing out at the moment in the Comex silver market. Here, the registered stock has been steadily eroding for some months now (as reported by Midas), and the physical deliveries are up. If this continues, we should see a diminution of the open interest as there will be fewer shorts willing to sell a contract knowing that there is a growing risk of having to deliver real metal. The futures market would morph into a physical one - freesilver anyone ? If this happened, gold wouldn't be far behind.

The fly in the ointment is what would happen to all the derivative sewage ? Could it be that the gold would continue to flow, but the explosion would be in the derivatives, whose effective value would go to zero. This would be far easier for the banks to contain - remember Refco ?

OK. Now shoot me down in flames !


The Invisible Handblahblahblah#1463878/5/06; 20:33:18,,1838081,00.html

Fed admits US recession on cards

Heather Stewart, economics correspondent
Sunday August 6, 2006
The Observer

The United States faces almost a 40 per cent chance of slipping into recession in the next 12 months, according to the Federal Reserve's own market model.
After official payroll figures released on Friday showed that the economy created fewer jobs than expected last month, Wall Street began predicting Bernanke would halt the Fed's rate-hiking campaign this week. But some economists believe the central bank has already gone too far.
Predictions of a US slowdown came as analysts warned that the Bank of England's surprise rate increase on Thursday will cramp retail spending and wobble the vulnerable housing market - especially if consumers believe there are more rises to come. 'I wouldn't dismiss the impact of this; people have been lulled into thinking that rates don't move, and there will now be a period of reassessment,' said Jonathan Loynes, chief European economist at Capital Economics.

melda laureWorking Group on Financial Markets.#1463888/5/06; 23:16:03

EO 12631, (aka the PPT order)

melda laurePress Release from March 18, 1988 on the same.#1463898/5/06; 23:27:27

Interesting tidbits to read what the press was fed on that day regarding the issue.


March 18, 1988

In view of the extraordinary events in the financial markets in 1987 and the findings of the numerous market studies, including studies by Federal agencies, self-regulatory organizations, and the President's Task Force on Market Mechanisms, it is clear that further, closely coordinated work needs to be done. Despite our financial system's notable success in withstanding the shock of those events, we need to ensure that the public is protected by assuring financial integrity of the markets during periods of significant price changes.


One wonders who did the "numerous market studies", and which Federal Agencies, etc... With protection like this, who needs free markets? Mr Fitzwater mentioned no names.

melda laureVarious choices.#1463908/6/06; 00:11:07

Just a thought: if housing were to slump, the domestic demand for copper would ease up. Ditto for public works road building and steel and concrete.

There are numerous EO's regarding commodities use during war time. I am not sure that a public proclamation is actually required. Such things could be activated quietly. Unlike WWII when domestic consumption was stopped to allow military deployment, here domestic consumption would be managed downwards to save the markets: a recession in our "lifestyles" while paper asset prices remain high.

I have given thought to that manhattan project crash program, sir 'Lox. There certainly is a great deal of black budget money in the sysetem. Perhaps a severe lack of civilian motor fuel is part of the "containment plan"? All the while, the military maintains its mobility?

Something tells me that "da boyz" aren't that smart. Our only hope is that the backside of Peak Oil is not too steep initially.

Sir FL, how does the rise in the price of energy impact the paper price containment as ore quality declines and energy costs rise? Are there other discontinuities present? As Bakhtiari suggests, could there come a time when nitrate explosives are a trade off to nitrate fertilizers in south african agriculture? SA mines use great quantities of coal derived electricity, whereas Barrick's surface mining uses large quantities of diesel fired earth movers. Rather than "costs" it is a case of managing the price of gold to be just slightly higher than the energy price of production: it may not be a free variable for much longer, but wholly dependent on out of control energy markets.

Declining ore reserves may be irrelevant here. They will be left underwater.

I wonder, more than fertilizer, what is the point at which south africa "revalues" its coal, to such an extent that its gold mines are "unprofitable"? I guess that it is probably over the dead bodies of their anglo-alliance bankers. Though from a strategic standpoint, south africa is one of the few pro-western footholds in the continent.

Tom Dyson: Africa, the continent of the future. (yah, what the boojers said back in 1650.) If at first you dont succeed...

TopazBonds, Gold etc.#1463918/6/06; 01:09:20

Bonds look a little more committed this time through as all maturities are now below the 3mo.

Will the Fed try to buck the trend and stand another hike?
Sir Al wouldn't've imo.

Comex Gold for Aug looks to be running on vapor here whereas Ag popped up with a nice little off-month del'y friday propelling her upward.
I recall some time ago calling A$ Au @ $900 and A$ Ag at $500 ...Ag now is $514 and Au is $841.
Quite the little out-performer is Aggie!

The Invisible HandProposal to manage Chinese Forex reserves #1463928/6/06; 01:27:41

Here's a two part article by a Bangkok-based independent policy and investment researcher, Stuart Larkin, under the title "Managing China's Forex reserves". The introduction to Part I, says that Larkin writes on the appropriate level for China's increasing foreign exchange reserves which will soon reach US$1 trillion, most of it invested in US Treasury bonds. The introduction to Part 2, which is titled "Single entity to manage funds", says that Larkin proposes an investment policy for the National Development Fund tailored to contribute to meeting China's national development objectives.

PART 1 link
Once foreign exchange reserves have satisfied the needs of imports, fluidity of capital and security, the surplus should be transferred to a National Development Fund (NDF), where greater attention can be paid to investment returns and national development.
Promoting the yuan as an international currency is not presently feasible since the fragility of the banking system precludes opening up the capital account of the balance of payments, a precondition for a flexible exchange rate system. (China describes its exchange rate system as a "managed float" but yuan behaviour suggests a de facto fixed exchange rate pegged to the dollar.)
Some Chinese economists are calling for an increase in the country's gold reserves, which have changed little since 2002, at 600 tons. They argue that gold reserves need to be quadrupled to 2,500 tons to their historic proportion of 3%-6% of total foreign reserves.
Perhaps gold's rightful proportion would be restored if reserves were drastically cut to establish a NDF dedicated to raising investment returns and promoting national economic development.
It should be remembered that gold, like stockpiles of other commodities, has no yield and that there are costs related to storage, security and insurance to be borne. And what are the prospects for capital gains when buying at a 25-year high?

The NDF should be managed by a new financial institution that would become the world's largest fund management company. For reasons of management expertise, effectiveness of regulation and international acceptability, this institution would be in the private sector. Its establishment will result from Chinese entrepreneurs pursuing a legitimate business opportunity, using their preferential access to China's top policy decision makers to convince them of the project's merits.
Thus, the NDF shall help to meet national economic objectives through contributing to the development of the Chinese corporate sector, in which so much of China's future prosperity and stability hinges.


What seems to be proposed is that after the foreign exchange reserves have satisfied the needs of imports, fluidity of capital and security, the surplus should be transferred to a National Development Fund (NDF). The yuan should not be promoted as an international currency and gold should not be part of the Forex reserves.
Instead the reserves should be managed. What's the purpose of Forex reserves again?

Here's what happened to China's neighbour, India
Forex reserves is a term used to refer to foreign exchange reserves in India. They are counted in US dollars. India's "forex reserves" recently passed the 100 billion US$ mark. [1] India has built up this reserve after an unpleasant incident in the early 1990s, when the country's gold reserves had to be pledged because of a balance of payments crisis. The current reserves are more than 130 billion US$.

Back to China's Forex reserves.

Larkin is based in Bangkok and like the Thai government, he is pro-US dollar.

He tries to guess why China continues to hold disproportionate dollar reserves.

The Chinese dollar reserves do not follow the rules of the dollar-IMFS (dollar-international monetary and financial system).

The author does not wonder why central planning of the Chinese authorities "continues" to deviate from these rules.

Is that because the wonder could result in some dramatic answers?

He continues to invoke the "mercantilism" of the Chinese/Asians. (Remember that Singapore is a Chinese enclave within Malaysia).

He wants to force exuberantly growing China to help the stagflatory west out of its structural debacle

We do not know who are the Chinese or do we?

U.S., China energy cooperation serves both interests: official
The United States and China face similar energy challenges and their cooperation will serve interests of both countries, a senior U.S. official said Friday.

Production begin at Chunxiao gas field
CNOOC has said gas production had begun from an oil and gas field in the East China Sea, a territory that is the focus of a drawn-out dispute with Japan.

The Invisible HandImbalances? What imbalances?#1463938/6/06; 01:59:47,,8209-2300386,00.html
Nobody knows what is going to happen to the price of oil. But there are certainly those in the industry who think that the current high price for natural gas has been inflated by anxieties about supply shortages this winter, which would be eased if new pipelines are installed on schedule.
We hear much about global imbalances and the problem they pose for the world. In the popular mind these imbalances are essentially about trade between America and China.
America runs a huge deficit and China runs a huge surplus.
The popular view is right about the bare facts but the perspective is wrong. As our main chart shows, last year Opec ran a larger surplus than the whole of east Asia except Japan.
And once you add in two large non-Opec oil producers, Russia and Norway, the oil producers' surplus was bigger than the whole of Asia's including Japan]
These enormous surpluses are having a major impact on the world economy.
Essentially, income is being transferred from the oil consumers to the oil producers. Because the oil consumers tend to spend their income whereas the oil producers do not, this transfer potentially has a depressing effect on world economic activity.
What would happen if the oil producers did manage to spend their surpluses?


Were we not told Another story about oil producers spending their surpluses? (THOUGHTS!)
Foundational Gold Trail Commentary
The Inside Story on the Gold-for-Oil Deal that could Rock the World's Financial Centers

The Invisible HandPolitical imbalances?#1463948/6/06; 02:48:05,,1838002,00.html

Gazprom's huge Venezuela gas deal alarms US

Conal Walsh
Sunday August 6, 2006
The Observer

Gazprom, Russia's state-controlled gas company, is risking a diplomatic row with the United States over a mooted multibillion-dollar pipeline investment in Venezuela.
The Russian gas giant is close to a deal on the project, according to Venezuela's firebrand President, Hugo Chavez, who has led opposition to US influence in Latin America.
News of the possible tie-up follows Gazprom's recently declared interest in investing in Bolivia, another regional enemy of the US, and is the latest sign of Moscow's deteriorating relationship with Washington.
It comes after the Russian President, Vladimir Putin, failed at the G8 summit in St Petersburg in July to secure American support for its entry to the World Trade Organisation
The US and Russia have also disagreed over human rights and Iran, and the prospect of a state-backed Russian company entering the western hemisphere is likely to jangle many nerves in Washington.

The Invisible HandOil embargo - the Iran, Venezuela, Russia axis#1463958/6/06; 04:09:06
Venezuela's U.N. ambassador tells NewsMax that President Hugo Chavez will not use oil exports as a weapon against the Bush White House for support of Israel's confrontation with Hezbollah.
The ambassador also told NewsMax that despite "sympathies" for Hezbollah, the Venezuelan government has no intention to provide any suppport (financial or political) to the Lebanese terrorist group.
LONDON -(Dow Jones)- Saudi Arabia has ruled out using oil as a weapon if the conflict between Israel and Lebanon escalates, Saudi Foreign Minister Prince Saud al-Faisal said, the official Saudi Press Agency reported early Thursday.

Now read this carefully:
Last Updated: Sunday, 6 August 2006, 09:30 GMT 10:30 UK
Iran has vowed to pursue its nuclear programme, in its first official response to last week's UN resolution urging it to curb nuclear activities.
Chief nuclear negotiator Ali Larijani said Tehran would continue to develop nuclear energy within the framework of the Non-Proliferation Treaty (NPT).
Further discussions
Mr Larijani also warned that sanctions would hurt the West more, leaving people there shivering from cold during the winter because of higher oil prices.
The UN Security Council passed resolution 1696 by 14 votes to one on 31 July.
It gives Iran until the end of August to suspend uranium enrichment and open its nuclear programme to international inspections.
If Tehran fails to do so, the council will consider economic sanctions.
But following objections by RUSSIA and China to the specific mention of sanctions, further discussions will have to take place about what further steps to take.


What does this mean?
"Mr Larijani also warned that sanctions would hurt the West more, leaving people there shivering from cold during the winter because of higher oil prices."

Here it is
Mr Larijani has also warned against imposing sanctions on the world's fourth biggest oil exporter.
"If they do, we will react in a way that would be painful for them," he said when asked about what would happen if the UN Security Council passed sanctions.
"They should not think that they can hurt us and that we would stand still without reaction," he added.

Ten BearsTrain Wreck of the Week #1463968/6/06; 11:42:45

By Bob Chapman

Anyone who doesn't believe gold and silver are going much higher is just plain dumb.

Mr. GoldfingerTrain Wreck of the Week #1463978/6/06; 18:07:47

It is the train wreck of the century. Happening now in Lebanon and Iraq. No one will accept paper fiat from these murderers. The price of gold is headed to the moon Alice, to da moon.
Noble1The Ultimate "Hard Currency" = Gold#1463988/6/06; 18:19:33

A "Hard Currency" may be defined AS A CURRENCY IN WHICH INVESTORS HAVE CONFIDENCE, such as that of an economically and politically stable country.

Since Bretton Woods, the United States Dollar has filled that role by being the de-facto world's reserve fiat currency. But even our own illustrious(?) and normally cryptic Alan Greenspan was exceedingly clear in his remarks before the World Bank Conference on Recent Trends in Reserves Management, Washington, D.C. on April 29, 1999 that gold is superior to the USD when he said,

" Arguably, immediately following the dollar's float in 1973, U.S. authorities did not intervene and left it to others to adjust their currencies to ours. We did not sense a need to hold what we perceived to be weaker currencies in reserve because presumably we could always purchase them in the market, when, and if, the need arose. WE HELD SIGNIFICANT RESERVES IN ONLY THAT MEDIUM WE JUDGED A "HARDER" CURRENCY, THAT IS GOLD." (emphasis added)

and reiterated in May, 1999.

"Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted."

While we remain relatively stable geopolitically our economic (fiscal) condition is increasingly being called into question with our burgeoning and unsustainable budget and trade deficits.

This week brings Another trade deficit report. How do you think we will fare?


P.S. I hope that his use of the past tense "HELD" in the first quote represented time and not substance.

MKNoble1#1463998/6/06; 19:12:41

I have never seen that quote before and consider it exceedingly important. I only hope that as the years pass we do not see the Greenspan view as an anomaly.
The Invisible HandSterling heading for $2 barrier#1464008/6/06; 19:21:24

Last Updated: Sunday, 6 August 2006, 14:09 GMT 15:09 UK
The shock rise in UK interest rates last week has sent the pound jumping higher against the dollar and other currencies, a trend that may continue.
Sterling rose more than two cents to $1.91 on Friday, a 15-month high.
Analysts think the pound could near the two-dollar mark in coming months as investors pile into the currency.
Currency traders have been switching their reserves out of the dollar in the belief that the Fed may hold steady, or if it does raise rates again, signal that it will stop there.
If the pound does pass the $2 mark, currency experts believe it will be a reflection of the dollar's weakness across the globe.
China has gigantic reserves of foreign currency, much of which is held in dollars.
Last Updated: Monday, 15 May 2006, 22:27 GMT 23:27 UK
Behind the problems of the dollar lies the huge and growing US trade deficit, and the large Federal budget deficit.
A fall in the greenback could hit Asian countries whose governments hold huge foreign currency reserves in dollars
Now the markets are beginning to take matters into their own hands, by forcing the US dollar down.

Iran threatens to use 'oil weapon' in nuclear standoff
· Energy crisis would leave people 'shivering in cold'
· UN deadline looms for Tehran to accept deal

Simon Tisdall in Tehran
Monday August 7, 2006
The Guardian

Speaking in Tehran, Ali Larijani, the country's chief nuclear negotiator and head of the supreme national security council, said Iran would be reluctant to cut its oil exports. "We do not want to use the oil weapon. It is them who would impose it upon us."

MKNoble1#1464018/6/06; 19:24:01

I also consider the quote about thinking of the gold standard with "nostalgia" as equally important. Of course, we now have a Fed chairman who has formulas running through his head like the window in "A Beautiful Mind." Central banking and currency management is an art not a science. Targeting inflation is akin to targeting sunspot cycles. The answer is here and then it is there. I suspect we go on hold on interest rates next week with consequent results in stocks, bonds and gold. Targeting a phony number is like targeting a phony philosopy. It only gets you in hip deep. Then you have to actually do something. We shall see what he does and that will become the subject of intense analysis as this chapter of financial history unfolds.

Alan Greenspan's retirement, in my view, will mark the end of an era. The deterioration in the MidEast is part and parcel of its end.

MKInvisible Hand#1464028/6/06; 19:37:48

I would have you note that in most instances the door is left open. Saudi Arabia come to the White House with a peace plan. It was rejected. A few days later the Arab children were killed in Qana. They will not be happy about that. To use diplomatic terms, this situation is "fluid." If the United States and Europe are unable to rein in Israel (and that seems unlikely), the moderate Arab states may be forced by their collective citizenries to do something. What alternatives do they have? What weapons at their disposal? What is today may not be what is tomorrow. Even Venezuela's comments are hedged. Check the record.
The Invisible HandOvercooking and then what?#1464038/6/06; 19:48:48,,1838851,00.html

Larry Elliott, economics editor
Monday August 7, 2006
The Guardian

Last week's [surprising decision Bank of England's decision to raise interest rates] was based on more than just habit. Interest rates are going up around the world. The European Central Bank tightened policy on the same day as the MPC [Monetary Policy Committee of the Bank of England]; the People's Bank of China is putting the brakes on the world's fastest growing economy; the Bank of Japan has just ended a long period of zero interest rates designed to tackle deflation; and the Federal Reserve has ratcheted up the cost of money in the United States by a quarter-point at each of its last 17 meetings. The 18th successive increase may come this week, depending on whether the Fed is more concerned about rising inflation or weaker growth.
The fact that the tripling of oil prices has had so little effect on growth may reinforce the feeling among policymakers that they overcooked things by leaving rates low for so long.
The second point is that markets have a naive belief in the infallibility of policymakers. This is ironic, given that the prevailing philosophy among policymakers for 25 years has been in the infallibility of markets, but there we are.
But there is a third difficulty. Assume the markets are right: the tripling of oil prices does have an impact; the Middle East remains in turmoil; central banks have timed to perfection the moment to remove the punchbowl from the party; growth slows everywhere and inflation abates. And then what?

You guessed it.


On Another subject
"Targeting a phony number is like targeting a phony philosopy. It only gets you in hip deep. Then you have to actually do something. "(MK)
"Maybe it hurts so much that I don't even know I'm hurt. But I don't think so . . . I'm not capable of suffering completely. I never have. It goes only down to a certain point and then it stops. As long as there is that untouched point, it's not really pain." (Ayn Rand)

Maybe, the Rand quote fits overcooking, but perhaps it has not the same meaning as Michael's quote. Sorry, if the latter is the case.

Mr. GoldfingerMiddle east, middle America, middle etc.#1464048/6/06; 19:57:05

Look at the destruction. Have you no soul? Karma will enact her revenge. Buy gold, you may as well wipe yer arse wit da USAF.
Mr. GoldfingerUSAF was supposed to be USD#1464058/6/06; 19:59:12

my appologies to the USAF.
TitanRe: Train Wreck#1464068/6/06; 20:09:56

Sir GF wrote earlier today:

"It is the train wreck of the century. Happening now in Lebanon and Iraq. No one will accept paper fiat from these murderers. The price of gold is headed to the moon Alice, to da moon."

Maybe I don't have the big picture, but uf the fiat in these countries is devalued (or worthless), wouldn't they use US dollars gotten from oil sales before gold (keeping the more valuable hard currency in reserve)?

Mr. GoldfingerTitan (8/6/06; 20:09:56MT - msg#: 146406)#1464078/6/06; 20:16:39

Why am I kept under such a close watch here? I have seen others post much the same comments and not be attacked. Why me?
The Invisible HandThe UN deal and the hopes of peace - Let the TRUTH prevail#1464088/6/06; 20:20:25,,2089-2300773,00.html
August 06, 2006

HOPES rose for a peace deal in Lebanon yesterday after the American and French governments reached agreement on a United Nations Security Council resolution.
Last Updated: Sunday, 6 August 2006, 23:18 GMT 00:18 UK

At least 15 people have been killed in a barrage of Hezbollah rocket strikes on northern Israel. Twelve reservist soldiers died in an attack on the town of Kfar Giladi. A number of rockets later landed on the Israeli port of Haifa, killing three people and injuring dozens. Reports said at least one building collapsed.
Meanwhile, the UN is debating a draft resolution on the crisis, demanding Hezbollah halt all attacks and Israel stop all offensive military operations.
The UN draft resolution, agreed after much debate between France and the US, calls for a "full cessation of hostilities". But Syria called the resolution text a "recipe for the continuation of the war" and the Lebanese representative at the UN, Nouhad Mahmoud, said he had submitted an amendment calling for Israeli forces to withdraw from Lebanese territory.


Nay the TRUTH prevail!
Yes, it (either way, the war and/or the oil embargo) will VISIBLY cost many lives now.
But how many lives were INVISIBLY destroyed by the gold-lies and other lies?

Let's paraphrase Henry Hazlitt again. He wrote:
"The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."

Yes, this is very painful, but pain goes only to a certain level, as I quoted Rand in my previous post.

General cleaning after AG, said somebody some posts ago.

Yes, I am angry young( 44?) man!

ToolieBP Shutting Down Large Alaska Oil Field#1464098/6/06; 20:21:12

Snip: ANCHORAGE, Alaska Aug 6, 2006 (AP)— BP Exploration Alaska, Inc. began shutting down the Prudhoe Bay oil field Sunday after discovering unexpectedly severe corrosion and a small spill from a transit pipeline.
Company officials said it would take days to shut down the oil field. Once completed, it's expected to reduce oil field production by 400,000 barrels a day.
"We regret that it is necessary to take this action and we apologize to the nation and the State of Alaska for the adverse impacts it will cause," BP America Chairman and President Bob Malone said in a prepared statement.
(end snip)

MKInvisible Hand#1464108/6/06; 20:23:21

After re-reading my post on the possbility of an oil embargo, I fear that you may take it as a criticism. It is not meant to be. I simply want to make the point that what some might say publicly may bely what is going on behind the scenes. Sometimes my posts come off a little harsher than they are intended. I think it is important to note that most of the statements on a possible embargo were hedged. . .
Mr. GoldfingerTitan (8/6/06; 20:09:56MT - msg#: 146406)#1464118/6/06; 20:32:53

ANCHORAGE, Alaska - Half the oil production on Alaska's North Slope was being shut down Sunday after BP Exploration Alaska, Inc. discovered severe corrosion in a Prudhoe Bay oil transit line.
Noble1Sir MK#1464128/6/06; 20:49:49

The speech is short and worthy of a read by all.


ToolieDubai taking control of offshore oil#1464138/6/06; 20:51:02

Snip: AUG. 6 6:54 P.M. ET The government of Dubai will assume control of its offshore oilfield operations next year under a deal announced Sunday.
ConocoPhillips said its Middle East unit Dubai Petroleum Co. will cede control of the fields to the government's Dubai Petroleum Establishment effective April 2, 2007. The state will then be in charge of all offshore oil and natural gas production.

"DPC would like to thank the government of Dubai for the unique opportunity we have had to be involved in the growth and success that Dubai has experienced over the last 40 years", said Bill Arnold, president, Dubai Petroleum Co. "DPC will do its part to successfully facilitate the handover of the operations to the government."

"This relationship has served Dubai well over the years and we are grateful to ConocoPhillips, Total, Repsol YPF, RWE Dea and Wintershall for the role they have played in building the new Dubai," said Abdulla Abdul Karim, Dubai government representative.
"Forty years later, it is clear that production will now far outlast the period of the concession agreement, and all parties agree that it is appropriate to initiate a transition of operatorship to the government at this time and to begin a new era." (end snip)

So do we a have a tit for tat here? We disallow the sale of port operations and Dubai disallows the US operation of their hydrocarbon reserves. OR is it something more? A continuation of a trend to nationalize reserves and their operations, as might be construed by the quote: >>>>"Forty years later, it is clear that production will now far outlast the period of the concession agreement, and all parties agree that it is appropriate to initiate a transition of operatorship to the government at this time and to begin a new era."<<<< Either way, it raises the question; has globalization reached its elastic limit? And can we expect to see nations attempt to enhance their sovereignty by reclaiming assets of REAL value?

The Invisible HandMK#1464148/6/06; 21:22:47

No problem. It's only by criticising each other that the TRUTH can appear or arise.
You criticize me, I criticise you. And so we advance.
Unfortunately (the rest (and thus whole) of his philosophy, which was adopted by Karl Marx, is disgusting), it was Hegel who spoke about thesis, antithesis and synthesis.

Noble1Mr. Goldfinger#1464158/6/06; 21:35:24

I certainly didn't read any kind of attack from Titan. Just a timely reminder of Gresham's Law.
Chris PowellAdd them or cut them off at will: Zeroes are a central bank's best friend#1464168/6/06; 21:57:30

Zimbabwe's Monetary Reforms Disparaged as 'Cosmetic'

By Fanuel Jongwe
Agence France-Presse
Sunday, August 6, 2006

HARARE, Zimbabwe -- Zimbabweans last week flooded banks to hand in old notes after the central bank slashed three zeroes from the local currency, but analysts said the new money would not provide relief from record inflation.

Zimbabwe's Reserve Bank slashed three zeroes from its currency last Monday to help consumers battling with bundles of money on shopping trips which can cost billions and trillions of local dollars.

The change, which ushered in a new currency, is also aimed at compelling individuals and companies to bring in billions of dollars stashed away in safes and combatting a burgeoning black market in currency, central bank chief Gideon Gono said.

Since Monday state television has been screening an advertisement in which an ecstatic housewife hails the currency change saying a loaf of bread which cost 200,000 Zimbabwe dollars "now costs only 200 dollars."

Independent economist John Robertson told AFP: "The currency change is a purely cosmetic exercise which won't overcome the problems facing the country.

"It will only work as far as reducing the volumes of bank notes people will carry but it does not provide solutions to the main problems of inflation, lack of investment, and high unemployment."

Best Doroh, an economist with a leading bank, said the currency change "does not entail an immediate reduction in the prices of goods and services.

"Availability of basic commodities will also not necessarily improve. Inflationary pressures will most likely remain alive in the economy."

Zimbabwe is in the throes of an economic crisis characterised by world-record inflation hovering over 1,000 percent, high unemployment, and chronic shortages of foreign currency and basic goods like fuel and cooking oil.

At least 80 percent of the population lives below the poverty threshold often skipping meals and walking or cycling long distances to work as they battle to stretch income to the next payday.

Economist Eric Bloch lauded fiscal and currency reforms introduced by Gono, however, saying they would reap rewards in the long run.

"The benefits will not come overnight," Bloch said. "But the government must refrain from printing money and financing its projects. The governor also did well to remove subsidies which have contributed greatly to inflation."

Zimbabwe started printing high denomination bearer cheques, a bank note equivalent, following cash shortages which saw banks running out of cash and customers waiting long hours for cash deliveries.

As hyper-inflation struck, millions became "millionaires" overnight carrying wads of notes to buy groceries.

The central bank gave a 21-day ultimatum to hand in the old bearer cheques and imposed thresholds on amounts that can be deposited in banks in an apparent crackdown on hoarders.

Those found with cash exceeding the limit will have to reveal the source or forfeit the money and face prosecution for money laundering.

Shopowners have also been barred from accepting cash payments of more than 100 million Zimbabwe dollars (400 US dollars) for goods and services.

Critics say the currency reforms were a psychological ploy to hoodwink ordinary Zimbabweans into believing prices had gone down.

"The government wants to create the impression that goods are cheaper which is not the case," said a taxi driver in central Harare.

A Harare-based economic think tank, KM Financial Solutions, said unless President Robert Mugabe's government changed its economic policies, the country would keep on playing with the currency.

"One also hopes that the government will be able to fuel the functioning of the economy since most of the fuel was being financed by black market dealers," another analysts said.

The government blames the country's economic woes on sanctions imposed by Western countries four years ago while its critics say the economic downturn is a result of corruption and mismanagement.

FlatlinerEnergy impact the paper price containment#1464178/6/06; 22:16:23

Sir melda laure, you pose good questions that require much thought.

At this point, I must say that your questions have broadened my point of view ever so slightly (in a positive way). It would seem that managing the price of gold just at, or above, the cost of production may not be the goal in the bigger picture of things. I'm now leaning more towards price containment as being directly targeted towards the speculator and demand reduction.

Half my thinking makes reference to the airline industry. As everyone knows, US airlines that took the ‘free’ money provided to them a few years back to hedged their fuel bills are now flying with profit. Those that did not, are having a harder go at it. Also knowing that big miners already understand hedging, one could assume that they would not only sell gold forward, but also buy energy forward too. Thus, if they've played at all, they will have the bulk of their expenses known ahead of time. Profit will most likely still be there for them. It only makes sense that when the miner signs a contract to deliver, they will lock in profits for years to come regardless of the future price of energy – as long as they bought energy contracts to go along with the delivery contract.

The little guy and the explorer may find it hard during these unstable times, thus new discoveries may be harder to come by.

If the real delivery works off contracts that balance out like this, one would have to look twice at the price containment with respect to production costs on miners. Rather, there is something else that might be driving the price containment of gold.

The archives here are full of postings that talk about the utility of physical gold and its importance to big traders. If it really is important for physical gold to flow to the appropriate destinations, then competition at the mine must be kept to a minimum. At least, you wouldn't want everyone and their brother lining up at the door looking for an oz or two. To keep everyone away from the doorstep, one would want to do everything they could to reduce physical demand. We see that today with paper plays that soak up currency and relieve demand for physical.

So where can the price go?

It seems to me that with the strong dollar policy, all those little guys that are ahead of the 8-ball are taking advantage of it converting some small portion into metal. Also, anyone that has kept up on the outstanding claims against gold will find that the claims for physical significantly out pace the current supply. Thus, raising the price will slow physical demand extending the game ever so slightly. But, raising the price too much will trigger speculation from investors that would seize it up ending the game. So, the slow rise in price of gold might be an effort to extend the use of the US Dollar as the world reserve currency. If they go slow enough, the dollar is devalued (against gold) and demand is reduced on a worldly scale while speculation is kept to a minimum.

So, will high energy costs really make a difference with the price of gold? I'm leaning towards – not as much any more. (also, recycling doesn't seem to take a lot of energy.)

Will gold be managed at or just above the cost of mining? That doesn't make sense any more either. It would seem to me that gold must continue to flow but demand from speculators must be reduced – In other words, the average Joe must work harder to get it – thus the price goes up ever so slightly.

Fundamentally, physical demand can be reduced by raising the price – or letting the strong dollar slide just a little bit. The US dollar is not so strong, in gold, any more. If this idea holds, one could only conclude that we'll be seeing higher gold prices until demand comes back inline with supply so that the fiat game can continue to be played.

Running just a little further, if 1% of the world population buys gold and it consumes X tonnes, then doubling the price while keeping interest contained to that same 1% of the population will cut demand in half. Thus, if you are in that 1%, you might find the dollar price of your metal going up specifically to try to reduce demand. But watch out, if the price goes up to fast that 1% will grow creating a condition that will have completely the opposite affect on demand. (that is a good thing for must here in the forum.)

Does anyone have a realistic scenario (not nuclear war, alien invasions or fountain of youth situations) that might show a case for reduced demand for physical gold where the price in US Dollar terms would actually go ... down? I still can't find one.

TopazThe Price of Gold @ FL.#1464188/6/06; 23:41:33

How easily those four words slide off our fingertips eh FL? However, a more complex pair of "variables" it would be hard to muster up.
Firstly the Dollar is numero-uno on the Currency front and it's strength/weakness is subjectively discussed the world over. The relative strength of a Dollar can and is changing in response to miriad influences (some even man-made) that may see it's "strength" increase.
Then Gold, real Gold, Paper Gold, 3mo Gold, 5yr Gold, etf Gold ...etc.
We all have our own personalised idea of what constitutes the "Price" of "Gold" and I'd like to suggest to you that a prolonged fall in the "Price" is simply a matter of circumstance.
The reason main street it so smitten with Gold at present is simply that it's price is going up. Largely they have not faced and examined the prospects of the Dollar and what it's possibilities are as we move forward.
That's a whole other kettle of Fish that can and will influence $/Gold.

Chris PowellNovaGold may be next battlefield in the gold war#1464198/7/06; 00:15:21

Latest GATA dispatch.

To subscribe to GATA's dispatches, go to ...

... and use the "Join Mailing List"
mechanism at the right side of the page.

melda laureHouston, we have a problem.#1464208/7/06; 00:27:42

Sir Flatliner, I wanted to respond to your latest comments, but after writing several responses to the issue I realized that it is a bit more sticky than I realized at first.

I think we are already past peak gold.

That was the only uncomplicated fact that seems to be clear. I do not have the feeling of any analytical foresight here, so I will stop. Yes much thought indeed, it may take some days... Your first analysis is quite good.

Sir MK, a genuine oil crunch could do a lot of Bernanke's dirty work for him, provide political cover, and so on. We have a multicultural assortment of scapegoats ready, we just need a competent pistolero to kill the archduke. It might even give us a gold sale.

TopazStealth price rise.#1464218/7/06; 01:41:26

Mentioned yesterday Ag's out-performing Gold at present, this Chart spots the trend.
It's quite remarkable how Gold is performing this year, clearly not a Commodity a-la Silver ...not a Currency a-la Euro ..then WHAT?
I'd like to suggest Gold is mimicing Dollar ...because it's vying for Reserve Currency Status a final metamorphosis to FreeGold ...meybee!!

Topaztry that one#1464228/7/06; 01:44:31$GOLD:$SILVER&p=D&st=1990-01-01&en=2006-12-23&id=p44105871339

TownCrierMoney in Russian economy grows 6.5% in June#1464238/7/06; 01:47:40

MOSCOW. Aug 7 (Interfax) - The money supply in the Russian economy that can be used as payment (money outside banks and demand deposits in the banking system, not including government deposits) grew a tentative 6.5% in June to 4.479 trillion rubles from 4.205 trillion rubles, according to information on the Russian Central Bank's website.

In January-June this indicator increased 16.1%, from 3.859 trillion rubles at the start of the year.

^---(from url)---^

Whether you take the bother to annualize those or not, those are remarkable figures for the growth of, effectively, the Russian "M1" money supply.

Additionally, the corresponding periodic figures in the marginal component of "M2" rose by 4.2% and 13.8%, respectively.

I hope everyone remembers last weeks missive on the difference between mere money and meaningful wealth.

A review of the current Zimbabwe monetary situation should greatly help to reinforce that important distinction.

Have you chosen your form of savings wisely?


TownCrierGold dagger dating to 3000 BC called 'sensational discovery'#1464248/7/06; 02:21:21

SOFIA, Bulgaria - A golden dagger dating to 3000 BC, plus 500 golden ornaments, have been found in a Thracian tomb in central Bulgaria, an archeologist said yesterday.

^---(from url)---^

Not to overlook the more significant elements of this discovery, but a quick point is in order. The purchasing power -- the wealth component -- of these golden items has survived this triavel through the ages. Can you think of any contractual financial instruments that could have fared as well after so long a trip?

It seems to me that anything that could be such a reliable companion for a journey of five thousands is surely a good companion too for any shorter span of intermediate steps along the way. In other words, gold works as well in your vault during a lifetime as it does in the tomb-to-museum cycle spanning many millennia.

To be sure, certain bullion banking operations have done their duty to try to take the shine off of gold's value in the present age, but that, too, is only but to be likened to a brief covering of dirt -- to be swept aside all in good time like the unearthing of an ancient tomb to reveal unimaginable, priceless wealth.


The Invisible HandHouston, we have Another problem – Boycotts and Viagra#1464258/7/06; 05:14:00

melda laure said in today's msg#: 146420
"I think we are already past peak gold."

We are not only past peak gold.
We are past the necessity to look for means to break the dollar.

Mon, 07 Aug 2006 01:05:42 -0000
[GATA] James Turk: The dollar weakens further

The Invisible Hand (8/6/06; 19:21:24MT - msg#: 146400)
Sterling heading for $2 barrier

Still, the linked article says
Since the Saudis are a party to the dollar conspiracy, a grass roots boycott of the dollar will have the additional benefit of bringing the "oil for dollar" issue to the Arab public square.

After almost 60 years of divide and rule by Israel, the Middle East does not need any embargoes (boycotts) as a temporary solution to their suffering.

Quite to the contrary. Any brutal boycott of the dollar would be counterproductive for the present euro-freegold-transition-process.

As most people cannot see this change which is happening before their eyes,
let alone that they would know that this euro-freegold-transition-process involves a STRUCTURAL CHANGE,
they continue to utter the same nonsense and hatred they always utter when the Middle-East is on fire.

Six decades of dollar hegemony will not be broken by a boycott or an embargo,
but by the construction of an ALTERNATIVE STRUCTURE or alternative concept, freegold.

All forms of senseless (based on military logic) escalation indicate the growing impotency of the standing dollar dominance.

9/11 was the start of this evolutive escalation (impotency of the dollar)

GoldiloxCurrency Strategists: RBC Pares Forecast for Canada #1464268/7/06; 07:50:38


Aug. 7 (Bloomberg) -- RBC Capital Markets Inc. pared its forecast for a decline in the Canadian dollar because the currency will be supported by a demand for commodities.

Canada's dollar has fallen 1.9 percent in the past three months as the country's economy showed signs of weakness and the Bank of Canada halted its streak of seven consecutive quarter- point interest-rate increases in July. The currency reached a 28- year high of 91.44 U.S. cents on May 31.

``The risk is that global, ex-U.S., growth remains surprisingly resilient as do commodity prices,'' Matthew Strauss, senior currency strategist at RBC Capital, said in a phone interview on Aug. 4. ``We're still expecting weakness in the Canadian dollar, but that weakness may come later than we had anticipated.''

Canada's dollar traded at 88.86 U.S. cents at 8:10 a.m. in New York, from 88.71 U.S. cents on Aug. 4. One U.S. dollar buys C$1.1260. Trading is closed today in Toronto for a holiday.

RBC expects the U.S. dollar will gain to C$1.21 in the fourth quarter of 2007 instead of the second quarter next year, which it had predicted in May.

RBC Capital has advised selling the Canadian dollar since September.

Declines Predicted

Morgan Stanley, the world's biggest securities firm by market value, forecasts the currency will drop to 86.20 U.S. cents by the end of the year, and 81.97 U.S. cents in December 2007. Lehman Brothers Holdings Inc., JPMorgan Chase & Co. and Barclays Capital also predict declines.

Commodities comprise 54 percent of Canada's exports and 12 percent of the nation's C$1.09 trillion economy. Canada's oil sands in Alberta contain the largest crude deposits outside the Middle East. The country is the world's No. 2 producer of nickel and zinc and exports copper, gold and other commodities.

Gold and oil gained about 2 percent last week. Gold futures climbed 26 percent this year while oil is up 22 percent from a year ago. Copper was up 3.1 percent for the week. The metal has risen 80 percent this year.

The currency will lose ground as economic growth in the U.S. weakens later this year, cutting demand for Canada's exports, Strauss said. The U.S. is Canada's biggest trading partner and receives more than 80 percent of Canadian exports.

`U.S. Slowdown'

``The looming hit on global growth from a U.S. slowdown may be more muted than in previous business cycles due to strengthening domestic demand in Europe and decreased reliance of Japan on U.S. exports,'' RBC strategists wrote in a report dated Aug. 4.

The U.S. economy grew at a below-forecast 2.5 percent annual rate last quarter, less than half the pace of the prior three months. Consumers cut spending as energy prices climbed, while business investment in new equipment fell for the first time in more than three years.

The Bank of Canada stopped raising interest rates after trimming its forecasts for economic growth to account for a slowdown in exports caused by the stronger currency. The central bank cut estimates for 2007 and 2008 growth by 0.1 percentage point to 2.9 percent and 2.8 percent.

The Bank of Canada on July 11 kept its benchmark interest rate at 4.25 percent, ending a streak of seven consecutive quarter-point increases since September. Canada's central bank next meets to set rates on Sept. 6.

contrarianPotential of a Dollar Boycott#1464278/7/06; 08:45:44

The Invisible Hand--What an amazing article you posted regarding comments by Dr Mahathir Mohamad, the former Prime Minister of Malaysia! A must read for everyone!

It would not surprise me if, today, in the age of instantaneous information propagation, this idea gains traction and turns into a grass roots movement outside of the US. That you can't boycott US products as they're mostly no longer made in the US, etc.

Also discusses the media blackout in the US regarding the mideast war, supporting the notion that TPTB present the circumstances in a lopsided way (it's really an no holds barred invasion, not an "entering" of the country, involving wholesale destruction of civilian infrastructure, not a tit for tat, eye for an eye, but almost complete destruction.)

And of course you know what happens to gold if dollar is boycotted.

Look at link for how effectively the IDF has "entered" the democratic country of Lebanon.

contrarianAlaska Pipeline Shutdown, The Iron Triangle, etc.#1464288/7/06; 09:40:06

Lots of good stuff at Urban Survival today.
TownCrierFlatliner, msg#: 146417#1464298/7/06; 12:54:07

Thanks for the excellent synopsis. I hope others take a moment to appreciate it as much as I did.


Chris PowellBuffett's timing was off in dollar strategy#1464308/7/06; 15:19:50

And people complain that Bill Murphy
is always bullish on gold and silver!

* * *

By George Stein and Josh P. Hamilton
Bloomberg News Service
via International Herald Tribune, Paris
Monday, August 7, 2006

The billionaire investor Warren Buffett, stung by $955 million in losses from foreign-currency investments in 2005, cut his bet against the U.S. dollar this year, just before its steepest decline in 18 months.

Berkshire Hathaway, his insurance and investment company based in Omaha, Nebraska, had $5.4 billion in foreign-currency forward contracts at the end of March, down from as much as $21.8 billion in 2005, according to the company's earnings statements released last week. The U.S. Dollar Index, which is used to measure the dollar's value against six major currencies, fell 5.1 percent in the second quarter.

"It was the wrong timing," said Samarjit Shankar, director of foreign-exchange global strategy at Mellon Financial, based in Boston. "Even as shrewd an investor as Buffett can miss the timing sometimes."

Buffett, 75, dubbed the world's greatest investor by the biographer Robert Hagstrom, told investors in his annual report in March that he cut the contracts in favor of a new hedge against a declining dollar, buying interests in companies outside the United States.

The $4 billion purchase of an 80 percent stake in the Israeli toolmaker Iscar Metalworking, Buffett's first international acquisition, raised separate concerns as Hezbollah fighters fired rockets in the range of the plant in Tefen, near the Lebanon border.

"With the fighting, there's uncertainty," said Donald Thorpe, an insurance analyst at Fitch Ratings in Chicago. "Those assets are more at risk now."

Berkshire Hathaway reported late Friday that second-quarter profit rose 62 percent as investments benefited from higher U.S. interest rates and the weakening dollar.

Net income climbed to $2.35 billion from $1.45 billion a year earlier, the company said. The company had an $87 million gain on its foreign-currency position after a loss a year earlier. Still, Berkshire cut its currency contracts by $4.2 billion during the quarter to $1.2 billion.

"If he had kept the bet at the same size he had a year ago, he would have made even more, a lot more," said Mohnish Pabrai, a fund manager at Pabrai Investment Funds in Irvine, California. Still, "this is a blow-out quarter."

Iscar, purchased by Berkshire on July 5, was not included in the second- quarter results. The company closed its Tefen plant last month and planned to have employees work nights and weekends when it re-opened to avoid delays in deliveries, the Iscar chairman, Eitan Wertheimer, said last month.

Predicting that the U.S. current account deficit would hurt the dollar, Buffett began using forward contracts as a bet against the currency in 2002.

In the first three years, Berkshire recorded $2.96 billion in gains as the U.S. Dollar Index, which measures the dollar against the euro, yen, Swiss franc, British pound, Canadian dollar and Swedish krona, fell 31 percent. Last year, the index rose 13 percent.

"My views on America's long-term problem in respect to trade imbalances, which I have laid out in previous reports, remain unchanged," Buffett wrote in his annual letter to shareholders in March. "My conviction, however, cost Berkshire $955 million pretax in 2005."

Buffett, who did not respond to requests for comment, told investors that he scaled back his holdings of foreign currencies as U.S. interest rates rose relative to the rest of the world. Unlike changes in the value of stock or bond holdings, accounting rules require that fluctuations in currencies and derivatives be reflected in earnings reports.

"We don't know until well after the fact whether he's right or wrong," said Frank Betz, a partner at Carret Zane Capital Management of Warren, New Jersey, referring to Buffett's investment decisions. "Most of the time, he's right. Sometimes he gets a little egg on his face, and he comes out all apologetic."

Berkshire, which relies on insurance for about half the company's profit, reported $132 million more interest and dividend income than had been forecast by Charles Gates, an analyst at Credit Suisse Group in New York, as the insurance units ended the quarter with $37.3 billion in short-term investments equivalent to cash. The U.S. Federal Reserve raised short-term interest rates 2 percentage points to 5.25 percent in the year ended June 30.

Buffett "went into short-term cash a few years ago. Now that's paying off," said Guy Spier, whose hedge fund Aquamarine, based in New York, holds $11 million of Berkshire stock. Shares of Berkshire have risen 3.5 percent this year, compared with a 4.8 percent decline in the KBW
Insurance index and a 6.7 percent increase in the New York Stock Exchange composite index.

Profit from underwriting the policies fell 1.3 percent to $371 million, higher than Gates's $305 million estimate, as a decline at the auto insurer Geico countered gains at the reinsurer General Re, which benefited from there being fewer catastrophe losses outside the United States.

In June, Buffett changed his plan for his own stock holdings, saying that he would begin donating his Berkshire shares to charity now, rather than upon his death. Over time, he will give 85 percent of his stock to the Bill and Melinda Gates Foundation and four family charities, he said.

The stake was valued at about $37 billion at the time of the announcement.

USAGOLD Daily Market ReportPage Update!#1464318/7/06; 15:44:21">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

Gold edges higher ahead of Fed

August 7 (from Reuters) -- COMEX gold futures closed higher Monday, hoisted by rising oil prices, dollar weakness and war in the Middle East that attracted investors to safe havens like the precious metals, dealers said.

Most-active December delivery gold rose $3.50 to end at $659.50 after moving from $655.50 to $663.50.

Prices stuck to a tight trading band, however, in tentative activity before the U.S. Federal Open Market Committee's interest rate-setting meeting on Tuesday. As a result of the subdued tone in the market, the contract turned in an "inside day," holding within the prior session's high and low.

"Caution ahead of tomorrow's FOMC meeting has kept gold confined to another day of sideways range-trade, with the yellow metal and the rest of the complex treading water at the top of their current ranges," said TheBullionDesk analyst James Moore.

Since June 2004, the Fed has raised its key federal funds rate from 1 percent to 5.25 percent.

"The outcome of the meeting and post-rate speech by (U.S. Federal Reserve Chairman Ben Bernanke) should give a clearer indication of short to mid-term direction and could potentially push (spot) gold through the current $655 resistance band to challenge chart resistance around $678," Moore said in a note.

Dennis Gartman, author of The Gartman Letter, who is long-term bullish on gold, said prices were set to resume their climb amid strong energy prices, an increasingly difficult global political situation, and dollar weakness.

"There is resistance (in bullion) ... between $650-$655, however once that resistance is taken out, we'll likely add to our position."

---(see url for full news, 24-hr newswire)---

MKThe latest USAGOLD Newsgroup#1464328/7/06; 16:30:44

What happens when you set up a democracy and the wrong side wins?

Find out what's behind the impending civil war in the Mideast between Shiites and Sunnis, how the Bush doctrine led to unintended consequences in Iraq and why no one knows what to do about it.


Why Credit Suisse says $1200 gold is on the way.

What veteran newsletter writer Harry Schultz is saying about the gold market.

Cementing the pause (tomorrow). Some details.

How Calpers -- California's massive pension plan -- intends to beat the market in the coming years.

And. . .

What Central Bank News has to say about the coming deadline for this installment of the Central Bank Gold Agreement.

"When an asset that previously seemed pretty useless doubles in value, funny
how it changes one's view; somehow, one looks at it more fondly. Even
central bankers are human. Neither the Italians nor Germans have sold any
gold yet, and even the French will probably stop selling next year. They
have all made massive paper profits from their gold stocks."


If you haven't signed up for our widely anticipated, irregular missives (by e-mail), the above provides a glimpse of what your missing. All free of charge. Each article is rated using a five star system. The article on the sectarian split in the Mideast got five stars this time around.

We invite you to join the USAGOLD NewsGroup by going to the sign-up page linked above.

NedFool me once.....#1464338/7/06; 18:06:18

..shame on you Mr. Buffet.

"Berkshire Hathaway, his insurance and investment company based in Omaha, Nebraska, had $5.4 billion in foreign-currency forward contracts at the end of March, down from as much as $21.8 billion in 2005, according to the company's earnings statements released last week."

Weren't "derivatives" the "financial cesspool" or how did Mr. Buffet's friend Charlie express that once?

The Invisible HandThus spake the poodle#1464348/7/06; 19:50:41

Tony Blair spoke his mind to the audience at the World Affairs Council in Los Angeles on August 01, 2006
At best, Blair sounds like a defeated former colonialist visiting the world from his grave. At worst, we just had the opportunity to peep into the mind of a desperate war lord.

Excerpts highlighted by the BBC
We will not win the battle against this global extremism unless we win it at the level of values as much as force
The purpose of the terrorism in Iraq is absolutely simple: carnage, causing sectarian hatred, leading to civil war
It is about hearts and minds, about inspiring people, persuading them, showing them what our values at their best stand for
Our values... represent humanity's progress throughout the ages and at each point we have had to fight for them


Let me first tackle the BBC excerpts.
"To many Islamic nations, freedom is not a tonic, but a toxin; it's regarded not just as something that permits a challenge to faith, but is a challenge to faith by itself.
"To Westerners, the value of concepts like truth, life and liberty remains constant, writ in stone, whether our best efforts successfully earn that value or not. But many Westerners like myself watch events unfold in the Islamic world with the inching realization that the value it places on those concepts remains utterly fluid, seemingly shaped by convenience and circumstance.
"Even reason itself appears subject to sacrifice; some of the most cognitively dissonant images to come out of the controversy are protest signs with messages like, 'Behead those who say Islam is violent'." -- Andrew Steven Harris cont.

excerpts from
Faith and Force: The Destroyers of the Modern World
by Ayn Rand
(A lecture delivered at Yale University on February 17, 1960, at Brooklyn College on April 4, 1960, and at Columbia University on May 5, 1960.
Published as a pamphlet by the Nathaniel Branden Institute in 1967,
and now included as a chapter in the book, Philosophy: Who Needs It )
"There is only one fundamental alternative in the universe: existence or non-existence -- and it pertains to a single class of entities: to living organisms. The existence of inanimate matter is unconditional, the existence of life is not: it depends on a specific course of action. Matter is indestructible, it changes its forms, but it cannot cease to exist. It is only a living organism that faces a constant alternative: the issue of life or death. Life is a process of self-sustaining and self-generated action. If an organism fails in that action, it dies; its chemical elements remain, but its life goes out of existence. It is only the concept of 'Life' that makes the concept of 'Value' possible. It is only to a living entity that things can be good or evil.


The poodle does not know what he is talking about.

(granted, this Invisible Hand should also think over how to apply Objectivism to the present situation in the Middle-East.

"Our values... represent humanity's progress throughout the ages and at each point we have had to fight for them’, says the poodle.

"Throughout the centuries there were men who took first steps down new roads armed with nothing but their own vision. Their goals differed, but they all had this in common: that the step was the first, the road new, the vision unborrowed, and the response they received – hatred", says Rand.)

This New World Order-speech of the poodle must however inspire us to think about the past and future of gold in the monetary/financial power system.

The poodle function of the poodle vis-à-vis EU and EMU is a geo-politic datum which is characteristic of the growing impotency of the dollar colonialism.

With this speech, then poodle has sealed the end of his career.

the poodle wants to be Prime Minister a year from now – or longer – supporters claimed yesterday.
But critics in Labour believe he has become such a political liability – including his unpopular pro-America stance on the Middle East crisis – that he will cost them votes at next May's local elections.

The Invisible HandThe price of gold will NEVER go down again - MTM is a fact#1464358/7/06; 20:04:25

MOSCOW, August 7 (RIA Novosti)
Since January 1 2006, the CBR [Central Bank of Russia} has calculated its gold reserves based on the market rate.


MTM (mark to market) is a fact since January 01, 2006


SNIP from August 2003

In Russia, the Middle East and India, there is an increasing aversion against the dollar and is a search for a replacement under way. The present gold fever in China where individuals are since early 2003 again allowed to possess gold implies that in order to be an economic world power by 2012, China could well accede to this world standard, Freegold. At that moment only physical gold will be traded as the natural vehicle to incorporate one's wealth, the value of paper gold will be reduced to nothing, and the value of the euro will increase quarterly upon the marking to market of its gold reserves.

The ECB will not define the euro like the old gold standard as a certain quantity of gold, but will use it as a free trading financial reserve so that each increase in the price of gold will bring about an increase in the value of the euros reserves and thus an increase in the value of the euro itself. This currency concept is closer to the tenets of libertarianism than a gold standard because of the exchange restrictions which inevitably follow

Let's have a party!

The Invisible HandOil crisis?#1464368/7/06; 20:43:43

Storing Iran's Sorush, Noruz oil costs $243m
LONDON, August 7 (IranMania) - The storage of 15 million barrels of unsold oil in the tankers has cost the nation around $243 million within the past eight months, MNA reported.


Or oil weapon?
Can you spell "embargo"?

The Invisible HandThe Venezuela-Iran-Russia axis#1464378/7/06; 21:10:42

"We have decided to recall our ambassador for consultations due to the unilateral position of the Caracas Government on the Middle East and because Venezuela resolved to get closer to extremist elements in the region, such as the Iranian president, who day and night claims that Israel should disappear," Spokesman Mark Regev told AFP

The Invisible HandAnd then Tony the Poodle went fishing in the Caribbean ...#1464388/7/06; 22:12:33

Published: 08 August 2006
Efforts at the UN to approve a Security Council resolution demanding a suspension of fighting in Lebanon were set back by at least another 24 hours last night after diplomats agreed to listen first hand to objections being raised by foreign ministers of the Arab League
Tony Blair is meanwhile hoping to escape to the Caribbean for his delayed holiday tomorrow leaving Labour MPs growing increasingly angry and frustrated at the UN delays.
The Foreign Secretary, Margaret Beckett, was continuing her summer holiday in a caravan in France last night.

The Invisible HandThe view from Jerusalem#1464398/7/06; 23:03:20

"We have a problem with the leadership in Caracas that hugs the Iranian president who calls for the annihilation of Israel."


A Jewish friendsent me last week a memo calling for the recognition of Israel's right to exist.
All states have come and gone in history.
How long does Israel want to exist? Forever?
Even in my native Belgium, some people call for separatism.
What is all this nonsense?

As I said earlier toDAY in my Viagra msg#: 146425
As most people cannot see this change which is happening before their eyes,
let alone that they would know that this euro-freegold-transition-process involves a structural change,
they continue to utter the same NONSENSE and hatred they always utter when the Middle-East is on fire.

At the end of the DAY we may end up with

A STRUCTURAL change for gold. NO POLITICAL change for Israel.

Let me quote Alicja Rosenbaum, aka Ayn Rand, again:
Reality is that which exists; the unreal does not exist; the unreal is merely the negation of existence which is the content of a human consciousness when it abandons REASON.

Use reason and look at the structural changes.
Stop relying on emotions and nationalism.

Or is the call for annihilation of Israel a trick to continue to hide the euro-freegold-transition-process from the sheeple?

Watch Russia!

The Invisible Hand (8/7/06; 20:04:25MT - msg#: 146435)
The price of gold will NEVER go down again - MTM is a fact

What about the TIMING of the disclosure by RIAN NOVOSTI ( of the MTM-ing since January, that's more than SEVEN MONTHS ago?

GoldiloxBots#1464408/7/06; 23:59:18


I find it interesting that one of the major "predictions" of the Web bots (gathered from information anlyzed before the onset of Lebanon crisis) for the autumn 2006 period is a major change in the global political view of Israel.

Without interjecting any value judgements, it seems to be appearing both in the media and on the Internet.

Another one is that "paper gold" could be outpaced by physical, an idea that has seen some traction here, as well.

I think even Sinclair has mentioned that the relationship between paper gold and physical gold is not acting within its "normal" parameters.

The Invisible HandCondi's "New Middle East" and The End of Partnership#1464418/8/06; 00:32:46

Goldilox finds it interesting that one of the major "predictions" of the Web bots (gathered from information anlyzed before the onset of Lebanon crisis) for the autumn 2006 period is a major change in the global political view of Israel.

Here's the "total" (?) picture of Condi's "New Middle East"
"Things are as they are, and their consequences will be what they will be. Why then should we seek to be deceived?"
Indeed, in Israel, dissent against the blitzkrieg is rising, and the Olmert regime is being challenged and even condemned by courageous Israelis for letting the air force have a free hand to smash Lebanon.
Moving on to Iraq, where the war has lasted as long as our war on Nazi Germany, Gen. John Abizaid is warning that a descent into civil war is now possible, and Bush concedes that, three years and three months after "Mission Accomplished," the situation in Baghdad is "terrible."
LONDON, August 8 (IranMania) - The head of Iran's Revolutionary Guards said the United States and Israel would not survive if they attacked his nation, the IRNA news agency reported.
LONDON, August 8 (IranMania) - US President George W Bush on Monday accused Syria and Iran of fomenting "chaos" in the Middle East, and said both knew exactly what they must do to escape US diplomatic crosshairs, AFP reported
"I gave an order that, if within the coming days the diplomatic process does not reach a conclusion, Israeli forces will carry out the operations necessary to take control of rocket launching sites wherever they are," Israeli Defense Minister Amir Peretz said.
Justice Minister Haim Ramon said Israel could not withdraw before the arrival of an international force. "The moment we leave, Hezbollah will return."
MOSCOW, August 6 (RIA Novosti) - The Iranian ambassador to Moscow transferred Sunday an oral message of Iran's Foreign Minister Manuchehr Mottaki to Russia's First Deputy Foreign Minister Andrei Denisov on the situation in Lebanon

The End of Partnership
The U.S. Department of State has imposed sanctions against state-run companies of Russia, Rosoboronexport and Sukhoi, making clear the absolute dissatisfaction of Washington with the foreign policy of Moscow. The sanctions are the end of the epoch of Russia's-the U.S. strategic partnership that has been declared until recently.

The Invisible HandAre these two stories related?#1464428/8/06; 00:49:18

Last Updated: Tuesday, 8 August 2006, 06:03 GMT 07:03 UK
Oil prices have eased slightly after hitting record highs on Monday, despite uncertainty as to when BP's key Prudhoe oilfield will resume production.
Producers' group Opec has insisted that it has enough spare capacity to meet any shortfall in supplies, but analysts say Prudhoe's shutdown will reduce the "oil cushion" to less than two million barrels a day.

The Invisible Hand (8/7/06; 20:43:43MT - msg#: 146436)
Oil crisis?
Storing Iran's Sorush, Noruz oil costs $243m
LONDON, August 7 (IranMania) - The storage of 15 million barrels of unsold oil in the tankers has cost the nation around $243 million within the past eight months, MNA reported.

The Invisible HandThe Venezuela, Iran, Russia Axis#1464438/8/06; 00:57:22

Venezuelan President Hugo Chávez aims at an alliance with the Russian-Chinese axis, communion with radical Islamism via Iran, expansion of the revolutionary Venezuela-Cuba-Bolivia triad and the establishment of the big homeland.

GoldiloxPolitics makes for "strange bedfellows"#1464448/8/06; 01:28:24

@ TIH,

Lines are being drawn in the sand, as the "Godless Socialists" and "Muslim Fundamentalists" unite against what they perceive as a combined Judeo-Christian Zionist expansionist threat. The energy-hungry West wants their oil, and the thirsty Israelis covet their water.

Things are likely to get worse before they get better, making the "security premium" of PM holdings a rather strong factor.

One thing to watch from an investment standpoint is the media perception (propaganda) that "all is well on the diplomatic front," as it will be a trigger to attack gold quite perniciously, IMHO.

This attack may well be the "final" weak hands shake-out and buying opportunity before we start to see the oft' predicted $100 swings, again just MHO.

The Invisible Handon the diplomatic front #1464458/8/06; 01:59:40


You say:
in Goldilox (8/8/06; 01:28:24MT - msg#: 146444)
One thing to watch from an investment standpoint is the media perception (propaganda) that "all is well on the diplomatic front," as it will be a trigger to attack gold quite perniciously, IMHO.

I quoted:
in The Invisible Hand (8/7/06; 22:12:33MT - msg#: 146438)

Do you mean that tomorrow, "they" will say everything is well?

The Invisible HandIt has pleased our masters#1464468/8/06; 02:53:29

It has pleased our masters to let oil reach almost $80, but our yellow is not allowed to move. Still Ria Novosti disclosed MTM

Euro foreign exchange reference rates
The reference rates are based on the regular daily CONCERTATION PROCEDURE between central banks within and outside the European System of Central Banks, which normally takes place at 2.15 p.m. ECB time (CET).

Concertation like the London Gold Fix.

Free Markets, said you?

NedThe Invisible Hand#1464478/8/06; 04:24:24

Thanks for the news.

Gold to surely reach your magical number !

SundeckTrade in gold sparkles on the back of high prices #1464488/8/06; 04:55:04


Exchange shows that in the first six months, the turnover of gold on the exchange reached 88.058 billion yuan (US$11 billion), up a whopping 78.41 percent in value terms and close to the turnover figure for the whole of 2005.
This represents a volume of 572.57 tons of gold traded on the Shanghai Gold Exchange, up 32.97 percent year on year.
Twenty-two financial institutions, including China's Minsheng Bank, have become institutional members of the Shanghai Gold Exchange this year, bringing the total number of institutional members to 130...

Sundeck: No comment...

The Invisible HandJust a thought …#1464498/8/06; 06:15:28

Is it due to price-fixing Opec that the POO is reacting?
I mean gold is not reacting.

Or is it that oil is absolutely necessary for this civilisation to continue?
Honest money is also a necessary condition to that effect. But are our masters still able to contain the POG? Are they spending or devoting a last ditch effort to save paper? And are the Russians putting freegold batons in the wheels of our masters?

LONDON - Gold prices in Europe were cautiously steady today, supported by dollar weakness ahead of the US Federal Reserve meeting, a sharp rise in oil prices and the conflict in the Middle East.
Gold, ... l und Dollar legen im Zuge der Spannungen im Nahen Osten gleichermaßen zu, heißt es bei der HelabaTrust.

The Invisible HandIs there a difference with paper gold?#1464508/8/06; 06:21:58

MOSCOW, August 8 (RIA Novosti) - Promsvyazbank, a leading Russian commercial bank and the Luxembourg-based branch of Germany's Commerzbank signed Tuesday an agreement on prolonging a gold bullion loan for 12 months until August 2007.

The Invisible HandMaybe then gold will move ...#1464518/8/06; 06:53:15


But the worst will happen only if Iran not only stops deliveries but also blocks the Strait of Hormuz passed by oil tankers from Kuwait, Saudi Arabia and the United Arab Emirates. As more than 15 million barrels of crude are daily shipped via the Hormuz, i.e. nearly 40 fold more than via Trans Alaska, the sharp reduction in deliveries will trigger global recession similar to the one happened in 1980 to 1982 and fuel the prices to $250, according to
The credit ratings agency forecast three scenarios -- with a $250 oil barrel sparking global recession in the worst of them, should Iran close the Strait of Hormuz, a bottleneck in the Gulf region between Iran and Oman by which tankers from Kuwait, Saudi Arabia and the United Arab Emirates transit ( But the most likely scenario, based on a limited conflict, has prices falling from current $75 levels to below $70 by year-end and to $60 by end-2008, which would allow the world economy to keep expanding, with U.S. growth slowing to 2.5 percent in 2007, S&P said.


At $80 oil, our masters can still contain the POG.
We'll see what happens at three times that price.

Golden LionheartThe Invisible Hand........You are quite rude.#1464528/8/06; 08:56:26

@ The Invisible Hand..............I find your constant reference to the Prime Minister of Great Britain as "the poodle" as an insult to the citizens of the UK. Wash your mouth out kind sir!
CamelStrong dollar#1464538/8/06; 10:05:53

While Paulson make strike the posture of a strong dollar ,the general consensus is that it is in this countries interest to devalue , however they want it controlled and orchestrated , rather than a runaway. We are still trying to get the Chinese to let their currency float which would weaken the dollar hence the comments about free markets determining the dollars value.

It wasn't so long ago the dollar held steady at 90 for many months. Now it has dropped to 86 and holding steady ,no doubt by the action of some invisible hand. All these values exist in a dynamic equilibrium with a variety of components and the amounts needed to move the numbers from their equilibrium probably is not too great (although no one seems to know how all this is done )

As for gold the most likely explanation for the spike several months ago were the reported large buybacks of Barricks hedge position during the first quarter . Here we can see how a determined buyer can run the price up , and others join the stampede

Whether China might seek to fill this roll is uncertain , probably even to them. By all reports there is great prosperity in China . They have been the chief beneficiary of the NWO. as they should have been , because until recently they were so poor . Why would they kill the goose that laid the golden egg?

By the way it was the British press that coined the term "poodle" to descibe Blair , because he seemed to trot along after Bush into the Iraq war. Don't get me wrong .It was a good plan. But as with so many of these plans , someone has to die, 30,000- 50,000 Iraqis killed, hundreds of thousands more wounded and billions of dollars damage.

USAGOLD - Centennial Precious Metals, Inc.NewsGroup Alerts...#1464548/8/06; 10:36:55

We invite you to enjoy this latest review of articles from the USAGOLD NewsGroup.

To receive timely notice of featured news and opinion via e-mail, be sure to use the link "Join the USAGOLD NewsGroup" to get in on the action. Best of all, it's FREE!

GoldiloxNo rate increase#1464558/8/06; 12:19:53

While admitting that inflation is still a risk, the FED voted to leave the benchmark rates unchanged.

Not unanimous this time, so it's hard to predict December as a repeat, or call this a "trend change".

DruidBankers Fear World Economic Meltdown#1464568/8/06; 12:22:49

On June 15 we published Gabriel Kolko's essay on the enormous instability of the world'd financial system. In the ensuing weeks Professor Kolko has enlarged his analysis, and here we offer our readers his updated version. AC / JSC

There has been a profound and fundamental change in the world economy over the past decade. The very triumph of financial liberalization and deregulation, one of the keystones of the "Washington consensus" that the U.S. government, International Monetary Fund (IMF), and World Bank have persistently and successfully attempted over the past decades to implement, have also produced a deepening crisis that its advocates scarcely expected.

The global financial structure is today far less transparent than ever. There are many fewer reporting demands imposed on those who operate in it. Financial adventurers are constantly creating new "products" that defy both nation-states and international banks. The IMF's managing director, Rodrigo de Rato, at the end of May 2006 deplored these new risks – risks that the weakness of the U.S. dollar and its mounting trade deficits have magnified greatly.

De Rato's fears reflect the fact that the IMF has been undergoing both structural and intellectual crises. Structurally, its outstanding credit and loans have declined dramatically since 2003, from over $70 billion to a little over $20 billion today, doubling its available resources and leaving it with far less leverage over the economic policies of developing nations – and even a smaller income than its expensive operations require. It is now in deficit. A large part of its problems is due to the doubling in world prices for all commodities since 2003 – especially petroleum, copper, silver, zinc, nickel, and the like – that the developing nations traditionally export. While there will be fluctuations in this upsurge, there is also reason to think it may endure because rapid economic growth in China, India, and elsewhere has created a burgeoning demand that did not exist before – when the balance-of-trade systematically favored the rich nations. The U.S.A. has seen its net foreign asset position fall as Japan, emerging Asia, and oil-exporting nations have become far more powerful over the past decade, and they have increasingly become creditors to the U.S.A. As the U.S. deficits mount with its imports being far greater than its exports, the value of the dollar has been declining – 28 per cent against the euro from 2001 to 2005 alone. Even more, the IMF and World Bank were severely chastened by the 1997-2000 financial meltdowns in East Asia, Russia, and elsewhere, and many of its key leaders lost faith in the anarchic premises, descended from classical laissez-faire economic thought, which guided its policy advice until then. "…{O]ur knowledge of economic growth is extremely incomplete," many in the IMF now admit, and "more humility" on its part is now warranted. The IMF claims that much has been done to prevent the reoccurrence of another crisis similar to that of 1997-98, but the international economy has changed dramatically since then and, as Stephen Roach of MorganStanley has warned, the world "has done little to prepare itself for what could well be the next crisis."

The whole nature of the global financial system has changed radically in ways that have nothing whatsoever to do with "virtuous" national economic policies that follow IMF advice – ways the IMF cannot control. The investment managers of private equity funds and major banks have displaced national banks and international bodies such as the IMF, moving well beyond the existing regulatory structures. In many investment banks, the traders have taken over from traditional bankers because buying and selling shares, bonds, derivatives and the like now generate the greater profits, and taking more and higher risks is now the rule among what was once a fairly conservative branch of finance. They often bet with house money. Low-interest rates have given them and other players throughout the world a mandate to do new things, including a spate of dubious mergers that were once deemed foolhardy. There also fewer legal clauses to protect investors, so that lenders are less likely than ever to compel mismanaged firms to default. Aware that their bets are increasingly risky, hedge funds are making it much more difficult to withdraw money they play with. Traders have "re-intermediated" themselves between the traditional borrowers – both national and individual – and markets, deregulating the world financial structure and making it far more unpredictable and susceptible of crises. They seek to generate high investment returns – which is the key to their compensation – and they take mounting risks to do so.

Druid: Kind of old news for many old timers here at the castle but an excellent read nontheless. Enjoy.

TownCrierFOMC Statement -- no change in rates#1464588/8/06; 12:33:31

August 8, 2006

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.

Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.

Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.

TownCrierThe oldest gold dealer: Bank of Nova Scotia goes against flow...#1464598/8/06; 12:33:44

August 08, 2006 -- At the top of Bank of Nova Scotia's red skyscraper in Toronto, a group of salespeople and traders from the bank's ScotiaMocatta precious-metals unit sit in front of blinking terminals buying and selling gold, silver, platinum and palladium all around the world.

Seventy floors below, an underground vault holds stacks of bullion in safekeeping for clients.

Despite its home in the New World, ScotiaMocatta is the world's oldest gold dealer. The firm traces its history back to 17th-century London, where the Mocatta family set up as a bullion dealer to the Bank of England. The Canadian bank bought the business from a British bank in 1997 and has since steadily expanded its precious-metals operations.

ScotiaMocatta is still one of the biggest players in its ancestral home of London, where the majority of the Western world's gold changes hands. The company is one of the select clearing houses that move an average of US$15.4-billion of gold to settle each day's trades...

Even as one of the biggest dealers in the world, precious metals are a niche business for Bank of Nova Scotia.

The bank's commitment to the business is increasingly rare, as other banks steadily pull out of precious metals, deeming the business too small or too unrelated to the real money makers of retail or investment banking. N.M. Rothschild and Credit Suisse are among the rivals that have left the business altogether or scaled back... [Randy's note: getting out even though, as the article indicated, "the precious metals business has generated record profits four years in a row." For more insight, read on...]

That's provided an opportunity for ScotiaMocatta, which has been an active shopper as other banks shed assets. Mr. Wainstein is currently looking at a proposal from another competitor that wants out.

The outlook for gold is still bullish after its rise beyond US$650 an ounce, Mr. Wainstein says, as there are concerns about a weakening U.S. dollar and rising inflation. A higher price, however, is not necessarily good for business.

^---(from url)---^

The key thing to wrap your mind around is that the "assets" being shed by other banks are things such as gold loans -- effectively an income stream in the form of contracts in which a counterparty has pledged itself to make future payments of gold metal (or optionally money payments of the gold-price equivalent).

The reason some of the other more astute and more risk-averse bullion banks have been dropping out of the business -- like gangbusters in the wake of the original European Central Bank Gold Agreement of September 1999 -- is very much connected with that little insight I've posted as the final comment of my article excerpt: i.e., A higher price, when you're running a gold lending operation, is not necessarily good for business.

The reason is manifold, but paramount among them is that a rising price makes it increasingly difficult for the bank's gold borrowers to make good on the service of their individual gold loans. It is akin to a conventional money-borrower struggling to repay their debts in a deflationary environment.

I take it as a very good omen for the future that Wainstein has indicated that yet another one of ScotiaMocatta's bullion banking competitors wants out.


Gandalf the WhiteMr. Lacker is NOT a "LACKEY" ! <;-)#1464608/8/06; 12:51:08

Voting against was Jeffrey M. Lacker --
TopazSoft spot for the Hard stuff.#1464618/8/06; 15:46:08

I'm as Bullish as the next feller when it comes to the L/T outlook for Gold however ...we seem in for a bit of retracement here as Aug deliveries trickle to a halt.
A demand trough just prior to Sept might offer the last buying opportunity for some time ...iffen you're looking for "positive spin".

TownCrierPeru cenbank tries to tame sol in record forex buy#1464628/8/06; 15:59:44

LIMA, Peru, Aug 8 (Reuters) - Peru's central bank mopped up $231 million in foreign currency on Tuesday, the country's largest ever one-day purchase...

A surge in local demand for soles from mining companies with looming tax bills pushed the currency through a psychological barrier of 3.230 per dollar to 3.226, its highest level since early 1999. The sol has been buoyed by high commodities prices.

"There is a large flow of dollars into soles in the market and the central bank will continue intervening when there is high volatility, (but) not to fix a floor for the currency," central bank director Eduardo Iriarte told local radio.

^---(from url)---^

Do you think the timing of this dollar support is a mere chance coincidence, or do you think it might have anything to do with this bit of news I posted on Friday?


TownCrier (8/4/06; 15:19:16MT - msg#: 146364)
Treasury secretary to attend inauguration of Colombian president
WASHINGTON (AP) - Treasury Secretary Henry Paulson plans to lead a delegation to Colombia on Monday to attend the inauguration of Colombian President Alvaro Uribe...

Paulson also plans to meet with Peruvian President Alan Gracia, who is also expected to attend Uribe's inaugural ceremony...

^---(from url)---^
How well do you understand the foundation of the U.S. Dollar and the Treasury bond?
It shouldn't surprise anyone that, from among the broad Cabinet of luminaries and dignitaries, it was the Secretary of the Treasury who was chosen as the principle represetative of the United States for this particular house call.
The foundation is eroding. Choose gold.

USAGOLD Daily Market ReportPage Update!#1464638/8/06; 16:26:49">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

Gold softens awaiting FOMC decision

August 8 (from DowJones) -- Comex gold and silver futures traded quietly on Tuesday ahead of the Federal Open Market Committee meeting later in the day but settled lower as traders remained cautious.

At the New York Mercantile Exchange, December gold settled down $2.20 at $657.30. The contract drifted between $652.30-$658.80 during the day session while the dollar and euro traded nearly flat.

While a majority of traders and market observers contend that the Fed will likely pause in its rate-tightening cycle on Tuesday, ending its 17 consecutive hikes, other expect one more increase.

At any rate, many precious metals analysts do not expect more than a short-term and possibly subdued reaction from bullion once the decision is made public, said Kitco's analyst John Nadler. "Bullion prices drifted on either side of the $645 mark while market pundits were flipping coins marked hike/pause in their minds."

He added that factors such as the conflict in the Middle East, the "developing civil war in Iraq, the absolute intractability of Iran, and the prospects of $4 per gallon gasoline being just around the corner are certainly posing more of a challenge to asset allocators than what may well be the last in a series of interest rate hikes - that is, if it takes place at all."

---(see url for full news, 24-hr newswire)---

melda laureNatural gas.#1464648/8/06; 17:24:46

Another week of negative gas injection figures? that reminds me of that mel brooks film with the giant spaceship transformer and the vacume cleaner: mega-maid.

"Quick, Lone Star! Target the reversal switch!"

Data should appear here eventually:

Team Spaceball is comming up short.

The Invisible HandIt's official: Blair's poodleship is being denied#1464658/8/06; 19:15:04

Former Israeli prime minister Binyamin Netanyahu has praised Tony Blair's handling of the Middle East crisis. ]
"Mr Blair is doing a great deal. He's standing up for his beliefs - HE IS NOBODY'S PUPPET.
"He genuinely understands what is the correct picture. He is getting attacked from every side. That makes him more of a leader, not less so.
"Leadership is tested in doing the unpopular things - not going with the flow."§ion=weekend&col
It is indeed sad to see a great country that once determined the world's destiny and has remained a source of inspiration to parliamentary democracies and civil rights groups everywhere should submit itself completely to the whims and fancies of the US establishment.

Golden Lionheart,

You are quite naïve.

If you don't like poodle. Call him a Trojan horse. I am at loss to understand how this could be an insult to the "citizens" of the UK.

What percentage of those "citizens" are komrades of Blair and have voted for him?

Due to the poodleship of Blair, Berlusconi, aka Pipo the Clown, and Aznar, aka manager of the Christian Taliban, have got into big problems, not to speak of the innocents of both parties (Lebanon and Israel) who are being killed.

This is what AngloAmerikan kultural

(compare Blair's speech of August 01 in Amerika
The Invisible Hand (8/7/06; 19:50:41MT - msg#: 146434)
Thus spake the poodle

and military imperialism amounts to.

They are instituting a kulture of FEAR.

How dare you hold the "citizens" of Great-Britain and Northern Ireland responsible for this?

On that account, the Russian "citizens" are responsible for this:
The Inflation Sub-Component
July inflation hit 0.7 percent in Russia, worse even than the most pessimistic expectations. The bureaucrats no longer mention the 8.5-percent inflation planned for this year, giving up 9 percent instead. But analysts doubt even that figure. Their outlook is the 10-percent inflation in 2006 and the ruble appreciation of 26.2 to the U.S. dollar.

The Invisible HandGeorge Galloway speaking #1464668/8/06; 19:25:58

Hizbollah Is Not A Terrorist Organization


George Galloway has spoken out in support of Lebanon, saying he believes Hizbollah is justified in defending Lebanon against Israeli attacks . The Respect MP also lambasted media coverage of the war and said the UN resolution means nothing.

I THINK the antiwar movement was guided by the journalistic principle first annunciated by the great Claude Cockburn, father of Alexander and Patrick. Cockburn's principle was that nothing is true until it's been officially denied. And, of course, the corollary is also true—that which the state and the government claim should be treated as a lie until it's proved otherwise. While the mass media and the gullible among the political legislatures accepted hook, line, and sinker everything they were fed by the state, it all turned out to be false.
I think we instinctively imagined that there was an absurd level of demonization of Iraq going on, a total exaggeration of its potential danger, and the demonization of its leadership out of all proportion.
Israel's purpose, in its creation, was to keep the Arabs divided and weak and to be an advance guard for imperialist interests in the region, the full importance of which was only just becoming known when the Zionist enterprise sprang forth. And now, Israel is an indispensable, nuclear-armed military superpower acting on behalf of imperialism in the Arab world.
One of the reasons for keeping the Arabs divided and weak is, of course, so that the imperialist countries can steal their wealth, so that they could keep them in their box, so that they don't unify and challenge their domination of the region. But of course a consequent need is to make sure that no Arab power emerges that can balance Israel, let alone threaten it. Israel's overwhelming military superiority has to be maintained. And so one of the reasons for attacking Iraq was for Israel, but not because imperialism is working for Israel. It's the other way around.


US forces are ready today to destroy 10,000 targets in the Middle East in a few hours. US readiness for more war is just one indicator that
-the present war is likely to spread and intensify in the coming months
- diplomats, who are maintained alive with stolen (the thief does not come back periodically nor does he pretend to be stealing in the general interesr) tax money, are irrelevant - Gregoire Vardakis, can you hear me?
-oil is going to $ 250 as I said earlier today
-gold is going to …

Ten BearsBritish Petroleum's 'Smart Pig'#1464678/8/06; 19:57:12

by Greg Palast


The timing of a sudden inspection and fix of a decade-long problem has a suspicious smell.

Is the Alaska Pipeline corroded? You bet it is. Has been for more than a decade.

BP's suddenly discovered corrosion necessitating an emergency shut-down of the line is the same corrosion Dan Lawn has been screaming about for 15 years.

Ten BearsAnother theory#1464688/8/06; 20:38:01

The Enemy Is Oligarchism


Some foolish people believe that Israel is behind the war against Lebanon. Some other people think that the U.S.A. is behind Israel's role in the war.

Meanwhile, actually well-informed people know that it is the international financier circles of which Felix Rohatyn is a part, which are the actual forces steering the current plunge toward what is fairly described as "World War III."

And some more on the same track....

Could any of this actually be true??

The first casualty of war and all of that...or?

Chris PowellTed Butler: A blind man's world#1464698/8/06; 20:40:10

10:24p ET Tuesday, August 8, 2006

Dear Friend of GATA and Gold:

Silver market analyst and GATA consultant Ted Butler
has written what may be his most profound commentary,
arguing that the world has never seen a free market in
silver but that the current price manipulation, a
result of the long dishoarding of silver by
governments that formerly used it for coinage, is sure
to fail, and probably soon.

Butler's commentary is titled "A Blind Man's World"
and you can find it at GoldSeek's companion site,
SilverSeek, at the link above.

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

DruidChina Takes Heat, Blame From Iran For Hez Missiles?#1464708/8/06; 20:53:20

Druid: Ten Bears and yet another view. Query these authors and you will find that their political analysis is quite informative. They seem to have a decent record in making geopolitical calls. This article is an extremly scary commentary.
Mr. GoldfingerWho is winning the war in the mid-east?#1464718/8/06; 21:03:05

It is clearly Iran. They have destroyed their old enemy Saddam without firing a shot. Iraq is such a mess it can't challenge Iran for a hundred years.
The USA is bogged down in Iraq for the forseeable future. Israel can't defeat Hezbolah in Lebanon and so is going down the road of collective punishment making new Arab friends. What chance would they have against Iran?
Soon It will be one big Islamic republic from Iran to Lebanon.
Way to go George. Nice job!
$100/bbl oil coming this winter along with $1,000/oz gold.

Ten Bears@ Druid #146470#1464728/8/06; 21:20:18

Thanks for the link. A scary commentary indeed!
melda laure"The meek shall inherit nothing" frank zappa.#1464738/8/06; 21:20:44

hoeing taters! that's the lot meant for you, Sam Gamgee!

How about a corgie? They're quite civilised.

The squabbling in the ME has been going on since long before 1947. I wanted to rail about the badly executed plan for Iraq, but Nasr's comments cover most of the obvious points. It is too late for that anyhow. Despite the noise, the name-calling and the explosions and screams the mess in the middle east is a sideshow.

Where is the analysis Sir White Hills? What about Gold? Well you should ask. Mr Simmons was right, THERE IS NO PLAN B for energy. That is obvious. What I have been trying to ascertain is what exactly was PLAN A?

Does anyone honestly expect me to belive that TPTB, the great minds that run the world HAD NO PLAN A? Certainly they were never naive enough to belive oil would last forever. Assuming for the moment that the President met swift success in his Bold Plan for Iraq (and its neighbors). At the current rate of growth, Peak Oil might have been delayed for at most 5 to 15 years. That is hardly a strategic solution in the grand game. It barely counts as a play. Now Gold is to become the mark to market ASSET OF WEALTH, the PRIME MERIDIAN gainst which all others are referenced. Wonderful. What genius by the great ones! What happens to the energy markets? If gold sits on one tray of the balance scale and all other produce and capital sits on the other, then exactly what have TPTB acomplished? To bind us anew with a ring of gold only to send us back to an agrarian past, and to lose the preeminent position of the first world over the brown masses? To watch the great wealth of the modern age vanish down a dry bore hole?

Preposterous! So exactly what was Plan A?

It is a question that begs for an answer. Sir 'Lox, if I may ask, allow someone else to answer first. For others need to answer for themselves, as they walk in the footsteps of giants, where it is they are going, and perhaps review ALL of Boilermaker's suggestions. Gather ye golden grains yes, but do not follow the one-eyed son of Posidon too closely at unawares.

I refuse to be lunch, or breakfast (i or ii), or a trophy in a troll cave.

goldquest@ Ten Bears Ref: Pipeline Corrosion#1464748/8/06; 21:26:21

Check out September 13, 1969.
My first civilian flying job after getting out of the army and Vietnam, was flying a helicopter on the North Slope.
I also remember flying over massive amounts of 48" pipe stored and rusting, at Fairbanks. It dosen't suprise me that they are now having major corrosion problems, since the pipe was already close to being unusable when it finally got installed.

Ten Bears@ goldquest #146474#1464758/8/06; 22:17:41

"These pipes will lay rusting for more than five years before they are put to use."

Although there was unlimited money for the development of the North Slope field, apparently basic precautions were not taken.

I too recall that time period, as a time when an oil company paid for a Lear jet to fly a two hundred dollar part from Dallas to a seismic crew in that area just to avoid a brief delay in their survey. Sad that B.P. has not put much effort into maintenance.

SmeagolSss... There's No "Plan A" Under The Influence, Melda Precious...#1464768/8/06; 23:19:36

...after all, does one care or think, when in the treacherous euphoria of elven draughts, of the consequences after? Ssss! (cackle) Nay, precious! Enjoy the moment, yess?!

For that is what all Citizens of the World have largely wrought, have they not? The World-Peoples has drunk freely of Oil... and felt the rush of Power that has whipped Technology to a frenzy far greater than any wisdom of Men - or Elves - could ever hope to keep up with. Ssss! But the barrel runs low, and the terrible hangover comes ssoon, O yess, and the purging of the poison - and the fantasies. But Smeagol will be happy enough digging taters if we musst (and fishing)in the world of yessterday... sss.. that is, if we lives to ssee it.

For that is all poor Smeagol ever wanted... to live simply at Nature's whims, and keep a little food (and a little Precious, O yess!) against lean times. O, we would welcome the return of an "agrarian past"... yess, even the ring of Gimli's hammer, even that, precious... if it meant rendering today's demonic sysstems into memories and nightmare devices of destruction into plowshares.


GoldendomeMelda: Plan A has always been: Get something for nothing!#1464778/8/06; 23:30:34

Exchanging no great quantity of paper- if possible- for incremental oil. Exchanging, in total, as much as they'll take in quantity. Pump it till it's gone. Hope no one finds out too early, that they've been exchanging real wealth and power for, possibly, nothing in the long run. When interests are challenged, use fiat military to prop, destroy, and promote fiat nation. Step on gold, making fiat dollars appear to be something, for as long as is possible. Like right now.
contrarianLaRouche#1464788/8/06; 23:46:13

I have to admit there's some interesting stuff in this interview to ponder...worldwide war as a last gasp for control before economic doomsday.
plus he talks about the willful destruction of the US industrial capacity...

LaRouche: You referred to Gingrich, who is not really a nice person, but who is not entirely ill-informed: that the fact is that Israel did not invade southern Lebanon, or conduct many other things it did, simply as something of Israeli interest. In point of fact, as we see now, as many of us warned that this could be the end of Israel. Israel was sent on a suicide mission, a suicide for Israel, into southern Lebanon, and everyone who is of military and related competence, who saw the facts, have agreed—and we've shared these facts with them—have agreed, that this is a suicide mission.

Now the fact that Israel is being expended when people have tried to use it as an instrument of policy in this way, indicates that we've come to the point, that the friends of Felix Rohatyn, of the Synarchist International, the same people who created Adolf Hitler, and then dumped him, but they created him, and who also are responsible for launching the Hitler who they knew was going to conduct some kind of genocide against Jews, these people are trying to push us to a real chaos: because they know that the end of their financial system as it exists now, is doomed. That some time in the very near future, unless fundamental changes are made by the U.S. government in particular, this system is going to crash—not into a depression, but into a dark age kind of depression.

So they are rushing at this time, to get control of the planet, which is why they're pushing for a global world war! Now! Not a local war, not a regional war. The attack, the terrorist attack in Mumbai, which was largely a British creation, this attack shows you very clearly, and other things from the U.S. Administration also show you, that they're headed for a new kind of world war, World War III in a new form, from which civilization might not emerge.

contrarianHere's the link#1464798/8/06; 23:47:02

GoldendomeCan we go to future past?#1464808/8/06; 23:55:23

Sir Smeagol, our agrarian past may be re-awaiting us somewhere on the backside of the oil parabola. Possible growth industry for 2060...Harness makers?
Peculium AurumLight up the sky#1464818/9/06; 00:08:54

Fact or Fiction, Will Iran set off a nuke and light up the sky on Aug 21st or 22nd 2006. The anniversary of the Miraj. And what does this have to do with Free Gold. Does THE INVIABLE HAND have any inside info on this one.
GoldendomeThis doesn't bode well for civilization #1464828/9/06; 00:16:38

A quote from Contrarian's post of Larouche: "they're headed for a new kind of world war, World War III in a new form, from which civilization might not emerge."

Is Larouche here alluding to the nuclear weapon? And if, as many are now asserting, that we are in WW3, wouldn't the West's principal advantage be to fight this at the highest level weaponry possible? Extermination style? So- since the West would be looking for the other side to start the proceedings from which we could then respond, should we be expecting a nuclear attack--possibly self orchestrated as a pretext to hit 'em hard?
Remember the Maine!!!

SundeckME morass and oil etc.#1464838/9/06; 00:34:22

It is certainly easy to get frustrated and depressed with the unending morass that is the ME at the moment...which is heightened by the urgency in the industrialised nations associated with Peak Oil, and the "inconvenient truth" of global warming...

I must say, though, that I was heartened by an interview on Jim Lehrer's News Hour a few nights ago, in which it was apparent that large parts of the world community are very well aware of the dangers and threats associated with the looming end of the Oil Age and of the need for alternative energy sources and appropriate changes in the character of industry and society. The economy of "aletrnative energies" may proceed very rapidly with just a few enlightened regulatory changes that makes it advantageous for private enterprise to start creating new products and services and a framework for a new age. I suspect change will occur very rapidly, and the presently "primed" public may swing willingly, towards the new paradigm once the starting pistol sounds.

It is important, however, that governments do not dally too long in their reluctance to cast off the old ways...and even more important that they do not continue digging ever greater holes in the hope of finding salvation at greater depths of chaos and depravity. We certainly DO NOT NEED WWIII to teach us that there are better ways into the future. Einstein, when asked, said that he did not know what weapons would be used to fight WWIII, but that WWIV would be fought with sticks and stones!

The problem that we confront in Iraq and elsewhere in the ME exists as much in the minds of a few western leaders...strident, egotistical "poodles" and internationally naive "Texas cowboys" and "humble Howards" and the like. Having got themselves into a mess on the basis of misrepresentation and hubris, they may start to believe their own rhetoric. God help us if they do! We, the people, will risk being lead by these ratbags down paths that were never intended, never necessary and never ending; save by protracted and debilitating conflicts which no one can "win".

It takes a BIG man to stand up and admit he was wrong. Few men can do it. And that is very strange, because people greatly respect honesty and genuine humility in a person...


The Invisible HandPeculium, don't forget the Ayatollah #1464848/9/06; 01:08:35
Iran's Supreme Leader Ayatollah Ali Khamenei Tuesday called on Muslim states to get further united and guard against "conspiracies of enemies to cripple Muslims", the official IRNA news agency reported.
"Division is a lethal poison for the Muslim world and any action that would divide Muslims and serve enemies is a treason against the world of Islam," Khamenei told a rally on the birthday anniversary of Hazrat Ali, the first Imam of Shiites.
The Iranian leader noted that pitting Shiites and Sunnis against each other "is among usual conspiracies of enemies to cripple Muslims".
Lebanon, Israel and Syria -- a modest oil producer -- do not have significant weight in terms of energy
But Iran is the fourth crude oil producer in the world and a key member of the Organisation of the Petroleum Exporting Countries (OPEC). With 10 percent of world reserves, Iran produces around 4.0 mln bpd and exports about 2.5 mln bpd to Asia and Europe
Such a large output would be irreplaceable should a problem occur in current conditions because the gap between offer and demand on a world scale remains very narrow (between 1.5-2.0 mln bpd), offering little room for manoeuvre
A sustained rise in the price of gold has ignited Chinese investors' enthusiasm for trading in the precious metal, the Jiefang Daily reported Tuesday.
Analysts expect the gold market to remain bullish until the end of the year thanks to a weak U.S. dollar and high oil prices.
According to [Venezuela's President Hugo] Chavez, [Cuba's leader Fidel] Castro is recovering and can get up out of bed.

Date: Fri Nov 07 1997 22:37
2 ) What will be the new world reserve currency once the dollar is hyper-inflated to zero or devalued?

GOLD FINGERSunny days never last~!#1464858/9/06; 01:38:36


I hope your treasure chests are stuffed full of delightful Gold coins and other life saving things.

If not tomorrow, it will be soon. I think the inevitable will hit us. The other day I had the oddest dream. I saw that the world was in turmoil. I also saw a bomb hit the middle east. Not the kind that is hitting them now, but an even more powerful one. The countries would all end up spoiled. Tainted with radiation and the oil was worthless.

The holocaust was sent to stop. In reality it is what started the chain reaction of more. No oil, economic collapse.

The ultimate suicide bomb!

Do you think they care if we nuke them or not? They are already in the cesspool of crisis. My observation. Blunt it may be, not much different than all the urls I've seen and have been reading!

So how much will my cute treasure chest of gold coins be worth if we end up in a Nuclear war?

"Keep your chin up and keep reaching for the stars"

.....seems like a stupid quote that was always mentioned if someting was bad.

CalidorMy vote, Sir Golden Lionheart ...#1464868/9/06; 02:16:01

.... is with you. I appreciate what Sir TIH brings to this Oaken table. I prefer a "discussion" board of information; relevant facts; and yes, opinions.

But please leave the out-of-line comments to the discussion boards and BLOGS elsewhere.


GoldiloxOverseas markets#1464878/9/06; 02:20:21

PMs resuming their ascent in London as I hit the hay late this morning.

See you favorite charts for references.

GoldiloxHousing Bubble Watch: NAR Announces the Return of the Buyers Market#1464888/9/06; 03:20:53


Home buyers have waited for years but perhaps the agony is over. It is official; the National Association of Realtors® has confirmed that we are now in a buyers' market.

According to the NAR June report on existing home sales issued last week there is now a 6.8 month supply of existing homes on the market. One year ago the supply was 4.4 months. The joint report of the Department of Commerce and the Department of Housing and Urban Development on new home sales contained similar news; the supply of newly constructed homes on the market will take 6.1 months to absorb at the current sales pace compared to 4.3 months one year ago.


If buying into declining price market means "the agony is over", one might ask "for whom?"

I once tried to hire a very talented engineer who had purchased a home in LA during the '91 RE boom. In order to relocate, he needed a cash outlay of about $50,000 to cover his negative equity, and that was in the days when a 20% down payment was a "given". In this FED-insired market where 100 and 125% loan packages are available, the negative equities Johnny-Come-Lately home buyers of will reach -30% LTV in a heartbeat, and "leverage" and temporary low payment structures will evaporate.

Where will we find the next FED "bubble"?

We all know that the only answer they offer for corrective deflation is massive reflation, and that cash has to go somewhere to "earn" higher-than-official inflationary rates.

The Invisible HandBubble is kaput#1464898/9/06; 06:33:16

The Fed did indeed learn something from the Great Depression: never reduce the money supply drastically, and especially, don't let the inflation rate fall below zero. The chaotic behavior of the global financial system even after this "lesson'' was learned suggests to me that this fundamentally command-based economic institution will always find a new way to screw things up. As this article shows, when working, all the Fed does is mimic non-fiat based monetary system, such as the gold standard. When the current fiat money regime is not working, it is doing everything but that. With a nearly infinite number of ways to screw up, and subject to the short-term interests of Wall Street and politicians, but only one way to succeed -- it imitate the gold standard -- suggests to me the Fed is not only not helpful to the economy, but harmful

This chap repeats what happened in the Rubin/Summers period (Gibson paradox) where all the collaborators with the dollar International Financial and Monetary System (IFMS) had to bring the price of gold (POG) down to the $250 because in those days the degenerating M3 was still visible.
1994 had already announced this with a rate shock (to 10% on AAA-10 yrs) which HAD to be immediately neutralised.

Since M3 is no longer visible, the POG was allowed by the benevolent EMU/ECB to be set less unfree and to rise a little, after our masters had made sure that this rise would be gradual and not in a disorderly fashion. This COULD well be the reason why the Washington masters of the US of A concluded the Washington Agreement I and the Washington Agreement II.

When precisely would gold, according to A/FOA/TG, soar and would the euro take over the role of reserve currency?
Date: Fri Nov 07 1997 22:37
1 ) Why then did Hashimoto threaten to sell US SECURITIES and buy gold?
He will do both, but not in order or in amounts supposed. The BOJ is buying gold now , much more than assumed. They will sell US debt but only after a RISING OIL PRICE runs the US$ thru the roof. Even then it will be as minor currency management!
2 ) What will be the new world reserve currency once the dollar is hyper-inflated to zero or devalued? E-gold, gold itself or nuclear weapons?
I don't know, but we will all find out!

The Gold Trail Five
FOA (08/06/01; 09:37:25MT - msg#91)
Gold Mobilization
If foreign political motive decides to no longer support international dollar denominated gold derivatives with physical delivery or refrain from using gold as a trade settlement; the US will have to choose between shipping it's gold or seeing all international DOLLAR STRUCTURE AND USE FAIL! In it's place, Euro system currency would easily become the main reserve as SOARING GOLD values would replace "tender" value lost from dollar failure.

According to A/FOA/TG, gold would soar and the euro would take over the role of reserve currency, ONCE THE DOLLAR STRUCTURE AND USE WOULD FAIL.

The dollar is not yet broke. That's why gold is not yet soaring.

With oil at $80, it may be a matter of days
(before August 21 or 22 when Iran set off a nuke and light up the sky
Peculium Aurum (8/9/06; 00:08:54MT - msg#: 146481)
before oil will be priced in euro.

Then the dollar could be broke and the gold could soar.

In the meantime, it is of the utmost urgency that holders of dollar-papergold start learning to walk on physical (not invisible) eurolegs WITHOUT there being two currencies which are constantly fighting for supremacy.

Those in the know can only profit from the fact that the world economy continues to survive on its dollar debt mountains. There is indeed not enough gold available in order to convert the existing dollar debt amounts into gold. That's why gold has to rise exuberantly, but not rise in worthless dollar but in a currency which marks its gold reserve to market(-price), the euro.

The dollar-IFMS can now slowly be allowed to collapse. There is an alternative, the euro, available. This alternative will take over the role of reserve currency.

TooliePeculium Aurum (8/9/06; 00:08:54MT - msg#: 146481)#1464908/9/06; 06:39:22

Fact, Fiction or Fearmongering?

The first mention of the Aug 22nd Iranian Nuclear threat that I'd come across was authored by Bernard Lewis. Who is Bernard Lewis?

...and the backing that neoconservatives like Paul Wolfowitz and Richard Perle and experts like Bernard Lewis provided the administration when it was attempting to win public support for the war. --

.... Since then we have met often, particularly during the last four-and-a-half years, and Bernard has always had some very good meetings with President Bush. He is always objective, thoroughly candid, and completely independent. – Dick Cheney

Mearsheimer and Walt's essay, meanwhile, has been the object of much study by AIPAC's research unit, which intently follows the activities of critics of Israel and of the lobby. Its "Activities Update," a compilation of dozens of press clips, speech transcripts, and minutes of meetings, is periodically e-mailed to a select list of AIPAC supporters. This research provides the raw material for AIPAC's efforts to intimidate and silence opponents. The editor of "Activities Update" is Michael Lewis, the son of Bernard Lewis, the Princeton scholar and interpreter of the Arab world who gave advice to the Bush administration in the months preceding the war in Iraq. --

It appears to me as the administration has put their spin-team to work in an effort to head-off Mr. Lewis’ dark vision. The question in my mind is what "preemptive" measures are in the works. No doubt the coming days will provide us with "intelligence" on Iran's nuclear schemes. What does this have to do with gold? I'm not really sure but, if Iran is attacked that has much to do with the price of oil.

I wonder if anyone else has noticed how this administration seems to prefer shaping policy from a position of chaos. Rather than tinkering around the edges, it's chosen method seems to be destroy then rebuild. Whether it is the US export base, Katrina, or Iraq. An attack on Iran would put the Middle East in a position that meets my definition of chaos.

The Invisible HandThe Poodle and the Senator vs. the AntiWar Camp#1464918/9/06; 07:16:38

Golden Lionheart (8/8/06; 08:56:26MT - msg#: 146452)
The Invisible Hand........You are quite rude.
@ The Invisible Hand..............I find your constant reference to the Prime Minister of Great Britain as "the poodle" as an insult to the citizens of the UK. Wash your mouth out kind sir!,,1840239,00.html
Angry MPs demand recall of parliament
Discontent over UK's Lebanon policy
Patrick Wintour, Ewen MacAskill and Oliver Burkeman in New York
Wednesday August 9, 2006
The Guardian
Up to 100 MPs, most of them Labour, are to demand an immediate recall of parliament to debate the crisis in Lebanon because of growing fears about the government's strategy.
A prominent US Democratic senator says he is planning to run as an independent candidate after losing a mid-term primary in Connecticut.
Joe Lieberman, who stood for vice-president in 2000, lost to anti-war newcomer Ned Lamont.
Mr Lieberman, a senator for 18 years, has been harshly criticised in his home state for his support for the Iraq war


Tony the Poodle may have to postpone his Caribbean holidays.

He didn't postpone!
The pressure on Mr Blair came as he arrived in St Lucia today on his delayed Caribbean family holiday.
Before flying out to Barbados, the Prime Minister used a final round of broadcast interviews to express his hope that agreement on a United Nations Security Council resolution was imminent.


Is this not political suicide?

Clink!Future milestone on the road to an agrarian future#1464928/9/06; 07:22:35

Jim Cramer pimping buggy whip companies.


The Invisible HandIf Blair was not the Poodle of the bush#1464938/9/06; 08:10:29

If Blair was not the Poodle of the bush,
- the motion demanding an immediate recall of parliament would not emanate from MP s from his OWN LABOUR PARTY,
- he (Blair) would have the bXXXs to answer parliament's questions and would not leave to the Caribbean.

How come the Conservative Party is happy with Blair's War Policy?

The Invisible HandNo nonsense in Britain – Bernanke listen, please!#1464948/9/06; 08:20:12


The Bank of England has hinted that UK rates may have to rise further in coming months in order to keep inflation on target at 2%.
The news comes a week after the Bank raised rates to 4.75% from 4.5%.
The Bank's governor, Mervyn King, said the Monetary Policy Committee had opted to raise rates "against a background of firm growth and limited spare capacity and with inflation likely to remain above target for some while".
"There remains great uncertainty about future energy prices, especially in the light of political tensions in the Middle East, and inflation is likely to be volatile over the coming months," Mr King added.

Sierra MadreDiddling with the interest rate#1464958/9/06; 10:08:57

About the Bank of England's further raising of the interest rate:

Let's not forget that in today's world, each and every central bank of the world is obligated to expand credit continuously, because any reduction in the creation of more credit – actually debt, for those using the credit – means that the whole previously created credit structure is threatened with collapse.

So all talk about "reining in inflation" is just talk. Inflation of credit, which means inflation of the supply of money, is built-in and all central banks of the world are trapped in the sense that they have no option but to continue expanding credit and the corresponding money supply.

Talk of reining in inflation is just an attempt to manipulate public perceptions. Furthermore, the inflation to which central banks refer is always and everywhere, the inflation of PRICES, which is nothing but one of many consequences of increasing credit and expanding the money supply.

An increase in the price of oil is not in itself inflationary. If the price of oil rises, then it is true that other prices of goods and services affected by the increase of the price of oil, may tend to rise.

However, those prices will not be able to rise unless there is creation of additional money to ENABLE those higher prices to stick. And we can be certain, that additional money is being created by each and every central bank in the world. Including the venerable B. of E.

The Bank of England is not by any means going to put a stop to the creation of additional credit and money supply. They are only diddling with the interest rate in a psychological-operations activity, to confuse the public and do what they can to prevent financial collapse. Rising prices all over the world are inevitable and only a manifestation of what is really a falling value of money. Until the final runaway hyperinflation and collapse takes place.

Buy gold, at any price.

USAGOLD / Centennial Precious Metals, Inc.You are invited to join the NewsGroup#1464968/9/06; 10:40:39">join the newsgroup
geLAST STAND by SEYMOUR M. HERSH#1464978/9/06; 11:06:05

The tension is so thick that one can almost cut it with a knife...
TownCrierHEADLINE: In uncertain times, buy defense stock or gold#1464988/9/06; 11:49:57

Associated Press; August 9th, 2006 --

Richard Bernstein, chief investment strategist at Merrill Lynch in New York, said investors should be concerned about today's geopolitical environment, but noted that they needn't suffer financially.

"The world is an unsafe place that is getting more unsafe," said Bernstein. "What people are underestimating is the longevity of this story."

Bernstein does not view the United States’ current nuclear standoffs with Iran and North Korea, or rising terrorist activities around the globe, as short-term events.

But he offered a solution in the form of an offensive investment strategy, one that aims to profit from the market fear and military buildup that accompany such global instability.

Bernstein pointed to large arms purchases by China, Venezuela and other countries as a leading indicator of future U.S. military spending. As a result, he said the defense sector – "the grim reapers of the equities market" – is the place to be.

Bernstein said retail investors also should consider putting more money into traditional safe havens such as gold, treasury bonds and perhaps simply certificates of deposit, which are becoming more attractive as interest rates rise.

...both Alan Gayle, senior investment strategist for Atlanta-based Trusco Capital Management, and Bernstein noted that they have been recommending that investors reduce their exposure to equities for several months.

... Charles Biderman, chief executive officer of Trim Tabs, cautions retail investors against trying to time – or outsmart – the market...

While there might be fear in the market, HighMark Funds chief investment officer David Goerz said consumers should consider the possibility that things might not turn out so badly.

"Often times, these times of crises are transitory," he said.

^---(from url)---^

The final analysis will likely show that it would have been much more appropriate had David Goerz used the term "transitionary" rather than "transitory".

Is your portfolio currently designed to withstand a significant change in the make-up of the international monetary sytem's primary reserve assets?

Choose gold.


mikalMsg #146497#1464998/9/06; 12:48:50

Political disinfo
GOLD FINGERMore Gold Discoveries~#1465008/9/06; 14:40:53


With the price of gold rising higher and higher it looks like mining is taking on new luster also.

How could this change the PoG?

With increased mining and increased demand will it cause GOLD to rise or perhaps drop?

Dose mining explorations even influence the price of gold?

We can see how OIL demands and output greatly effects the over all price per barrel. Gold seems less sensitive. Is it because of its artificially being held down?

Just a thought instead of all the war and political bushy poodle crap!

USAGOLD Daily Market ReportPage Update!#1465018/9/06; 15:20:48">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

Gold up on oil strength and dollar weakness

August 9 (from DowJones) -- Despite selling overnight following the U.S. Federal Reserve's rate hike pause late Tuesday, Comex gold futures settled higher on Wednesday at the New York Mercantile Exchange amid a weak U.S. dollar.

At the close, December gold settled $4.70 higher at $662. During the session, the contract traded to a high of $666.50 an ounce - its best level in a week. It moved off the high near the close amid some light profit taking, traders said.

Analysts at MKS Finance in Geneva said in a daily comment that the general market sentiment remains bullish: "Firm oil prices and the ongoing Middle East conflict continue providing a support for the yellow metal as it increases its safe-haven appeal," the analysts said, adding that Israeli forces are said to have pushed deeper into some parts of south Lebanon Wednesday as Israel's inner cabinet approved an expansion of the ground offensive.

On the physical side, traders said gold will draw some support from the awaited pick up in the physical demand expected at the start of the Indian wedding season from the end of August.

---(see url for full news, 24-hr newswire)---

Mr. GoldfingerThe USD#1465028/9/06; 17:43:21

The USD continues to behave like a drowning man who has been tossed an anchor. The anchor is the war in Lebanon. Who is going to pay to clean up this mess? The answer is the US government who has paid for all the bombs and supports the destruction of Lebanon. In the world court where this will finally be played out the US will be held liable for all the destruction. They could have stopped this carnage before it happened, but instead choose to rush more bombs to the scene and stand in the way of the rest of the civilized world seeking a cease fire.
Lebanon has been bombed back to the stone age, it will cost billions to bring it back. The US will pay for this and continue to pay for their stupidity in Iraq. The USD is headed toward .60 then .40. What will be the price of gold then?

SundeckTony B.liar in the Caribbean...#1465038/9/06; 18:15:36

Ref TIH #146491 "Is this not political suicide?"

...shades of Anthony Eden...again a Middle Eastern crisis.

Eden was very unwell...both in body and mind. It spelled the end of his career...

What about Tony?


donnemuirSierra Madre #146495#1465048/9/06; 18:23:57

An excellent read on the subject of bank credit inflation..."The Grip of Death: a Study of Modern Money, Debt Slavery and Destructive Economics".
Chris PowellDon't let Barrick steal NovaGold to feed the gold suppression scheme#1465058/9/06; 18:38:44

An appeal from GATA Chairman Bill Murphy
is the latest GATA dispatch.

FlaccusGATA#1465068/9/06; 18:55:31

Out of curiosity how much of Nova's production is sold forward and what is free and clear?
Chris PowellReply to Flaccus regarding NovaGold#1465078/9/06; 19:04:07

NovaGold is still an exploration and
development company and while it has
huge resources and several big projects,
the company is not yet producing gold.

FlaccusAnother question#1465088/9/06; 19:07:21

How much of Barrick's production is sold forward? How much free and clear?
FlaccusThanks Chris#1465098/9/06; 19:09:35

Why aren't they in production?
Chris PowellMore on NovaGold#1465108/9/06; 19:46:04

They're not in production yet because
mine construction plans are not yet
drawn up. Barrick is supposed to do
that within a year, having inherited
the obligation by taking over Nova's
previous joint venture partner,
Placer Gold. But it is established
that Nova has huge gold and copper

FlaccusChris#1465118/9/06; 19:49:37

Let me make sure I've got this right. The value of Nova is dependent on the company that is trying to take it over?
The Invisible HandAbbas Bakhtiar: New Bretton Woods#1465138/9/06; 19:52:22

by Abbas Bakhtiar
U.S. and The Coming Financial Crisis
August 07, 2006 11:25 AM EST

If the dollar continues to weaken in value, and there is the possibility of purchasing oil in Euro [at the Iranian Oil Bourse], then these countries would unload their dollars for safer currencies such as Euro. What will then happen to the value of dollar?
The current American deficit and its long-term financial obligations, if goes un-answered, will sooner or later lead to either a marked increase in interest rate or a substantial devaluation of dollar.
At the end of the WWII 45 nations gathered at a United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire to address the problems of reconstruction, monetary stability and exchange rates,.
An initial loan of $250 million to France in 1947 was the World Bank's first act. Since then there has already been considerable criticism of the roles of IMF and the World Bank. The above mentioned problems and the ongoing trade imbalance in the world have to be addressed by a similar gathering. Sooner or later, both the United States and the rest of the world have to address the existing problems. This problem is not United States alone. We can not ignore the largest economy on earth. It is said that if United States sneezes, the world catches cold. We have to either make sure that United States doesn't catch cold or vaccinate ourselves against it.,,1840723,00.html
MP resigns over Middle East crisis
The government today suffered the first resignation over its stance on the Lebanon crisis.
I can no longer support the government's position of calling for restraint on both sides of the current conflict in Lebanon whilst, in my view, facilitating the refuelling of aircraft in our country that are carrying real weapons of mass destruction, as seen on our television screens," Mr Sheridan added.
Iran's monetary base down over 10%
According to experts, controlling and curbing the increasing growth of monetary base are the most effective method in keeping inflation in check, and it seems the monetary policies are directed to this end, the report indicated, adding the inflation rate, now at 10.4 %, may follow a downward trend hereafter.,22049,20070030-5006506,00.html
The US Government said Saudi Arabia and Mexico had pledged to help meet any supply shortfalls, but also warned that full production from Prudhoe Bay might not resume until January

Chris PowellBarrick's hedge book#1465148/9/06; 19:53:21

This story reports that Barrick is estimating this year's
gold production at between 8.6 million and 8.9 million

This report says Barrick's hedge position is now 12.3
million ounces:

Chris PowellValuation of NovaGold#1465158/9/06; 19:57:18

Flaccus, the valuation of NovaGold does
depend to an extent on the valuation and
conduct of its joint venture partner,
Barrick. Barrick is obliged to invest a
certain amount of money to advance the
Donlin Creek project to a certain point
by a certain date, 2007. If Barrick
does so, it can claim a big share of
ownership of the project. If it fails to
do so, NovaGold gets to keep that share
of the project as well as its residual
share. That is, the share of Donlin
Creek that NovaGold will end up with is
in question, a question that rests with

Mr. GoldfingerChris Powell #1465168/9/06; 20:05:50

I was told you couldn't talk about stocks here because the owners of this site want to sell maples. I guess you haven't been told?
FlaccusChris#1465178/9/06; 20:11:50

I've made my point and will not pusue it further. Own the metal, not the potentiality.
FlaccusGoldfinger#1465188/9/06; 20:31:48

My take over a lot of years camping here is that management here doesn't want to be responsible for creating the greater fool.
Mr. GoldfingerPat Robertson Prays For Israeli Victory#1465198/9/06; 20:31:54

By their actions you shall know them.
Mr. GoldfingerFlaccus (8/9/06; 20:31:48MT - msg#: 146518)#1465208/9/06; 20:40:35

My comment was a well recognized TA set up. No blind leaden the blind here brother. It wasn't a recommendation, it was purly academic.
The Invisible HandIOB lauch - end of September#1465218/9/06; 20:52:29

According to Iran News and Iranian Culture Journal of July 6, Iran will start the initial phase of its planned Iranian oil bourse at the end of September. An oil ministry official told that his ministry had already presented the relevant documents to the economic and finance ministry and the bourse organization. See also: Structural Changes – Destruction Of The U.S. Dollar

Google found this – link does not work
Iran will start the initial phase of its planned Iranian oil bourse at the end of September, the news agency ISNA reported last Wednesday.

Mr. Goldfinger don't you know how important the bXXXXXXs think AntiTrust law is for this civilisation?
So if you have that in your name, have a free hand to do and say everything you want.

As one Alan Greenspan wrote:
"The world of antitrust is reminiscent of Alice's Wonderland: everything seemingly is, yet apparently isn't, simultaneously. It is a world in which competition is lauded as the basic axiom and guiding principle, yet "too much" competition is condemned as "cutthroat." It is a world in which actions designed to limit competition are branded as criminal when taken by businessmen, yet praised as "enlightened" when initiated by the government. It is a world in which the law is so vague that businessmen have no way of knowing whether specific actions will be declared illegal until they hear the judge's verdict -- after the fact."

Druid(No Subject)#1465228/9/06; 21:20:13

Druid: TIH, not to overshadow Maximus, These have always been two of my favorites:

"Think now, if you are a person of "great worth" is it not better to acquire gold over years, at better prices? If you are one of "small worth", can you not follow in the footsteps of giants? I tell you, it is an easy path to follow!" --ANOTHER (THOUGHTS!) 1/10/98"


"ORO (11/13/99; 21:24:14MDT - Msg ID:19061)
..You may have seen the movie Matrix. The story is of humanity being used as production plant for something, the people live a life completely within their heads, controlled by computer simulations. The key to the hero's survival and success is realizing that the world around him, in which he grew up all his life, is completely false. Walking through a room full of people trying to free themselves from the images bombarding their brain, he crosses a kid bending a spoon. He asks the kid, how did he bend the spoon. The kid says, it's simple, there is no spoon.

What is played before us in the world is a hoax that you have been conditioned by daily experience to accept as reality. But there is a cost to the charade and a cost to you. But you can't bring yourself to come to the conclusion when you watch CNBC, read the Journal or Investor's Business Daily, see Moneyline, Ruckeyser, etc. that they are involved in a theatrical production; that they are like well trained actors in a drama about money that never was. Remember: There is no spoon."

literally, here at the castle, a recorded history in the making as left by so many gifted thinkers who stopped by to honor so many of us with their thoughts and presently continuing into an uncertain future.

White HillsSundeck#1465238/9/06; 21:27:47

"The problem that we confront in Iraq and elsewhere in the ME exists as much in the minds of a few western leaders...strident, egotistical "poodles" and internationally naive "Texas cowboys" and "humble Howards" and the like. Having got themselves into a mess on the basis of misrepresentation and hubris, they may start to believe their own rhetoric. God help us if they do! We, the people, will risk being lead by these ratbags down paths that were never intended, never necessary and never ending; save by protracted and debilitating conflicts which no one can "win"."

Sir Sundeck, you have to quit drinking that Kool-Aid. How silly! You couldn't be more wrong. White Hills

Sierra MadreThanks for the tip, donnemuir!#1465248/9/06; 21:47:13

Have ordered "The Grip of Death" by Rowbotham. I look forward to receiving it and reading.


Ten BearsThe Only Game Left In Town: Inflate or Die#1465258/9/06; 21:52:41

by Douglas V. Gnazzo

donnemuir #: 146504 Thanks for the link. & Sierra Madre #: 146495, good read, thanks.

On a similar track... Snippets:

Thus all paper fiat monetary systems are destined to one fate - they must inflate or die, there can be no other way.

The supply of money must increase at least by the prevailing rate of interest. Central bankers must yearly create at least as much new money as needed to service the outstanding debt. Monetary growth cannot be below the rate of interest on an aggregate basis.

When we look around the world we see one dominant theme or paradigm that is attracting money flows: paper is out and tangibles are in. Commodities have been the recipient of large flows of liquidity, and have responded in kind.

SundeckChavez journeys abroad with a purpose...#1465268/9/06; 22:09:40


On August 2, Chavez visited Mali, a landlocked, western Africa country, just south of the Sahara.

Mali is Africa's third largest gold producing country, but also incredibly poor. Chavez offered energy assistance in the form of crude; however, as expected there is a trade-off involved.

"I will give Mali $100 million a year in petroleum products and I do not want payment in cash. I don't want you even to say thank you," Chavez said.

But, why settle for cash when a harder, denser and incredibly valuable form of currency will suffice in place of fiat money.

"But I do need your mineral products like bauxite, gold and fertilizer...," Chavez was quoted as saying in a Reuters article.

Venezuela also offered to assist Mali in searching for oil reserves in the country.

It is interesting to look at Venezuela's huge oil reserves and relatively low mineral reserves in comparison. So, why not trade? Countries can keep gold as a currency, whereas oil is put on the markets, sold, and used. Interestingly enough, Chavez chose the country with the continent's third largest gold production rates to offer a helping hand.

Sundeck: What's this? A barter way to do business than by using dollars? Exchange of oil for gold? (Now who would have thought of that?)

Mmmm...Mali is a significant gold producer and this barter, if and when it gets under way, will have the effect of lifting gold supply directly off the market...



@Sir White Hills #146523

"Silly"? "Wrong"? Perhaps you are right; but anyway, thanks for the backhanded compliment.


GOLD FINGERRemember 1979?#1465278/9/06; 22:57:25

If we could turn the hands of time back to the 70's when we had a chance to really make a difference. History could have been rewritten. The mess we have now might not even be. WARS and turmoil over something that destroys our environment and creates greed.

What happened to all the carburetors that could get well over 100 miles a gallon?

Where did all the technological breakthroughs disappear?

I think we have an answer to this. Huge oil profits and NOW they will only get bigger. Did anyone think that perhaps all this planning would cause this huge POWER grab? OIL! I wonder who has who by the B___S now! I am ready for oil to move to 250 a barrel. I know how to ruff it. I bet those better gas guzzling autos are on their way back...I see this all benefiting the POG and I am ready to see it FLY!! SO BUY!!

This is a comment in response to a few of your posted URL'S and other writings that make my blood boil....WITH GOLD!

The Invisible Hand (8/9/06; 20:52:29MT - msg#: 146521)

SundeckOf poodles, power and pirates' gold...#1465288/10/06; 00:04:30

Tony seeks a tan of gold,
Where pirates buried wealth untold,
And slaves were brought and then were sold...
...the sunny Caribbean.

As "poodles" go, he's not so old,
His diction clipped, his manner bold,
His morals pure (or so I'm told)...
...the purest ever seen.

Who is better to uphold,
Britannia's stance beyond the fold?
Great thoughts, great deeds, great faith...behold!
...resplendent in his sheen.


Alas! Poor Tony's ship is shoaled,
His countenance grows grey with mould.
His policies, 'though once extolled... reek like raw gangrene!

10 August 2006

Dedicated to Truth and Justice


KnallgoldKitco#1465308/10/06; 03:44:55

A funny spike currently at Kitco down to zero and again back up.A timely reminder on what can happen in the paperGold pit.How is POG reported in FreeGold?Just Another price from a new exchange?
CalidorU.K.: Plot to bomb U.S.-bound planes foiled#1465318/10/06; 03:59:31

Snippet - MSNBC

LONDON - British police thwarted on Thursday what they said was a plot to blow up aircraft in mid-flight between Britain and the United States and arrested more than 15 people.
Both countries stepped up security, causing severe delays at airports following the revelation of the plot, which a police source said was believed to involve a "liquid chemical" device.
"The police acting with the security service MI5 are investigating an alleged plot to bring down a number of aircraft through mid-flight explosions, causing a considerable loss of life," Interior Minister John Reid said.
The U.S. Department of Homeland Security raised the threat level for all commercial aircraft to high and U.S. authorities banned liquids, including drinks, from all U.S. commercial flights.
Britain's security services raised the threat level in the country to "critical" from "severe," the highest of its five ratings which means "an attack is expected imminently."

Ned@ Mr. Goldfinger#1465328/10/06; 04:00:28

From yours earlier:

Mr. Goldfinger (8/9/06; 20:05:50MT - msg#: 146516)
Chris Powell
I was told you couldn't talk about stocks here because the owners of this site want to sell maples. I guess you haven't been told?

Only my thoughts but from reading Chris Powell for many years and understanding his intentions in respect to the gold business, he did not talk of gold stocks per se. Instead he talked of gold companies, Barrick and Novagold. This may seem like spliting hairs but his title bar in message #146505 says it all:

"Don't let Barrick steal NovaGold to feed the gold suppression scheme"

If you follow the thread of msgs 146505-146511, 514 & 515, it is clear the subject is not of stocks but of Barricks probable intentions with NG's vast reserves.

If there was any connotation towards gold stocks, which I doubt, it would be negative if anything.

Hope this helps.

The Invisible HandA Crude Awakening for Women (and Men)#1465338/10/06; 06:44:31

By Martha Burk, Ms. Magazine. Posted August 10, 2006.
Whether supporting repressive regimes abroad or giving tax breaks to ExxonMobil, U.S. priorities are consistent: Oil wins over women's rights.
Next up on the U.S. war-plan stage is Iran -- with the second-largest pool of untapped oil in the world. Although the ostensible reason for a U.S.-led invasion of Iran will once again be weapons of mass destruction, the politics of oil are peeking out from behind the WMD curtain. If Iran realizes its alleged goal of becoming the dominant center of Middle East oil commerce through a new oil exchange (the Iranian Oil Bourse) the currency would be the euro, not the dollar. Some analysts say that if petrodollars become petroeuros it could lead to a huge drop in value for American currency, potentially putting the U.S. economy in its greatest crisis since the 1930s.

Reparations for Iran
by ROSEMARIE Jackowski
(Thursday August 10 2006)

"One has to ask the question, how many civilians have been killed by Iran with nuclear bombs?"

On August 19, 1953 the government of the United States executed a coup d'etat in Iran
The United States owes reparations to the people of Iran. How much should be paid for the 1953 coup? How much is a democracy worth? Here's a thought. Suppose the U.S. gave all of its nuclear weapons to Iran. Would that be a win, win, win scenario? The world would be safer because the only nation that had ever used nukes would no longer have any. The people of Iran would be compensated for the 1953 coup. The U.S. taxpayers would be spared a bill for reparations.

The Invisible HandNo comment#1465348/10/06; 07:00:59,,9063-2306743,00.html

Investors today battled against heavy falls in London's leading shares after M15 raised the UK security threat level to critical in the wake of foiling a major terrorist plot to explode aircraft in flight
oil fell $1 to $76.14 and gold rose from $651 to $661 a troy ounce.

GoldiloxMarket Spin is necessary#1465358/10/06; 08:47:16


The war spin must be whooped up when markets are tumbling, as the financial PTB need scapegoats along with completely fabricated statistics to mask more serious failures. They can rally the masses around a story like "Terrorists cause dollar and Sterling drops", but how on Earth can they keep the sheeple in line when the story lines are, "Dollar drops on continuing US bankruptcy", or "Sterling loses even more confidence than when Brown sold off its support structure on the cheap".

Whether the "clear and present danger" is real or fabricated is not even the issue. The public is continually sidetracked from financial slight-of-hand to political finger-pointing. This is the same tired disinformation trick of the same Money Masters who beat war drums to obscure the failures of the "men behind the curtain." Read: "Maine", Lusitania", "Pearl Harbor", "Tonkin", "WTC", etc. - the pattern is never altered a bit. The sheeple keep buying the "news" exactly as the "bought-and-paid-for" wire service feeds it. Even "investigative" reporters are completely anachronistic, replaced by pretty "talking heads" that read directly from the wire service script, and CIA 'heroes" like Ollie North who deliver us disinformation by day, and heroin by night in the coffins of our dead soldiers.

Just as US gold was diverted to "rebuild" Weimar Germany after the WWI "reparations" destroyed its chances of economic recovery, US and UK resources have been tapped over the last half century to first build, then destroy the ME, in an effort to control of the resources and commerce in both phases.

The sheeple have no more idea what's really going on in the ME now than they did when grandpappy Bush and Roosevelt were feeding the Nazi War machine with the pilfered savings of US workers who were left standing in the 1930's soup lines. The wealth confiscation model was recently retested with a new "twist" by the Bush-Clinton Katrina Charity that has yet to redistribute a single dime of their $400M in telethon collections. PT Barnum at his best could not emulate these guys.

It only takes a quick look at the negative US savings rate, soaring government and trade deficits, and continuous oil supply crises (while serious alt energy research still receives NOTHING but lip service) to see that the seeds of bankruptcy that brought Hitler to Germany are being sown in the US and UK today.

The World Trade Center "event" was but a proxy for the collapse of Anglo-American hegemony. And it is being "pulled" every bit as much as WTC-7.

Oh, and the resurgence of Newt Gingrich and his remarks that "dissent at the polls amounts to insurgency" shows their true disdain for any "real democracy."

Henry BowmanYour #146535#1465368/10/06; 09:10:33

Well said. You're right on target. So few see what's happening. And fewer still try to do something about it.


Chris PowellBarrick, NovaGold, and investors in physical gold#1465378/10/06; 09:53:28

Thanks, Ned, for clarifying my point: that
Barrick's attempt to acquire NovaGold is
important less for the valuation of those
companies than for the impact on the price
of the metal itself.

That is, Barrick is admittedly a mechanism
used by central banks to suppress the
price of gold, an admission made by Barrick
in its motion in U.S. District Court in
New Orleans to dismiss Blanchard & Co.'s
anti-trust lawsuit. (That motion can be
found at the link above.)

Barrick claimed that the lawsuit should be
dismissed because, as the agent of the
central banks in the gold market, the
company should share their sovereign
immunity from suit.

As long as Barrick is the agent of the
central banks in the gold market, investors
in physical gold have as much interest in
the company's activities as investors in
mining shares do. What Barrick does has a
huge depressing influence on the daily
price of physical gold.

KnallgoldGolds tax twist#1465388/10/06; 13:20:31

Druid(No Subject)#1465398/10/06; 14:27:48

Druid: Interesting data.
The Invisible HandThe talking (non-)heads#1465408/10/06; 14:43:54

Whereas Tony the poodle went on holiday, 9/11 is being replayed.

It is very surprising that CNBC manages to calm the atmosphere. Did they get training?

They are debunking the intraday gold price behaviour (volatility) in a contained triumphant manner/way. The manner implies "We've got everything under komplete kontrole, including the fitting terror atmosphere, of course."

The dollar-kompleks (including the neocon-NWO) is working very smoothly and boosts of self-konfidence in all areas (very VISIBLE self-complacency with ever fewer reserves).

Wait until the invisible hand takes over.

Nuclear warheads, said you?

The Invisible Hand CP#1465418/10/06; 15:00:43

What is the relevance of a possible Barrick/Novagold merger?

In other words: How can 500 or even 1,000 tonnes of "underearth" gold (forward sales) influence a total volume of 160,000 "upperearth" gold?

Were there no goldmines after 1971? The annual level of mined gold evolved from 1,000 tonnes to the present 2,500 tonnes? Was therefore the price of gold not continuously contained/governed/managed since 1971?

Do you prefer cheap purchaseable gold metal or rather rising gold stocks?

If gold mines are being plundered by having to mine cheap gold, why don't you advise (the very rich among) us to buy directly from the mines? Right, our host wouldn't allow that. Why don't you do that on your website?

ArmageddonGold Price Drop On Terror News#1465428/10/06; 15:14:59

I believe this is just more Federal Reserve/ International Banker Manipulation. Maybe even a practice run in anticipation for when the real big terror event arrives in the next couple of months. The bankers want to see how much money they will need to get the desired effect on gold prices. This is a dry run to see how the financial system will react.

I think there is going to be a nuclear bomb going off in a major American city soon and gold will be hammered again only more vigorously. Gold stocks will get creamed since in the stock market panic that is to follow margin calls will happen and people will prefer actual gold metal to stocks. I hope to get rid of my remaining gold stocks and buy both physical gold and gold stocks with both hands when the nuke goes off.

TownCrierSurface gold 'is running out'#1465438/10/06; 15:43:12

10 Aug 2006 -- Gold's production decline came under the spotlight on Thursday, as Statistics SA said production plummeted 9.5 percent year-on-year in June.

Much of this decline in output can be explained by the long-term trend of falling gold production, as ore deposits at the surface have become increasingly depleted.

June's disappointing gold production figures bring to an end a poor second quarter for the sector. Gold production for the June quarter 2006 plunged 6.9 percent lower than the same quarter last year, despite the value of gold sales climbing steadily on the back of a higher gold price

Gold sales surge

Sales figures for May show that gold sales increased by 39.4 percent year-on-year, in a month in which gold production fell by 12.8 percent year-on-year.

While higher gold prices should be encouraging producers to increase output at the margin, physical supply constraints undoubtedly remain in the sector, and may be adding to the upward price pressure.

...Recently gold producers have signalled their intent to invest in operations to mine ore at greater depths. Mining houses have indicated that the constraints to mining ore at greater depths have not been technological but rather economic.

^--(from url)---^

Bottom line: Mines are NOT profit centers. Always struggling against depletion of their orebody, as gold prices go higher, they respond by mining marginal ore at increasing cost. Hence, no dividend joy for shareholders as a result of higher gold prices as time marches forward. Choose the metal if you want a gold-related investement to treat you right.


mikal'Nuculer" means new world #1465448/10/06; 15:47:41

"Nukular" will show up somewhere. Instead of depleted uranium, "hot war" or dirty nuke possible
but financial meltdown certain. Better
to have gold than paper.

USAGOLD Daily Market ReportPage Update!#1465458/10/06; 18:08:04">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

Gold dips as oil drops on airline plot

August 10 (from Reuters) -- COMEX gold took a dive on Thursday and along with oil prices ended with steep losses following news that an alleged airline bomb plot was disrupted that investors saw reducing demand for jet fuel down the road, traders said.

Britain and the United States stepped up security and London's Heathrow airport ground to a near standstill, after UK officials said they thwarted a plot to blow up trans-Atlantic flights between the two countries.

The news reined in oil prices that had risen to record highs this week on BP's decision to reduce output at its Prudhoe Bay oilfield in Alaska, the biggest in North America, because of pipeline corrosion.

Analysts speculated that the latest bomb plot might reduce air traffic and therefore the need for jet fuel, recalling the slump in fuel demand that followed the 9/11 explosions at the World Trade Center in New York.

On Thursday, when oil prices slipped about $2 to levels below $76 a barrel, gold went with it. "Oil's down, gasoline is down... with all the planes that will be canceled, and fears that people who were thinking of travelling would put off their plans," said one gold dealer in New York.

COMEX December delivery gold ended with $16.0 losses at $646.0, with range that dipped to $645.50 from a $665.10 high.

The dollar climbed further against the euro after U.S. trade data showed the international trade deficit [$64.8 billion, 5th highest on record] narrowed slightly in June, but was in line with forecasts even as high energy costs kept it near historically high levels.

"The dollar got quite a bit stronger today against the euro. There wasn't much of a move up in gold that you would expect when you hear of a terrorist plot. But since nothing happened and they were ahead of these guys, it was a big plus," a gold trader said.

---(see url for full news, 24-hr newswire)---

Gandalf the WhiteThank you Sir Druid for the LINK ! <;-)#1465468/10/06; 18:14:40

"Druid (8/10/06; 14:27:48MT - msg#: 146539)
(No Subject)

Druid: Interesting data."

I have studied the Report and the explainations at the bottom of the data, and sent the following QUESTION to the Department for an ANSWER. -- PERHAPS someone here can answer the QUESTION, or, shall I hold my breath until I get an reply ?

RE: Department of the Treasury
Financial Management Service
June 30, 2006
Total - Federal Reserve Bank-Held Gold 13,452,783.620 Troy Oz.
Please advise me WHY this gold is being held by the Fed Reserve ?
Thank you !

TownCrierAdditional Daily Gold Market news...#1465478/10/06; 18:20:53

(from MarketWatch) -- Security authorities in the U.K. arrested up to 21 people and halted flights to Europe and the U.S. after foiling a plot to blow up as many as six airplanes.

The plot revolved around bringing liquids that could explode on board planes through hand baggage.

All those arrested were U.K. nationals of Asian descent, reports said.

The Associated Press reported, citing unnamed U.S. counterterrorism sources, that flights from Continental Airlines, American Airlines and United Airlines were targeted.

Britain's national security threat level was raised to "critical" from "severe." The U.S. government raised its threat level for commercial flights to Britain to its highest level and the U.S. Department of Homeland Security warned that "we cannot be sure that the threat has been entirely eliminated."

J.P. Morgan analyst John Bridges said gold was 'misbehaving' because investors appear to have decided that the terror threat "has apparently been defused, the gold insurance can be foregone for a while, and they can refocus on summer holidays... We believe this highlights the complacency and short-term nature of much investment."

Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch, said gold's move was puzzling as it should have benefit from its traditional safe-haven role.

"The news is coming in so fast and furious that traders are almost in shock and are getting their bearings and deciding what to do next," he said.

Kerr said he expects the metal to rally once the gravity of the situation has set in and investors turn to the metal as a safe-haven instrument.

"We see $700 gold as a major possibility should these events escalate," Kerr said.

^---(from url)---^

Follow the newswire and join the NewsGroup to stay abreast of breaking developments.

You all understand why gold isn't allowed to react upward on the day of scary news, don't you?

It's because people have very short attention spans. The gold market, with its price still in the controlling hands of vested interests, is too delicately balanced to allow for the extra demand that would come upon the heels of any price performance that provides immediate positive reinforcement of investor sentiment.

Thus, if most people can be shown a gold price that doesn't respond -- or even NEGATIVELY responds -- on the day of an attention-grabbing event, most of them will thereby be kept on the sidelines.

The price will surely rise a short time later, but by then it will be off their personal radar screens.

Frankly, the one thing being manipulated moreso than the price of gold is investor sentiment.



Chris PowellReply to Invisible Hand regarding Barrick#1465488/10/06; 18:52:06

Barrick is the big physical short in the
gold business -- fronting, as Barrick has
admitted, for the central banks. Anything
that allows Barrick to obtain gold cheaply
-- like acquiring NovaGold at a bargain
price -- facilitates Barrick's short
position and helps suppress the gold
price generally.

Short covering by gold producers is
acknowledged to have boosted the gold price
substantially in recent years. So what if
Barrick had to cover its short position of
about 12 million ounces by going into the
physical market instead of buying gold in
the ground at a great discount? The gold
price would rise sharply, or else central
banks would have to dishoard a lot more
of their gold reserves, which they are
proving reluctant to do.

The central bank scheme here all along
probably has been 1) to drive gold down
so far that their currencies and bonds
would be strengthened and only the
biggest mining companies could survive
by hedging gold borrowed from the central
banks, 2) to push smaller mining companies
and exploration companies into bankruptcy
or induce them to sell their assets at
distress prices to the majors, and 3) then,
when central bank gold reserves are nearly
exhausted and the heavily hedged big miners
-- conscious or unconscious agents of the
central banks -- have acquired the best
mining properties, let the gold price rise,
so that 4) most of the mineable gold has
been put in the hands of the central banks'
agents, from which it can be returned to
the central banks as the hedges of the big
producers are covered.

That is, the central banks run the gold
price down to strengthen their currencies
and bonds and then call the gold back on the
way up, retrieving their wealth and power
in golden form as their currencies and bonds
weaken, insuring themselves against the
monetary debasement and inflation they

If you disagree with this speculation, try
to attend the next meeting of the board of
the Bank for Intenational Settlements in
Basel, Switzerland. If you manage to get
inside, ask the head of the BIS Monetary
and Economic Department, William White,
about the speech he gave at a BIS conference
in Basel in June 2005, "Past and Future of
Central Bank Cooperation," which is available
at the link above. White's speech is a frank
admission that central banks rig the gold
market. And the gold Barrick hedged,
suppressing the gold price, came from central
banks through J.P. Morgan Chase, itself
essentially an agent of the Federal Reserve
and Treasury Department.

Then, of you still don't care about Barrick,
I will apologize. This is the best I could do.

Mr. GoldfingerGeorge is callen a spade a spade now, he has just insulted all of Islam.#1465498/10/06; 18:56:49

US president George Bush has said the alleged plot to blow up transatlantic flights is a "stark reminder" the US is "at war with Islamic fascists".
Black BladeRe: Mr. Goldfinger, all#1465508/10/06; 19:21:42

I seriously doubt it. He calls Usama and Islamic terrorists "Islamic Facists" and yet hold hands with the King of Saudi and kisses him on the cheek. LMAO

- Black Blade

A side note, some floor chatter is that Morgan Stanley among a few other investment houses and banks went heavy into long positions on precious metals and petroleum thereby dropping these defensive stocks like lead balloons on news that normally would kick off strong rallies. Note that ConocoPhillips (NYSE:COP) on Thursday declared "force majeure" on Alaska oil shipments, while BP just announced on CNBC that they shutting down the entire Prudhoe Field after an initial inspection. Got that! "initial inspection"!!! Then XOM and Shell are rumored to announce that they too will declare "force majeure" on all west coast markets.

Northern California refineries are scared and are certain to face lawsuits from state government and "citizen groups" (aka "ambulance chasing lawyers") as they can only process intermediate grade oil (similar to what they did to the NatGas companies in 2003). The only other sources of intermediate or better oil are in Africa and North Sea. That means fleets of small Panamax tankers will be running wild to scrounge any and all intermediate and light sweet crude oil. The Panama Canal is backlogged 3-4 days on both ends. This is gonna be a whole lotta fun. the smart investor will take advantage and of course physical gold went on sale this morning thanks to some "interesting" morons in high-rise Wall Street offices. Might as well take advantage and grab some while on sale.

Black BladeCorrection...#1465518/10/06; 19:23:17

"A side note, some floor chatter is that Morgan Stanley among a few other investment houses and banks went heavy into long positions..."

Meant to say "short positions"

- Black Blade

Mr. GoldfingerDeath and destruction in the mid-east.#1465528/10/06; 19:27:12

The oil is not worth it. Try something else. This consuming, resource destroying society has come to it's end-times. Someone will have to come up with some other means to keep an economy of billions going besides sucking every last drop of oil out of the ground.
Tulips drove a market once. It seems stupid now, but it illustrates that an economy and a market can exist around practically nothing at all.
Perhaps the information revolution will provide the conversion from rabid consumption to miserly conservation. Factories and work forces need only exist in cyberspace selling non existent goods and services to internet consumers who use their digital material only to advance themselves in the pecking order of their social circle. Much like today. Except for one thing. There will only be a transfer of data. No one leaves their home. Their is no destruction of precious resources and the end result is the same, prestege and recognition.
This will be the new paradigm.
What happens to gold it this kinda scenario?

Mr. GoldfingerBlack Blade#1465538/10/06; 19:37:35

I seriously doubt it. He calls Usama and Islamic terrorists "Islamic Facists" and yet hold hands with the King of Saudi and kisses him on the cheek. LMAO

Laugh fool. Saudi Arabia is a puppet government, that is why they have a King. Not your western style democracy being promoted in the mid east. If the USA gets into real trouble the Saudi government wouldn't last week.
Your vision is much to near time centered. You need to look a bit further out.

Black BladeRe: Mr. Goldfinger#1465548/10/06; 19:42:58

"The oil is not worth it. Try something else. This consuming, resource destroying society has come to it's end-times. Someone will have to come up with some other means..."

Be my guest. Do that and you can buy both Bill Gates and Warren Buffet. It would be the equivalent of finding the "Holy Grail". ;)

We started out having slaves and animals doing the work. Then water wheels, later steam engines and whale oil. later Petroleum Liquids and Energy Minerals. Find the "magic bullet" and you would have more money than God! ;)

- Black Blade

Mr. GoldfingerSomeone will have to come up with some other means..."#1465558/10/06; 19:47:58

I don't mean an "other means" of energy. I mean another means to keep everyone occupied that wouldn't consume all the resources left in the ground.
DruidGandalf the White (8/10/06; 18:14:40MT - msg#: 146546)#1465568/10/06; 20:21:25

Druid: Great Wizard, my pleasure. Please post any response. Thanks.
Black BladeRe: Mr. Goldfinger#1465578/10/06; 20:24:28

I am quite happy to set oil and NatGas wells. In fact set a shallow NatGas well today, a shallow vertical oil well on Monday (maybe 300+ bbls minimum from earliest indications), and another CBM NatGas well last week.

It is the work that made me the man I am today - as my Colombian and Indonesian girlfriends say - "financially stable". ;)

- Black Blade

Ten BearsThe background of CEO's, Brown-outs and Oil-spills#1465588/10/06; 21:34:18

It is hard for me to believe what is happening in natural resource and utility companies these days. I can still remember when geologists and geophysicists and engineers were at the helm. The trend shifted sometimes to sales people and even an attorney or two in some decades, but now unfortunately, it has shifted to financiers.

Not only have the financial corporations sucked the life out of the industrial corporations, they have placed their gnomes in charge of companies which require an understanding of something other than present value calculations and cost cutting and staff reductions.

I recall predictions a quarter century ago that these boys would not be able to keep the lights on or the oil flowing. Those predictions have proved to be right on target. As General Douglas MacArthur said "If it is right at the top it will be right at the bottom"…now it is neither.

GOLD FINGERTHE GOLDEN SUN SHINES~#1465598/11/06; 00:28:01


I think our current energy crisis is actually pre-fabricated. There is no shortage of oil or electricity or natural gas. I think all of this supply and demand tug of war is in part due to distribution and production. I know from what I read there is plenty. Plenty for a 100 years or more.

The Saudis do not tell anyone how much they have. Just prior to 2000 we had flows of oil at low costs. Now with all the turbulence it has investors jittery and this alone is one factor to hike up the cost.

I have also noticed that when companies need a reason to raise the price they can find it. The war and terrorist activities all became just so convenient. I am not worried about running out of the black gold, what I am worried is our dependence on it. I am also worried about all the red tape that black blade mentioned on how every one wants to sue a company for some environmental issues.

France, has more Nuclear power facilities than I have underwear. I think the USA has become very lazy on the front line of energy research and even development. We want our cake and want to bake it in the oven too??

I do feel that if we could cut back our oil consumption mixed with alternative fuels and other energy products with more fuel efficient cars and appliances and a better attitude about energy use we would see the demand slow and the worries go and oil would drop.

So we do not slip into our OIL ADDICTIONS we could impose a tax. A three letter word? A good way to take the funds and build other energy options. So what's wrong with these ideas? You would think by now someone might put this into action!!

GOLD on the other hand is far undervalued. How can you but a value on something that is consumed but not used up. It's extremely durable and has always been a symbol of wealth.

When I die, I am going to have all mine melted down and then I want my casket to be dipped into it. My dead body surrounded by gold. WOW, how elegantly morbid.

Cheers to a better tomorrow!

Black BladeOil Producers and Refiners In Race To Charter tankers to Bring Tight Oil Supply To West Coast#1465608/11/06; 00:51:00

BP readies oil tanker spree after Alaska outage


LONDON (Reuters) - BP is scrambling to move oil from across the world to make up for lost production at its Prodhoe Bay oilfield in Alaska, shipping industry sources and brokers said on Wednesday. On Tuesday half of the field's output, some 200,000 barrels per day, was shut-in. London Brent crude oil prices hit a record on Tuesday on news of the outage. BP's enquiries for fixtures ranged from Very Large Crude Carriers (VLCC) to suezmaxes and smaller panamax ships, from as diverse places as the Middle East Gulf, West Africa, the Mediterranean and the Caribbean.

Black Blade: There is simply not enough intermediate grade or light sweet crude to make up the loss of 200,000+ bbl/day of Prudhoe Bay oil (likely to be much more). Nearly 346 million bbls travel from Valdez, Alaska every year (Nearly 950,000 bbl/day) - that's 17% of domestic US oil production. Many here know I have already discussed the lack of refining capacity over the years.

Don't be surprised to see producers and refiners to hire Tanker fleets of both "dirty" and "cleans" to avoid "force majuere" as what happened to ConocoPhillips (COP) yesterday. Other companies in trouble for meeting delivery of intermediate or better quality crude are Exxon-Mobil, Shell, and to a small degree Chevron (among others). Meanwhile the northern refiners in Benica and Pittsburg (SF Bay area) were never upgraded to handle lower crude grades due to the enviromentalists in the state that opposed the expansion and upgrade of local refineries.

$4-$5/gallon unleaded by September or sooner would not surprise me at all. But what the heck - that's my job. In life there are winners and there are losers. I have been quite fortunate and much has been to to the scarcity and rising cost of energy. Today I saw unleaded zoom up to $2.73/gallon for unleaded. "Interesting Times"! Hang on tight to your Gold and Silver. This story will get even more "interesting" and has a long way to go. KA CHING!!!

- Black Blade

GoldiloxOil Tankers#1465618/11/06; 03:40:37


Perhaps this ios too simplistic, but why are the tankers that leave Alaska with the oil at the end of the pipeline not available to use for "replacement"?

It would seem to me that if their goal is replacement of output that the tankers originally destined for the lost output would be the ones used for rerouting.

Are tankers, like refineries, only able to ship one variety of oil?

Ned@ Chris Powell#1465628/11/06; 03:55:55

You are welcome.

Please keep us informed on the Barrick/Novagold news.

GoldiloxBalance of Trade#1465638/11/06; 04:19:04


The Bureau of Economic Analysis says the Balance of Trade in June was just about the same as May.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total June exports of $120.7 billion and imports of $185.5 billion resulted in a goods and services deficit of $64.8 billion, $0.2 billion less than the $65.0 billion in May, revised. June exports were $2.4 billion more than May exports of $118.4 billion. June imports were $2.2 billion more than May imports of $183.4 billion.

In June, the goods deficit decreased $0.7 billion from May to $70.4 billion, and the services surplus decreased $0.5 billion to $5.6 billion. Exports of goods increased $2.5 billion to $86.6 billion, and imports of goods increased $1.9 billion to $156.9 billion. Exports of services decreased $0.2 billion to $34.2 billion, and imports of services increased $0.3 billion to $28.6 billion.

In June, the goods and services deficit was up $6.4 billion from June 2005. Exports were up $14.8 billion, or 14.0 percent, and imports were up $21.2 billion, or 12.9 percent.

Unfortunately, what I look at is not the month-month numbers./ instead, I prefer the daily run rate. The $65 billion in May was in a 31-day month. That's $2.09 billion per day. June, at $64.8 billion in 30-days was running a higher daily burn rate of $2.16 billion per day.

But hey! Don't listen to me on this...just look at the burn rate and the coincidences around... Consider what happens this fall when Alaska oil comes off in the reports that will reflect the pipeline closure...


Lost in the hype of the TSA announcements is the Balance of Trade release. George Ure had this to say about that! Thanks to our Roman calendar, it's even possible to hide increases behind unevenly divided months.

USAGOLD / Centennial Precious Metals, Inc.Choose well... a good treasure never goes out of style#1465648/11/06; 10:40:44

Golden Goal

"Treasure chests throughout history
have been filled with gold, and not by idle choice."

-- R. Strauss

ge(No Subject)#1465658/11/06; 11:18:13
"Hezbollah's troops are using modern and sophisticated Russian-made anti-tank missiles against Israel's army in fights in the South of Lebanon, Israel's defense minister Amir Peretz said Wednesday, RIA Novosti news agency reports.

"We are fighting against the Iranian commando, which is armed with sophisticated, modern weaponry. This includes Russian-made anti-tank missiles, which in the past it was promised would not fall into the hands of Hezbollah. This weapon is used today against IDF soldiers in Lebanon," Peretz said during the meeting with the German Foreign Minister, Dr. Frank-Walter Steinmeier, reports."
Russia denies sending anti-tank weapons to Hizbollah - ministry

Nathan BrazilTimelines#1465668/11/06; 12:07:15

As I sit here, composing my first message for this fine discussion forum, I am actually saddened at the embarassment of riches in topics to choose from. Debt, inflation, peak oil, global warming, you name it.

Age does bring a measure of historical perspective that cannot fully be achieved by the young merely studying history. History is best lived to be absorbed. What a shame that the more experience you get, the less time you have to put it to use.

I took my first bath in the silver market almost 30 years ago as a wide-eyed youngster with a bit of inheritance who wondered why everyone didn't make their living trading commodities as it was obviously "easy money". Shortly thereafter I learned how the word "leverage" related to the words "margin call" in the real world. I was not wiped out, but "wow". As Bing Crosby said in "Holiday Inn" that's somewhere between "ouch" and "boinnnggg".

I have watched the world go by for those 30 years since and I have studied chaotic systems along the way. Obviously our little island of relative "peace and prosperity" in history cannot and will not endure. Neither will our fiat system(s) since, as we all know, none ever has.

But I am dismayed that some here seem to eagerly anticipate the collapse and are disappointed that it has not already come. They are ready, so they think, so "bring it on"!

The whole world stands to lose everything if the dollar collapses. Even if you are a billionaire and have built a stocked and fortified bunker on your private island, your life will never be the same and will be WORSE if the dollar suddenly collapses. Just-in-time manufacturing will fail, all manner of deliveries will stop, 99% unemployment will result in chaos, famine, and anarchy.

But you are safe on your hobby farm with solar power and gold? Think again. You simply lack scope of imagination to understand what will come. In "When Money Dies" Fergusson describes angry, desperate mobs from the city attacking cattle in the field and ripping them limb from limb. If we become angry enough to kill because of road rage, what will happen when our children are starving and our society believes it is their "right" to have food and shelter? They will take it by force until nothing remains and kill you along the way for "hoarding". Stop worrying about dieting, in that scenario the overweight will inherit the earth.

Fortunately there really does seem to be a group of elites attempting to control the world through its financial system. That was a very very bad idea in the beginning of course, but now we are at the end of that road and there is no turning back. That they stand to lose everything if there is a monetary collapse is a happy coincidence for the rest of us.

I believe that is why collapse does not come, despite our governments best efforts to bring it. The CONTROL regimen has been successful so far, and I HOPE IT CONTINUES TO BE! If that means manipulating the price of gold as long as possible, FINE WITH ME! Don't underestimate them. When literally billions of people have a stake in the status quo, it can apparently be nursed along longer than anyone would have believed possible. This is not a consipiracy at the macro level, just very powerful common interests.

If you look back through these and other archives, you will read the same "imminent collapse" call for at least the last 10 or 20 years. I recently watched a recording of Ronald Reagan's speech to the U.S. Congress in 1982(?) in which he decried the absolutely unaccpetable and unsustainable national debt of "one trillion dollars". Well obviously we did sustain it, and now its 8 times higher. EIGHT times! Debt, inflation, etc. it's old news. Gold has gone up, and the smart people made money, but we are all still here.

Of course all chaotic systems reach their tipping point and move to a new configuration eventually. I have all the position I can afford (fully paid) in paper and physical gold (purchased from our hosts), but like Richard Russell I hope my heirs will still hold it when I am long gone. It is great insurance, but I fervently hope never to collect on it! So prepare and be ready, but don't live your life holding your breath, waiting for the collapse. There are probably still communes in Idaho you can join that have been waiting since the 70's. I don't want to live in a commune so I guess I'll just keep on as I have been. 2 months or 20 years, nobody knows but I'll hope for the latter.

Gandalf the WhiteWELCOME Sir INathan Brazil !!#1465678/11/06; 12:34:25

Nathan Brazil (8/11/06; 12:07:15MT - msg#: 146566)
Thanks Sir NB !
Now let us hear from you MORE OFTEN !

RDre: Timelines#1465688/11/06; 12:58:05

As misery loves company so does a good conspiracy theory and/or theorist...

A refreshing post from Nathan Brazil...

Federal_ReservesYikes.....I'm wiped out.#1465698/11/06; 16:17:55


The FED finally stops it rate hike barage, but even so didn't give any assurance they were done and this kept the stock markets on edge. Gold would have surged and the dollar would have tanked if the FED would have said, "We are done for the forseeable future - inflation is under control". Anyway they got the best of both sides this week and when the recession starts in the labor markets (housing/autos) they can claim they didn't over tighten.

US citizens found out that the Alaskan pipelines are 80% corroded and it will take months to get replacements. It's not like you go down to Home Depot and say, "Hey, do you have any oil pipeline in stock?". "Yeah, sure I've got 16 miles out back". No sir, this stuff is custom ordered and built by US steel. I don't think the impact has sunk in yet, but Congress is already planning an investigation. Maybe they'll take a tour of the shuttered refineries in California that make that custom gas mixes especially designed for Alaskan crude. I hear its the "good" stuff and when they refine it becomes crack.

And another terrorist plot was uncovered. Man our guys are on the ball. Apparently the terrorists discovered some technique for mixing bottled water, Grecian Formula, and lipstick to make a toxic bomb that can explode in an airplane. What is it with these terrorists anyway, what do they have against planes? I guess they figure if they blow up a few up, the planes will get paranoid and stop flying into their countries.

FlatlinerFrom the archives#1465708/11/06; 16:56:44

Found this in the hall of fame and thought that it might be worth a second read. Sure, the world is built around the US$ as the reserve, but its pretty clear that the world, over the last few months (years), has started gathering a golden reserve. It is interesting to think about how gold can be used to protect a local currency and how a local currency can be used to buy gold on the open market. The most interesting part about this concept is that it is gold friendly rather then gold suppressing.


[Editor's Note: Please read what's below carefully. This is an extraordinary analysis from the Friend of ANOTHER at a time of much confusion and uncertaintly in investment/currency markets. We are told at the outset that the largest pro-gold groups -- the Europeans and the Gulf states -- want a world currency "not subject to the performance of the American economy." In other words, a currency not tied to American treasury obligations, or the percpicacity of any other nation for that matter. That currency for those of us who have reached for the deeper truths of economy is called gold. As an American, I must say that I have never seen the concept of American hegemony explained in quite the same way before. Perhaps, my eyes were closed. I keep getting this feeling that Americans must necessarily begin to understand a new role for this country in a rapidly changing international political and economic environment -- a role for which our political and economic institutions appear ill-prepared. I will not be so presumptuous as to explain what the Friend of ANOTHER is saying, I will let you read for yourself. I do not think it could be said any better than Friend of ANOTHER says it. The fact that his analysis implies how one should design one's portfolio is a happy side benefit.]

8/10/98 Friend of ANOTHER
Michael Kosares,
It has taken some time to send this, but now I can also offer my thoughts to your questions.
Your statement: "As a matter of long term policy, do you believe that ECB will "sell" gold to defend the Euro or "buy" gold to defend the Euro? Each of course would entail a different course of action with respect to reserves of the new national bank. Along these lines,will ECB buy gold from its member treasuries, or will it simply force them to transfer it to ECB coffers if needed to defend the Euro? I am prompted to ask this question in view of your assertion that there will be much selling of Euros to defend the dollar. If the Euro, as you suggested, is being printed to buy dollars isn't this just another manifestation of the U.S. exporting its inflation? It appears to me that the Euro will need to be defended -- and not with dollars -- but with gold! "
Michael, I believe the most difficult part in understanding the modern gold market is overcome by seeing all the various political factions involved. Essentially and basically, the largest pro gold groups are those who want a world currency that is not subject to the performance of the American economy. At this moment and in this period of economic history, all currency reserves held by foreigners (non-Americans) is a debt of the US Government and by extenuation through tax collection, a debt based on the ability of the American economy to function profitability!
In essence, America has told the world that as long as the business of this country is functioning, your wealth, as represented in Marks, Yen, Pesos, etc. is backed with performing US debt. It's like saying, "as long as your neighbor, next door, does not loses his job, you will not lose all your money! Most people would be surprised at how clear this is, outside the USA sphere of influence. This, the largest of the pro gold group, is largely made up of countries with economies that have no need to sell most of their production to the US. The business of these communities would not totally fail without the American engine. Yes, they would slow down, but not collapse, as trade with other countries would continue. To add what was said before: If your neighbor loses his job, you can still trade with the other people in the town, as long as the currency system is not based on your neighbors debts!
This group, made up of much of Europe and the Middle East, is not looking for a return to the old Gold Standard, but perhaps something far better. They do not see any advantage in holding the currency bonds of one country, as a reserve asset of future payment, over holding physical gold as a reserve asset in full payment. The fact that the debt reserve asset pays interest is little more than a joke in these banking circles. Any paper currency, the dollar included, can fall in exchange value against your local currency far more than the interest received! In today's paper markets, the only true value in exchange reserves, held by a government as currency backing, is found in it's effectiveness for defending the local currency from falling against other currencies. In other words, use the reserves to buy your countries money. But, this is a self defeating action as sooner or later the reserves are used up! This fact is not lost on many, many countries around the world, as they watch their currencies plunge, lacking reserves as defense. Ask them how important the factor of earning interest on reserves is under these conditions.
On the other hand, buying gold on the open market, using your local currency, works as a far different dynamic from selling foreign bondreserves. This action takes physical gold off the market, and in doing so increases it's value in dollar terms. Gold is and always has been the chief competitor with the dollar for exchange reserve status. The advantage here comes from the fact that governments do not run out of local currencies to use in buying gold, as opposed to selling foreign currency reserves to buy the local currency on the open market. Of course, the local price of gold goes sky high, however, in this action you are seen as taking in reserves, not selling them off.
Also, as gold begins to rise against the dollar, the local gold reserves are seen as assets of increasing value, backing the local currency. Under these conditions, with a stable currency, citizens will purchase more gold as it is seen as a positive asset. Not unlike a rising stock, everyone wants an increasing investment. Contrast this action against that in Korea, where everyone sold gold as it increased in an unstable currency!
Basically, this is the direction the Euro group is taking us. This concept was born with little regard for the economic health of Europe. In the future, any countries money or economy can totally fail and the world currency operation will continue. What is being built is a new currency system, built on a world market price for gold. Michael, you are absolutely correct in that the USA will see a hyper inflation of it's currency and a gold price in dollars that reflects it. Unfortunately, for most investors, the gold price rise will be sudden and also hyper fast. as it will occur just after a rapid plunge in dollar based assets including, stocks, debt and the entire banking system. This action will destroy virtually all gold based paper assets as they are also dependent on a functioning economic system. A local gold mine, in any country, must sell production to realize a profit. The contract system they deal with will not be functioning during this time. Contrary to many hopeful investor, local treasury officials will not allow miners to pay employees or buy equipment with physical gold. When the dust does clear for mining to continue, gold will be recognized worldwide as real money, and the mining of money will, no doubt, carry Extreme taxation. Stock prices of these operations, after being priced to zero, will then double or triple in price. Zero times three equals?
Back to your original question. The Euro will not replace gold, it will evolve into a gold transactional currency. It will also price Euro gold very high, perhaps $6,000 in current dollar terms buying power. However, in actual dollar terms of the future, $30,000 US will reflect the American debt as the negative reserve asset it truly is. The ECB will have an easy time issuing Euros to buy gold from the member banks. The real political warfare will be in trying to force them to sell the gold at all, once this ball starts rolling. The Euro has, in effect already been dispersed in the form of Gold Leases not gold sales. One has only to look at the official gold holdings of most central banks to see that physical gold sales are little more than the average, with a good amount of that coming from nonEuro countries. Gold is a funny thing, it can be sold many times and pass through many countries and still remain in a CB vault. Truth Be told, some 14,000 metric/ton have been sold this way. Far more than the street thinks. Using this amount it's easy to see how certain entities have moved off the dollar standard in the last few years. If we use a future price of $6,000+US, the move is about complete.
The process: An oil country (or others) goes to London and purchases one tonn of gold from a Bullion Bank. The BB borrowed this gold from the CB (leased). The one tonn gold certificate is transferred to the new owner. The gold stays in the CB vault and the owner goes home. The CB leased this gold to the BB and expects it to be returned plus interest. The BB financed the Actual Purchase of this gold mortgaging assets of the buyer. The BB, who created the loan, then uses the cash arranged in this venture to contract with a mining company (or anyone wanting a gold/cross financing deal) to purchase production gold, using this cash to pay for it. In the eyes of the mining company, the BB just sold gold on the open market, for cash, and will purchase future production at the contracted price. The mine does not know where the gold came from, only that it was sold and a fixed cash price is waiting. Of course, most of this made more sense when gold was higher. There were thousands of these deals, structured in every possible fashion. Look to the volume on LBMA and you see where the future reserve currency is traded today!
Now when we look at this picture, who is at risk here? The Euro CB Group still holds the physical gold and will buy it back from the new owners, if asked, using printed Euros. The new gold owner has just replaced his dollar reserves with either bargain priced gold, or Euros at an exchange rate never to be seen again! Some of this was done to buy the pricing of oil in Euros. The BB owe the CBs 14,000 tons of gold that they must collect inthe future from producers or currency speculators. And they must collect it by paying what will be a, then, ridiculous price of $300/$400US, while the world market price will be, well, a little higher.
With Canada, Australia, and perhaps England having sold much gold to hold US$, much of the English speaking, IMF/dollar world is about to change. Any country, Japan, Mexico, etc., that has locked their future by selling most of their production to the American economy , is headed for a depression. Another is answering some of your mail questions and is also sending a letter. Will send it on arrival.
Thanks Michael,

melda laureThere's no spoon, but there is only one pie.#1465718/11/06; 17:05:26

suilad sir Nathan Barzel! Excellent thoughts.

And yes, I find it hard to belive myself that they would risk it all without a plan for their own wellbeing. Monetary collaps, oil collapse, it all comes out in the wash. Control was always Plan A. And it is still plan A. And I am still interested in what the plan has in store for an oil collapse.

Sir Fed Reserves, the oil market hasn't discounted that pipeline yet... not at least according to california gasoline prices.

Today's action is insane. Another week of negative gas injection! Fortunately last winter left us well stocked.

I do not want to comment on the Middle east situtation here, but clearly as the war on producers (US, middle eastern, Russian or wherever they are) hasn't born sufficient fruit, then perhaps a war on consumers is next, perhaps not US consumers, but someone will have to do with less... blood does not come from stones, but oil only comes if you can squeeze hard enough. And Gawahr is about tapped- it needs rest. (see chart)

FlatlinerAnother reading#1465728/11/06; 17:09:56

Gandalf the White, kind Sir, you posted information yesterday that caught my attention (msg#: 146546).

RE: Department of the Treasury
Financial Management Service
June 30, 2006
Total - Federal Reserve Bank-Held Gold 13,452,783.620 Troy Oz.
Please advise me WHY this gold is being held by the Fed Reserve ?

To you posting, I would like to add a ‘thought’ from ’98 with regards to this. What this really means, I do not know. I'm sure one of you old timers will have a comment or two about it. I look forward to learning more about this!
Mr. Kosares, Your friend thinks much of this gold owned by the USA. It could be used to back the dollar up to 25%, no? Many come to this thinking and hold a secure thought, that as last resort, this gold will save the day! I think, many persons never gained the understanding that the American gold is kept by the "Treasury", not the maker of your money, "The Federal Reserve". It is there for good reason, as the present world currency system is not a function of American law! If the US were to place gold in the hands of the US/CB as reserves for the dollar, the BIS could claim it! It is, as a point of contention and of no real use. I think not a war would come of this claim, if it should happen! As the world currencies are now, a "new dollar" would be needed if gold were used as reserves! The present dollar would then, truly be as "paper for the wall"!
The urgent drive to create a new "reserve currency" began in the early 80s, after the last small "gold war". The road to making this new Euro did never include gold in large amounts, until the last few years! Even one year ago, the news would say, 5% or less. Today, we speak of a much greater amount! This is interesting, yes? The BIS did "hatch" this deal in a very late fashion! The future of the Euro was found to be "weak", as the Middle East oil imports onto the continent would continue in dollars! This was so from the dollar being made strong in gold. Gold priced in dollars at near production cost, offered a "no switch currency" position, for oil. This position has been unstable for the last year, and the alternative of a switch to gold was in progress! You have read my "Thoughts" before. Now the BIS does offer to "change the rules of engagement", a real reserve currency is offered!
Few do grasp what is happening and why! They think the holding of gold reserves by the Euro is of a little point, as to what good are gold reserves? One cannot use gold as Marks or Yen to intervene in currency market to support the Euro. My friend, the BIS has played the, as you say, "big poker hand"! The holding of large reserves by the ECB and the withholding of sales from the market will not only bring the end of the London paper gold market, it will, thru a high USD gold price, "make the dollar weak in gold"! From this position, the dollar will lose the "oil backing" from the Middle East! At first, all oil for Europe will be in Euro's, then all producers want "strong currency"!
There is more: Many say, how to defend Euro without much currency reserves? If gold go to many thousands US, what will be used to bid for Euro as defense? I say, these persons will find a problem on their computer screens! You see, the Euro will start as "nothing", no holdings of size, anywhere! The dollar is held as reserves as "the stars in heaven"! It is to say, "the dollar will bid for the Euro", not "the Euro will bid for the dollar"! All currencies will "flow into the Euro for trade". But, if the Euro becomes so strong, how to compete in world trade? It will be the price of oil that will make the "trading field" level! The soaring US$ price of gold will make even a 10% Euro reserve be as 100% today, in USD! Oil will become, very, very cheap in Euros and allow that economy to do well! Many other countries will see this and also want to join the new "world reserve currency" that has become"the new world oil currency"!
The politics of the ECB? It is as a "side show"? We watch this new market, yes? Sir, my words take time. I did receive two E-mail's from you.
Thank you

melda laureTanker shortage- it's a longer supply line.#1465738/11/06; 17:21:06

I would think that if a tanker can make the Alaska-LosAngeles trip in 2 weeks then it might take a few more weeks to make the Venezuela-Los-Angeles trip, or wherever they are going.

They need more tankers, or bigger tankers, or something to keep the rate (barrels per week) of delivery the same, or so I would guess.

Flatliner@Nathan Brazil#1465748/11/06; 17:46:55


To many, it seems the sky is always falling when it comes to the US$. But it just may not be as drastic as one might believe. More currency exists then there are leaves on trees and its all found function in the world economy to the surprise of gold bugs everywhere (self included). One day, what people count as wealth, some mutual fund or stock account, will find that it will have a negative flow of capital and it will not maintain its value as it has over the last 20+ years. That is, all those people that used paper markets to save (for retirement) will start drawing on their savings expecting it to provide what they think of as being wealth for the spending. What I find interesting is that when someone looks at their account today, that is fat with zeros, they have no idea that in 5 to 10 years when they are drawing on their savings - everyone else in the world will be doing the same thing. At that point, there will be a great awakening with regards to the real value of those accounts. Also, as those that are working today wake up to realize that every dollar they invest will not tip the markets into surplus (that would drive up prices) they will not use paper plays for retirement investments.

Now, what about a panic by the older public with regards to getting their money out of these long term investments before all value is lost? We all know that if the herd moves one way too quickly, the entire play falls apart. Everyone knows this, and my bet is that it will not be allowed. That's right, we'll probably find new laws placed on the books before too long that will prevent people from taking their money out of their accounts to fast. I would call them unfavorable taxes. This, may make it so that people will hold those dollars longer thus extending the bubble called paper investments (or perceived wealth) just a little longer.

Everyone around the world needs to have a currency to use in the economy. The US$ is so ingrained that it may take a long time for replacements to build confidence from the people and find their way towards replacing it. The signs are many that gold has started to fill that roll (indirectly) but only to the Central Banks of the world (and gold bugs). We all watch as this new roll for gold slowly unfolds on the world markets. There is no need for panic selling of the US$ or panic buying of the Euro (or any other currency) – they all function quite well for just about anything except saving.

Following in the footsteps of giants is quite often a wise thing to do. Seeing that gold is being used as the backbone for this gradual transition, those that wish to save, may find that gold is a fine and SAFE way to save into the future.

BoilermakerGoldilox msg#: 146561#1465758/11/06; 17:52:45

Goldilox, Please let me try to answer the question you posed to BB regarding tanker reassignment from Valez, ALaska to US West Coast service to other loading sites.

The round trip for a tanker from Valdez to US West Coast destinations is about 12 to 15 days. The same round trip from the Gulf Coast is about 41-45 days.

"Voyage Time from the US Gulf Coast to California
Let us consider the logistics of a voyage from the USGC to California via the Panama Canal. To move
product from the USGC to California on a tanker, an operator must: accumulate the cargo, load the vessel,
sail to Panama, wait for a slot in the canal, traverse the canal, sail to either Los Angeles or San Francisco
and unload the cargo. After the cargo is accumulated, a typical trip to Los Angeles takes 20.5 days while a
trip to San Francisco requires 22.5 days. Because the vessel must return to the USGC for the next cargo,
the typical round-trip time requires a total of 41 to 45 days. A more detailed breakdown of a typical trip is
shown in Table 2."

Voyage times (round trip) from the Mid East would be somewhat longer, perhaps 50-55 days. Hence the same volume of oil supplied by tanker to the West Coast will reqire 3 or 4 times the tanker capacity and roughly the same cost multiplier for the longer trip.

Paper AvalancheFor what its worth.....#1465768/11/06; 18:57:04

Anyone notice a new poster with a bent to first state how he (presumably) is 100% pro gold and then closes with his posting with a sentence or two that would make gold advocates implicitly seem like "crazies?" I won't name names but I believe one may have recently started lurking and "contributing" here recenlty. Think psyops to disuade the masses who may be viewing this site for the first time.

I may be wrong, I often am.

Have a great weekend!

Ten BearsFalse dichotomy#1465778/11/06; 20:33:36

"Fortunately there really does seem to be a group of elites attempting to control the world through its financial system. That was a very very bad idea in the beginning of course, but now we are at the end of that road and there is no turning back."

There are alternatives.

"Insanity: doing the same thing over and over again and expecting different results".
Albert Einstein,

The Invisible HandBush, Blair should apologise to Iran: professor#1465788/11/06; 20:40:34

The Invisible Hand (8/10/06; 06:44:31MT - msg#: 146533)
A Crude Awakening for Women (and Men)
Reparations for Iran
by ROSEMARIE Jackowski
(Thursday August 10 2006)
"One has to ask the question, how many civilians have been killed by Iran with nuclear bombs?"
On August 19, 1953 the government of the United States executed a coup d'etat in Iran
The United States owes reparations to the people of Iran. How much should be paid for the 1953 coup? How much is a democracy worth? Here's a thought. Suppose the U.S. gave all of its nuclear weapons to Iran. Would that be a win, win, win scenario? The world would be safer because the only nation that had ever used nukes would no longer have any. The people of Iran would be compensated for the 1953 coup. The U.S. taxpayers would be spared a bill for reparations.
Saturday, August 12, 2006
According to IRNA, the 60-year old professor [Jean-Pierre LEHMANN] said the Bush administration sermonises about freedom and democracy to Iran, but it "should it not, at the very least, acknowledge that democracy in Iran was aborted by the UK and the US in 1953 with the overthrow of Mohammad Mossadegh." "The US-UK then imposed and strongly supported the dictatorial monarchical rule of Mohammad Reza Pahlavi as shah of Iran until he was finally overthrown by the Iranian people in 1979," he said.

Who's Professor Jean-Pierre LEHMANN?
World trade talks fail over impasse on farm tariffs
July 25, 2006
"I think this would seem to lead to the collapse of the multilateral trading system," said Jean-Pierre LEHMANN, founder of the free-trade Evian Group based in Switzerland.

Mr. GoldfingerLebanon cease fire. Now who will come up with the billions for reconstruction?#1465798/11/06; 21:03:14

The answer is, Uncle Sam is.
How are they gonna do it? Inflation or sell the gold in Fort Knox? I think inflation will be the route to take. After all it is what got us here to begin with. After 50 years of success why make a change in policy?
This is a long way from over. We have entered another relaxation of monetary policy period. The interest rate screws weren't tightened enough this time. Inflation will rear it's ugly head again.
In the 80's under similar conditions gold exploded to $850/0z. My mortgage came due for renewal at 19.5%. My mortgage was small, although the monthly payments nearly doubled, it was still a small bill to pay. Others weren't so lucky, housing prices halved in some cases. People just walked away from the house, leaving the keys at the bank.
The key here is 19.5% interest. It took that kinda interest rate to kill the last inflationary spiral. What will it take this time as we chase the last of the declining energy resources into the pits of zool. Maybe 25% or 30%. What will be the price of gold then?

The Invisible HandAnybody speaks Russian and/or Canadian?#1465808/11/06; 21:05:33

This seems to say something important for our discussions.
But my English (or more precisely my (lack of) intelligence) cannot make it anything of this.

August 11, 2006

Economic Prognosis for August


The Russian ruble under the tsar could have rightfully been considered a freely convertible hard currency, but the ruble has never been a leading global currency – it is hard to imagine German or English firms dealing with each other in terms of Russian rubles, whatever the ruble's content of solid gold may have been. Thus, despite its trumpeting of the new status of convertibility for the ruble, Russia will continue to remain apart from the other countries of the G8, all of whom have currencies of leading global importance (with the possible exception of Canada, with its Canadian dollars).
The strengthening of the ruble can also be read as an ideological strike. In July the State Duma scheduled a second reading of a bill that would make it illegal for government deputies and the media to discuss prices in dollars. Though the tone of the bill was softened somewhat before the second reading (for example, it will be permissible to indicate the amounts of deals between foreign firms in terms of foreign currencies), its spirit remains unchanged: it still dictates to journalists the form of currency in which they should supply economic information to their readers. If journalists must be forcibly weaned off speaking in dollars, what does that say about everyday citizens? By systematically devaluing the American currency, the government is forcing people to abandon it – and to turn instead to government gold reserves.

Gandalf the WhiteAnd, THANK YOU --- Sir Flatliner ------- <;-)#1465818/11/06; 21:19:41

Visits to the Castle ARCHIVES is very rewarding !
Like ANOTHER said, "We shall see together."

Paper AvalancheBTW#1465828/11/06; 21:30:48

I am not referring to Mr. Nathan Brazil.

Excellent post, sir Brazil (welcome and thanks for an excellent and insightful first post). I agree. We must be careful what we wish for.


The Invisible HandMPC of BoC runs from dollar#1465838/11/06; 21:43:58

MPC = monetary policy committee
BoC = People's Bank of China
A CHINESE ECONOMIST, Fan Gang, who said at the 2005 World Economic Forum in Davos, Switzerland, that China should switch the yuan's dollar peg to a basket of currencies, will help set the Chinese central bank's monetary policy. Fan, director of the National Economic Research Institute, is the ONLY ACADEMIC on the 13-member monetary policy committee of the People's Bank of China.$@ (Bloomberg)
FAN Gang, the economist who said at the 2005 World Economic Forum in Davos that China should switch the yuan's US dollar peg to a basket of currencies, has been picked to help set the Chinese central bank's monetary policy, Bloomberg News reported.
The committee meets quarterly to assess monetary policies and recommend changes. The State Council decides on policies including currency values and interest rate changes recommended by the central bank's monetary group.
"Fan is a supporter of market reforms, although his views are moderate, which may indicate a trend toward more advocacy of the free market" on the monetary policy committee, said Zhong.
Fan, 52, is a professor at the Chinese Academy of Social Sciences, a government-backed think tank, and Peking University. He is also a director of the National Economic Research Institute.
At a CASS conference in July, Fan said China could allow the yuan to appreciate 3%-4% a year to help correct global imbalances. He said at the time the yuan shouldn't appreciate too much and favored a managed float rather than free float of the currency.
Gates, Buffett, China 'run from dollar'
WorldNetDaily | February 3, 2005

DruidThe Invisible Hand (8/11/06; 21:05:33MT - msg#: 146580)#1465848/11/06; 22:41:12

Druid: This is the Russian version of creating a demand for a state-sponsored currency by decree thus creating "value" where it might not ordinarily exist. The HUGE caveat here is in the ongoing composition reference the CB reserve portfolio and how it is valued.
USAGOLD Daily Market ReportPage Update!#1465858/11/06; 23:02:30">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold down slightly after choppy day of trade

August 11 (from Reuters) -- Gold fell on Friday in New York and closed at its lowest level since July 26, when a rally early in the session prompted speculators to swoop in and grab profits ahead of the weekend, traders said.

In London and for much of the New York session, spot gold had rebounded as buying interest resurfaced on price dips and traders saw a limited downside from an aircraft bomb plot foiled a day earlier.

COMEX December gold contracts finished $1.60 lower at $644.40. The range ran down to a low at $636.50 from a $655.70 high.

New York gold dealers said they were at a loss to explain the sudden sell-off. Some blamed technicals, others cited selling in base metals, and some just attributed it to crowd psychology on a slow summer Friday.

With volumes thin during the summer, traders said it was easy for short-term players to turn the market rapidly. "My best guess is crowd psychology. It seemed like there was a big flock of selling. There was pretty steady selling in precious metals for a couple of hours," a desk broker said.

But longer term players said they think sentiment remains bullish, with gold likely to move towards the upper end of recent ranges.

An expected rise in oil prices and a drop in the dollar in coming months should lift gold, Barclays Capital said.

"We expect the reaction in the oil market to have been somewhat overdone and we see the potential for oil to test new highs in the months ahead on a combination of strong demand, disappointing supplies and heightened geopolitical risks."

Michael Widmer, precious metals analyst at Macquarie Bank, said, "Going forward ... because you have got the slowdown in the U.S. economy, because you have got interest rates peaking and because you still have inflationary pressures -- it will become more challenging for the U.S. dollar to stay strong. And that's positive for the gold price."

Gold often moves in the opposite direction of the dollar as the metal is generally seen as an alternative investment. Safe-haven bullion is also seen as a hedge against inflation.

"We recommend investors use any further dips in gold to build medium-term long positions... We still see gold materially higher on a three and twelve month view," UBS Investment Bank said in a daily note.

(from MarketWatch) -- "Strong resistance in front of $655 continues to cap gold short-term," said James Moore, metals analyst at TheBullionDesk. However, signs of physical interest during the European session are a positive indicator, "particularly ahead of the Indian festival/wedding season, with a period of relative price stability likely to encourage more interest.

"Overall sentiment remains firm with our view of plus $700/oz by year-end still on course, although the market might have to wait till early-mid September before breaking out of its current $605-55 range," said Moore.

"Gold, at these levels and for the next week, is a buy for investors," said Ned Schmidt, editor of The Value View Gold Report.

H40B 2 me -R.
---(see url for full news, 24-hr newswire)---

TownCrierHEADLINE: Why it makes sense to buy gold now#1465868/11/06; 23:11:13

(MoneyWeek) August 11, 2006 --

As a rule, money flows where it's treated best. If interest rates are high, then gold performs poorly relative to money. If interest rates are low, money flows toward gold. When interest rates are zero, gold becomes a no-brainer

"But wait," you say. "Interest rates soared in the 70s… how did gold manage to run from $100 to $800 during that time?"

Yes, interest rates soared in the 70s… but let's look at the "real deal" you get for your money. Let's consider the effects of inflation…

The "nominal" interest rates you might see advertised at your bank or in the newspaper don't give the full picture. Here's why: if the prices of the items you buy on a regular basis, like food, gas and accommodations, are rising at 5% and - at the same time - the bank is paying you 5% interest on your savings, the bank is not compensating you for holding your wealth in cash instead of gold.

In this case, economists would say your "real" interest rate—the interest rate AFTER inflation—is actually zero.

Today, we see nominal interest rates advertised at around 5%. At the same time, inflation is around 5%… and Federal Reserve chairman Ben Bernanke says he's almost done raising interest rates... Real interest rates are close to negative… and the smart money is shifting from cash and into gold.

You should own some gold, even if it is purely to lower some of the risk in your investment portfolio, as gold and stocks often move in opposite directions. If you're not there right now, it's time make the move.

^---(from url)---^

A very nice entry-level piece of advice for the garden-variety mainstream reader and investor.


SundeckBiggest oil reserves on the planet? Venezuela starts certifying Orinoco belt...#1465878/12/06; 06:19:31


Venezuela on Thursday began certifying around 235 billion barrels of crude reserves in the vast Orinoco Belt as part of an effort Venezuela says will give it the planet's largest oil supply. Venezuela, the world's No. 5 oil exporter, hopes the process will give a massive boost to its reserves at a time when spiraling energy prices have left oil companies scouring the globe for black gold.

"We are sure that we will incorporate 235 billion barrels of oil to our booked reserves," Energy Minister Rafael Ramirez said during a ceremony to celebrate the opening of the certification campaign in eastern Venezuela.

"Thanks to this effort, Venezuela will become the country with the largest reserves on the planet," he said.

Sundeck: 235 bilion barrls sounds a lot, but really only about seven and a half years supply at the current rate of global consumption of about 83 million barrels per day. And this is leaving aside the "energy balance" much energy it takes to extract and refine this tary stuff...not to mention the environmental problems associated with the process.


SundeckIs the Bank of India buying gold?#1465888/12/06; 06:43:21


Total forex reserves moved up by USD 1.772 billion from July 29 to August 4, 2006. As on August 4, total reserves stood at USD 165.795 billion, as per weekly statistical supplement of RBI on August 11, 2006.

Foreign currency and assets during the week rose by USD 1.394 billion to USD 158.465 billion. Foreign currency assets expressed in USD terms include the effect of appreciation/depreciation of non-US currencies (such as Euro, Sterling and Yen) held in reserves.

The reserve position in the IMF increased by 1 million to USD 766 million during the period under consideration.

The Special Drawing Rights (SDRs) remained unchanged at Rs 330 million as on August 4, 2006. Similarly, the country`s gold reserves increased by USD 377 million to USD 6,557 million.

Sundeck: Gold reserves up US$377M in one week when the price of gold increased by only about 2%, equivalent to an MTM increase of about US$120M on their reserves??

Did they buy US$250M in gold during that week? That's equivalent to about 390,000 ounces...or a bit over ten tonnes.


GoldiloxBP's Pipeline About-Face#1465898/12/06; 08:19:21


After saying last weekend that it would take all of its Prudhoe Bay output offline for pipeline repairs, BP has done a major about face - now saying that it plans to keep about half of its flow going. Change of heart? Yes, and perhaps inspired a bit by plans of multiple agencies (including the State of Alaska and CONgress) to investigate to see what's really going on.


Was BP's original announcement a test of the "Cry Wolf" process, or just a poorly researched initial reaction?

GoldiloxTerror Plot Suspicions and reactions#1465908/12/06; 08:49:30


My eldest daughter sent a rather telling email on Friday. "Do you think the 'terror plot thwarted' headlines are real? I don't think I do..." she wrote. Yes, the headlines are real, but was there another agent provocateur pushing things along? Some blogs and Middle East sources point that direction.

While US media, like Black News Weekly headlines "Terror plot to blowup planes may be a hoax." the travel mess at airports has been remarkable.


Without actually analyzing the veracity of the story, the media blitz itself and the TSA response was socially devastating. I was attending a conference about 500 miles from home, and those who had to fly to their various home cities expressed everything from rage at the media-fingered perps to rage at the machine and it's unabashed Cry-Wolf prowess. My less stressful reaction was probably weighted by the fact that I used the conference as a "test" for my new "very comfortable" motorcycle seat and had already planned my leisurely ride home on the scenic Coast Highway.

One thing I noticed, after a quick check of the reader response at CNN and BBC. By far, the near unanimous response is, "Strip me naked, if you must, but make flying 'safe' again."

While I am sure that more post-adrenal analysis will produce thoughts on "cause and effect", the initial responses have been a good study in the power of mass-induced fear to illicit mass acceptance of "martial law". . . and of course, we experienced another Web bot hit with the predicted "major travel restrictions".

The other very interesting observation is the containment and actual reduction of PoG during this very stressful period. Unlike the initial Iraq invasion, which gave us a 25% spike, PoG was in reverse proportional lock-step with the Dollar's strength on Thursday and Friday, as if the media terror blitz was non-eventful.

P.S. the previous posts' reference was also from

Chris PowellBrazil's central bank intervenes in currency market to support U.S. dollar#1465918/12/06; 08:54:20

Brazil Real Weakens
as Central Bank
Steps Up Dollar Purchases

By Katia Cortes
Bloomberg News Service
Friday, August 11, 2006

BRASILIA -- Brazil's currency weakened after the central bank stepped up dollar purchases in a bid to boost foreign reserves and slow the real's appreciation.

The bank bought the U.S. currency in the spot market for 2.1620 reals per dollar in an auction today. The bank has offered to buy dollars on a daily basis for more than a month.

"The bank is stepping up purchases because it aims to prevent the real from gaining too much at a time when investors seeking higher rates are approaching Brazil," said Alan Gandelman, a partner at Rio de Janeiro-based AgoraSenior Corretora, Brazil's biggest stock exchange.

The real fell 0.4 percent to 2.1650 per dollar at 3:40 p.m. New York time, after most trading in Brazil had ended, from 2.1565 per dollar yesterday. The currency has gained 9.2 percent in the past 12 months, the best performance among the 16 most-traded currencies tracked by Bloomberg.

The dollar futures contract for Sept. 1, 2006, settlement, the most-widely traded on the BM&F commodity and futures exchange in Sao Paulo, changed hands at 2.1755 reais per dollar from 2.1705 yesterday.

The real also fell today after a U.S. report showed retail sales in the world's biggest economy rose more than forecast in July, fueling concern the Federal Reserve may have to lift borrowing costs again this year. Higher U.S. rates reduce the spread, or extra yield, on assets in riskier emerging markets.

"U.S. retail sales rose more than expected, which goes against the thesis that the U.S. economy is loosing steam," said Tony Volpon, chief economist at Sao Paulo-based CM Capital. "A stronger economy prompts investors to migrate to the U.S. seeking higher rates, helping the dollar to strengthen and other currencies, like the real, to weaken."

Investors took advantage of the real's rally this week to an almost three-month high to sell the Brazilian currency, said Carvalho. For the week, the real has gained 0.8 percent against the dollar.

"It's very natural for the real to fall a bit today after rising all week," he said. "Some investors are taking the opportunity to take profits and are probably using the stronger-than-expected retail numbers in the U.S. as an excuse."

The real may resume its rally in coming days as strong growth and falling interest rates boost investor confidence, said Francisco Carvalho, currency desk manager at Liquidez Corretora DTVM.

A report released today showed inflation in Latin America's biggest economy held at a seven-year low last month. Annual inflation, as measured by the benchmark IPCA index, stayed at 4 percent in the 12 months through July. Slower inflation helps preserve the value of real-denominated assets.

"The scenario is favoring a continuing appreciation of the real against the U.S. dollar," Carvalho said in a phone interview from Sao Paulo. "Investors' risk perception has improved, we continue to have strong inflows from exports, and the perspective is for interest rates to keep falling."

Earlier today, the real traded as high as 2.1544, its strongest level since May 17.

The yield on the benchmark zero-coupon, local-currency bond due January 2008 rose 4 basis points, or 0.04 percentage points, to 14.53 percent, according to Banco Pactual.

On foreign markets, the yield to the 2015 call date on Brazil's benchmark 11 percent bond due in 2040 rose to 6.56 percent, while the yield to maturity rose to 8.373 percent from 8.351 percent yesterday, according to JPMorgan Chase & Co. The bond's price, which moves inversely to the yield, fell 0.30 cent on the dollar to 129.45.

GoldiloxDollar/Real story#1465928/12/06; 09:11:57

@ CP,

Isn't interesting how the dollar paper market has evolved from "safe-haven" to a derivative bet on short-term foreign policy success in only a few short years?

This does not bode well for paper marekts in general, IMHO.

Goldilox101 Uses of Chaos#1465938/12/06; 09:38:22


The New Middle East was conceived on the lawn of the White House in September 1993 when Yitzhak Rabin, Shimon Peres, Yasser Arafat, and Bill Clinton shook hands. It was taken up by American, Iranian, Iraqi, Israeli, and Lebanese leaders among others, all of whom have felt at one point or another that it was theirs to control. It now veers between stillbirth and the arrival of Rosemary's baby. The circles of chaos that have enveloped countries across the Middle East, and that threaten the globe by threatening world energy supplies, would seem at the moment to be converging around an Eastern Mediterranean epicenter that is no stranger to cataclysmic disasters, both God-inspired and man-made.

With George Bush still insisting on the need to fight "Islamic fascism" to the bitter end, Labor Party Defense Minister Amir Peretz imploring Israeli soldiers to turn southern Lebanon "to dust," and Iran's Mahmud Ahmedinejad declaring the need to wipe Israel off the map, the hubris, arrogance, and utter disdain for human life that has brought the Middle East to its latest precipice continues to harden the hearts of leaders and peoples alike. And all will be the losers because of it.


For those interested, I find this professor's analysis to be a reasonably dispassionate overview of the cauldron that the NeoCONs call "the arc of instability" in a media that seems currently embroiled in finger-pointing (or would that be "painting"?)

I'll keep the focus short so this doesn't send us into OT political hell. It might still be far enough off-topic to be worthy of deletion, so it is merely intended as a reference - not a discussion point.

USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips...#1465948/12/06; 14:51:12">gold -- a global calling card
GOLD FINGERA few of my thoughts........#1465958/12/06; 16:47:37


A.) Why do we still talk about political leaders here in a GOLD discussion room? Just wondering because my post was censored! P.S..I think it's still relevant to the PoG and the world economies.

REF:Goldilox (8/12/06; 09:38:22MT - msg#: 146593)

B.) You would be singing a different story if your daughter was on the Jet along with the terrorist who did not get caught! NO CHANCES regarding these_______!!!

Goldilox (8/12/06; 08:49:30MT - msg#: 146590)

C.) Gold will over time hold more value and suffer less depreciation and taxes than other paper investments. I agree!!

REF:TownCrier (8/11/06; 23:11:13MT - msg#: 146586)

D.) Looks like they finally came to an understanding....after how many killings? What a waist. Can't people just get along already.

REF:Mr. Goldfinger (8/11/06; 21:03:14MT - msg#: 146579)

E.) Small countries need to stop provoking and work with everyone in the International community. After all look what happened to IRAN! WEAPONS OF MASS DESTRUCTION....JOKE! OR PERHAPS WE WENT AFTER THE WRONG COUNTRY!

REF:The Invisible Hand (8/11/06; 20:40:34MT - msg#: 146578)

F.)I think the world is Looney over all!!

REF:Paper Avalanche (8/11/06; 18:57:04MT - msg#: 146576)

G.) Very good points. I do not ever see the Dollar's Demise. This is the pride of the country. I do think it will have it's ups and downs like most financial tools. I think we all need to take responsibility and watch our over consumption and waist and be a little gentler with the world and its resources. A penny saved is a penny earned...same with commodities and most things..CONSERVE!

Nathan Brazil (8/11/06; 12:07:15MT - msg#: 146566)

I am not down on this country...I am down on the people who take for granted all the freedoms and liberties we have. As you can see...things are changing!

Have a fabulous weekend!

I am going prospecting..... GF

GoldiloxChange What Story?#1465968/12/06; 18:50:00

@ Gold Finger?

I detect some serious resentment in your post. Join the club. The best of us occasionally run afoul of guidelines.

A. I specifically warned that the Common Dreams reference might be too far afield, and I would not have been offended at all if admin agreed and pulled it. I just thought it was the calmest, least political analysis I had read on the most recent ME quagmire, and suggested it as reference for cooler heads, rather than a topic of discussion.

B. As to George's and my observation of the public frenzy over the "toothpaste fairy," you seem to have missed my point completely.

I specifically said I was NOT judging the veracity of the story, but observing the media frenzy and its effect on the mood of the "markets" and public in general. Remember Gen. Tommy Franks Martial Law warning of not too long ago, whe he said:

"The next victim of WMD is the US Constitution".

E. Perhaps we went after the wrong country, indeed! Do we even dare to address the real weapons and drug sources that prop up the puppet regimes? I think not. The "intel" world would lose all their sources of covert funding and information in the seedier destinations.

G. Potential dollar demise is a great setup for the NWO's desired reassociation into "trading blocks", Euro, APAC, Amero, and potentially "Lafrica", if they survive the growing global unrest. Now if all the "little guys" will just:

"Sit down, Sit down, Sit down!
Sit down, you're rockin' the boat!"

The dollar could likely be a casualty of such "emergency realignment" and make way for a new non-constitutional regime. It's been done so many times before. The "It can't happen here" mentality is more likely to pave the way than stop it.

This is the point where PMs might sever their association to the paper dollar (or whatever) and assist the holder in a transition to whatever emerges - Is this fantasy, or insuring against a worst case scenario?

As Pogo so aptly put it, "We have met the enemy . . ."

Happy prospecting!

Mr. GoldfingerI SUPPORT THIS POSTER.#1465978/12/06; 18:53:54

Goldilox (8/12/06; 18:50:00MT - msg#: 146596)
Change What Story?
@ Gold Finger?
Not only does he have a good moniker he is a decent guy.

mikal@Goldilox#1465988/12/06; 19:28:22

Keep up the good work brother.
GOLD FINGERI LIKE THE DISCUSSION!#1465998/12/06; 20:51:34

REF:Goldilox (8/12/06; 18:50:00MT - msg#: 146596)

I completely understood your point and offered a brief counter point. The idea that we are all so venerable to world conditions and how they affect us personally is very interesting to me. I like all conversations and just offered a side comment to a few of the ones I've seen here.

So do not take it personally.

I meant/mean no harm.

I guess some are hyper sensitive in times like these. For me...I am at a position to gain more wisdom from all with good debate and discussion!



The Invisible HandThe new gold-regime (status) #1466008/12/06; 20:57:10

or the global colonialisation of the dominant

rijk = empire in Dutch

daalder (in Dutch) (thaller in German?) would be the
etymological origin of "dollar"

rijks-daalder = the imperial dollar

In this globalising world, all export oriented states have to settle their trade, to an increasing extent, in rijksdaalder.

This results in "more" use for the rijksdaalder-currency ...always at the cost of the nation-state's own currency.

Wealth is being produced (and delivered) INTO the global rijksdaalder-system,
whilst the internal economies and their currencies are increasingly being neglected (less interesting-profitable).

The result is that monetary policies of non-rijksdaalder currencies become less and less effective for creating wealth in these non-rijksdaalder currencies.

All wealth goes to the global(ising) rijksdaalder-system and this is a self-feeding process (exportitis).

The globalising rijksdaalder-regime (rijksdaalder-financial capitalism) creates permanent and global empoverishing wage-competition.

One's US rijksdaalder currency is supposed to tell what one's wealth is.
This has become completely absurd. Study the Japan situation (world economy N°2) as the most blatant example.

All the above systemic is the one and only reason that the rijksdaalder-currency must remain strong in gold...or the entire rijksdaalder-dominance collapses.

Simplified, it boils down to : The more "real" global wealth is being created, the more rijksdaalders come into the system....and...the more rijksdaalders that come into the system, the more wealth is supposed to be represented.
It goes without saying that this so called *-rijksdaalder-wealth-* (system) is increasingly being questioned. Is one "really" wealthy with more rijksdaalder-digits...+ a declining purchasing power...+ a killing global wage competition ???

WHAT exactly is backing the supposed rijksdaalder-wealth in this globalising rijksdaalder-dominant-system ??? Is it a rijksdaalder, only strong in gold ...and "weaker" in all the other tangibles (oil/gas) ???
Is the rijksdaalder backed by an all embracing financial industry ...or the illusionary reserve-status of this rijksdaalder-unit???

Can the existing rijksdaalder-regime (financial capitalism)continue to organise empoverishing global competition(aggregate economy) forever ???

Export or surplus wealth must also result in internal investment and return (wealth creation) without feeding the rijksdaalder-system. Otherwise the broad internal wealth building will always lag and perpetuate the murderous (empoverishing) global competition.

This system is the fundamental cause for the rise in global imbalances that cannot be corrected (balanced) without a fundamental (transitional) change.

That change is the new gold-regime (status) !

Paper AvalancheMy Point Hopefully Made......#1466018/12/06; 21:15:39

The psyops shill makes an appearance yet again today.

I am the flashlight on the cockroaches (FWIW).

BTW, the whole thing with the Euro having a greater value of reserves in gold rather than paper "reserves" does now prove interesting.

Good night little shill.

the Paper Avalanche

GoldiloxOn Vulnerability#1466028/12/06; 21:34:37

@ Gold Finger,

I just didn't want you to leave with the impression that because I focused on the effects of the accompanying media circus, I was not empathetic to the major airline disruption itself, nor was I completely dismissing the obvious risk factors.

We are certainly experiencing some VERY volatile times, both in the markets and in general survival, itself.

Most of us can do little about any growing turmoil beyond some simple efforts at increasing our levels of watchfulness and preparedness.

As most martial arts dojos teach, an important preparation for expected conflict is to avoid the most dangerous outbursts when possible.

To paraphrase Black Blade,

Reduce or eliminate debt.
Build a stash of emergency water, food, and transactables.
Learn to duck, and stay light on your feet
Don't bury all your PMs in just one hole!

GOLD FINGERSomthing to consider#1466038/13/06; 02:18:36

This was free to view on msn so I thought you might like to read it. This kind of violence could really bring a lot of grief to countries and Governments~
The Invisible HandIs Gordon Brown also a fraud?#1466048/13/06; 02:46:25

According to knowledgeable sources in the UK and other countries, the Tony Blair government, under siege by a Labor Party revolt, cleverly cooked up a new
"terror" care to avert the public's eyes away from Blair's increasing political woes.
what prompted Murdoch and Blair to hype a new global "terror" threat was what Murdoch learned from eavesdropping on the phone calls of Prince Charles' staff at the future king's office, home, and limousine. The eavesdropping revealed that Charles was working with Chancellor of the Exchequer Gordon Brown, who is to the left of Blair, to conduct the same type of political maneuver that John Major used to oust Margaret


Wasn't it Gordon who proposed to sell IMF-gold was and remains controversial,
Does this not concern a big amount of US of A gold in the IMF?

Goldilox"Audited" Financial Report of the United States published by the US Treasury#1466058/13/06; 08:28:57


The Official Treasury "audited" statement of the financial condition of the USA presents the real financial position.

The present Administration claims a $296 Billion dollar Federal Budget Deficit predicted for 2005. The audited statement reveals a Federal Budget deficit of 720 Billions for 2005.

This audited document from the US Treasury is reported to say that US Government debt is $49 trillion. Assuming this then it is very close to a time when interest on US debt will exceed domestic spending.

Representative Jim Cooper of Tennessee, a member of the House Budget Committee has arranged to have this report reprinted for interested parties.


Once debt service exceeds income, things get a little tricky.

Chris PowellWhat the Fed calls communication is really just manipulation#1466068/13/06; 11:43:56

1:16p ET Sunday, August 13, 2006

Dear Friend of GATA and Gold:

The Associated Press story appended here
says Federal Reserve Chairman Ben Bernanke
"wants to improve communication" about the
Fed's thinking on interest rates and the
economy so investors, businesses, and
consumers "may be inclined to respond the
way the central bank wants them to."

But if Bernanke ever REALLY wants to
communicate "what the Fed is thinking,"
there is a very easy way to do it: Fully
open to the public the proceedings and
records of the Federal Reserve.

The AP story also reports that Bernanke
has already foreclosed anything close to

As GATA consultant Mike Bolser has often
suggested, the Fed's "communications
policy" may be more important than any
actual intervention in the economy by the
Fed, since, if "communications policy" is
successful, it can induce markets to act
on false pretenses and let the Fed
accomplish its goals without any cost in
actual policy, like raising or reducing
interest rates when raising them to
protect the dollar would sink the economy
and reducing them to protect the economy
would sink the dollar.

This stuff isn't "communication" at all.
It's manipulation.

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

* * *

Fed Chief Wants to Improve Communication

By Jeannine Aversa
Associated Press
Sunday, August 13, 2006

WASHINGTON -- Former Federal Reserve Alan Greenspan left the door slightly ajar. His successor, Ben Bernanke, wants to open it a bit more. If investors, businesses, and consumers have a better grasp of what the Fed is thinking about interest rates and the economy, they may be inclined to respond the way the central bank wants them to. And that can help the Fed do its job: keeping the economy and inflation on an even keel.

Bernanke, who took over the Fed in February from the famously opaque Greenspan, wants to improve the Fed's communications with Wall Street and Main Street. It's not clear at this point, though, exactly how he will go about doing so.

For investors, what Bernanke and the Fed says about the economy or other things can be just as important as its interest rate decisions. Wall Street dissects every word, and the market can turn on a simple phrase.

For the Fed, getting its message across can be a challenge.

A former economics professors, Bernanke came to the Fed with a reputation for plain speaking dating to his days as an economics professor. His communications since coming to the Fed have been anything but. The result: skittish investors have sent stocks on a roller-coaster ride.

Experts say it will take time for investors to get used to Bernanke and for Bernanke to sharpen his signaling system.

In the meantime, there are steps that the Fed itself can take to be more open and understood, experts say.

"Right now there is certainly a need for improvement and room for improvement," observes Anthony Sabino, a law professor and business expert at St. John's University. "We demand transparency from private enterprise. Why does the central bank have to be so shrouded in mystery? They got to do better."

The Fed has begun a discussion of ways to improve communications. No decisions are imminent, although Fed watchers say a wide range of ideas are being explored.

A small committee is going to help the Fed "think through our entire range of communications, all aspects ... and try to develop a better, more explicit, and more useful form of communication," Bernanke told Congress last month.

Some Fed watchers suggested that the central bank issue economic forecasts quarterly, rather than the current twice a year. Others recommended including more elements in the forecasts beyond the current projections for economic growth, unemployment and core inflation.

Another suggestion: revamping the policy statements released at each of the Fed's eight scheduled meetings a year on interest rates to do a better job of explaining the Fed's actions and laying out policymakers' thoughts on economic conditions and the future course of interest rates.

On the road to clarity, Fed policymakers need to proceed with caution. Too many changes too soon can backfire and muddle the message, some warn.

"The Fed needs to go one step at a time," advises Lyle Gramley, a former Fed board member.

Some economists suggested adding more details and context to the minutes that now come out three weeks after the Fed's closed-door meetings on interest rates. Last year the Fed sped up the release of the minutes. Investors and economists applauded that move saying it provided them with more timely insights into policymakers' thoughts.

Bernanke believes the Fed's quest to be more open would be aided by numerically spelling out the acceptable bounds of inflation.

The central bank doesn't have a formal "inflation target" now, although Bernanke and other Fed members have suggested their current comfort zone is when "core" inflation -- excluding food and energy prices -- hovers in an annual range of 1 percent to 2 percent.

If investors, consumers and businesses feel confident the Fed will keep prices stable, they may be less inclined to act in ways that could aggravate inflation, may worry less that inflation will eat away at their investments and paychecks and feel better about longer-term financial planning.

Should the Fed televise its interest rate meetings?

Bernanke -- along with other economists -- don't think that's a good idea, saying it would have a stultifying effect on discussions.

"The kind of 15-second sound bite that would come of these things would just be terrible," says Anil Kashyap, professors of economics and finance at the University of Chicago's Graduate School of Business.

Even though economists say there's room for improvement, the Fed is a lot more open than it used to be. For most of its history, the Fed committee that sets interest rates had worked in secret, perpetuating the belief that operating like a Sphinx was the most effective way to carry out monetary policy.

"I beseech you to be as careful as you can," Greenspan once warned his Fed colleagues about talking about economic matters. "The press will be swarming around."

Eventually the theory took hold that clearer signals from the Fed about economic conditions and interest can help shape investor and public perception and assist the Fed in attaining its goals. A breakthrough came in 1994 when the Fed began to state when it was changing the federal funds rate, a key interest rate controlled by the central bank.

Fed policymakers also share their thoughts about the economy through speeches, testimony and other public appearances. While a cacophony of views can be confusing and roil financial markets, some diversity of opinion can be healthy.

"You don't want them to be 'yes' men," says Sabino. "You don't always have to agree with the boss."

CometoseNo change in interest rates..........and at the open in the far east#1466078/13/06; 18:17:46

they are beginning by knocking the legs out from under gold so in the MORNING ..NY can have their way with the metals markets.

The very knowledgeable Adam Hamilton warned that this might happen ...."history repeats " he says

It's very tricky.....

Could be very steep and very fast .......

it would appear as if (since peace is breaking out in the middle east) that this is also a good time to sell oil reserves to help the panty raid on the metals....

This is a great opportunity to buy $ 20 - 25 sept 07 silver calls......when silver hits $10

tally ho !

R PowellCometose#1466088/13/06; 18:53:37

I'm curious, why did you pick sept. 07....?
ArmageddonConspiracy to break the back of Gold?#1466108/13/06; 19:55:20

On the day last week the British government supposedly "Stopped" the terror plot gold went down instead of up as most people expected. However, if you know about central bank manipulation of gold and the fact most people that move the market still believe gold is a "commodity" instead of money this came as no surprise. Furthermore, Chris Laird of the Prudent Squirrel has written that the Hedge funds which he says are responsible for 50% of the movement of the financial markets plan on short selling stocks/commodities on a massive scale as soon as the Mideast conflict quiets down as it appears now that it is doing. This would result in a massive selloff of the stock and gold markets. I have heard from some gold experts that gold is "never going to go back down below $500 per ounce". However, I believe that hedge funds with the tremendous amounts of money along with derivatives that unwind in unknown and sudden ways might be able to push gold below $500 per ounce. I think perhaps the Fed also wants to break the back of gold and the gold run up in price because Bernanke needs to actually lower interest rates by year's end so that the housing market doesn't completely collapse due to people forced to switch to a higher interest rate on an ARM.

Anyone else have a different idea on where gold prices are going to head in the near term?

GoldiloxConcerted attack#1466118/13/06; 21:14:39

@ Armageddon,

While your scenario is not unlikely, I don't see sub-500 as a very likely target.

Monday morning will tell the tale, but I think a battle around $600 is more likely, given the strength of foreign buyers.

I offer this from no more supportable foundation than my own gut feeling.

J-Bullionarmageddon#1466128/13/06; 21:21:35

Hedge Funds do not control the price of gold. Maybe for short term volatility they can run the stops on the exchanges but that effect will not work forever. The physical market will soon overwhelm all the paper games being played. Gold under $500 is a dream. Russia, China, the Mid-East, etc... are all buying gold now (whether anyone believes it or not is is happening). And no matter what the media would have you believe, gold supply is dropping, not increasing. Short-term (as in before the end of the year)I believe there will be fireworks in the precious metals that will shock everyone with how fast and furious it moves to the upside. If i'm wrong, then it will just happen next year or so. It is inevitable now.
The Invisible Hand EU neutrality costing precious time for gold-euro#1466138/13/06; 23:33:33

Raw materials continue to be traded in rijksdaalder and this results in the rijksdaalder gaining more depth (tradeability-transactibility) on a global level.

A/FOA/TG were hoping that the gold euro would counter this. But the gold euro is being faced with a swelling ocean of rijksdaalder-transactions.

If China's financial/monetary market would now be broken, then we have absolute rijksdaalder world dominance.
Then every corner of this globe will be "dollarised" and "everything" becomes a "rijksdaalder" derivate.
Everybody will then be forced to continue to transact with this all-encompassing rijksdaalder-debt-unit.

Because of the overwhelming rijksdaalder volume and rotation, the debt aspect plays no longer any role because "everybody’ is using it … and nobody takes (wants to take?) the valuable gold euro into account.

The gold euro has no world-level banking giants, like JPM/C and GS, who collaborate with her.

Our good baby (the gold euro) finds no customers. Certainly not when the price of gold (POG) has, for pragmatic reasons, to be under a controlled revaluation, linked to the rijksdaalder (exchange rate).

The gold euro is too slowly evolving versus the rapid rise of the globalising rijksdaalder … rijksdaalder whose annihilation under its own weight is thereby being delayed.

Japan with all its invisible stinking insolvability remains insulated from gold. Japan's economy continues its journey while the government of Japan has a debt of 160% GDP and while its banks and crashed stock-market are being fed yen by the Bank of Japan.

Nobody utters a word. Japan and its giant savers must remain under the US of A umbrella, n’est-ce pas?

The all-encompassing rijksdaalder world order is reigning sovereignly. What currency will rebuild Lebanon and Iraq? The rijksdaalder of course.

Euroland is not doing enough to build its alliances with Asia, Russia and the Middle-East. Out of fear for new 9/11 c.q. London terror?

A very difficult choice, indeed.

Europe is afraid to retake its place in the war arena. Fear of WW III?

Europe's neutrality is costing precious time for the gold-euro.

Meanwhile, the rijksdaalder regime is not too aggressive vis-à-vis Chima and Russia because the latter two are in a position to end the rijksdaalder dominance by allying themselves with the gold euro.

GOLD FINGERIt's all relative....right?#1466148/14/06; 03:26:51

It's all relative....right?

NEWS FLASH...terror level dropped!!

I was watching the late night TV and noticed the shop at home network with their salesmen who have a southern accent worse than Dr. Phil....anyway, they would not shut up about how fabiolus the new pure buffalos/Indian gold coins were.

They touted it's rarity and how in a few short months it will be even more valuable with CHINA'S new gold laws.

They also said you could melt it down and get at least the spot price with your first payment....That's right for only 2 super easy payments you can have the US government rare coin with only 100,000 left for a mere 1,199.00 or 2 payments of 599.00 each!

Now that just shows what a barging we have here with our host!! So stop gabbing and start buying!!

GOLD the new weapon of mass destruction!!


GoldiloxFragile truce#1466158/14/06; 04:28:47


According to the Haaretz newspaper, Mr Olmert ordered Israeli forces to begin observing the terms of the ceasefire at 0200 on Monday (2300 GMT) after meeting with Defence Minister Amir Peretz and senior army staff.

Southern Beirut continued to take hits from Israel on Sunday
However, the breakdown of Lebanese government discussions could hamper the implementation of the ceasefire, which calls for 15,000 Lebanese troops to replace a disarmed Hezbollah in southern Lebanon.

Hezbollah's leader, Sheikh Hassan Nasrallah, vowed over the weekend that his fighters would respect the ceasefire but would resist any continued Israeli presence in Lebanon after the deal came into force, raising fears of further clashes.

Some Israeli troops will remain in southern Lebanon to hand over to an international force, and few expect the hours and days after the ceasefire begins to be entirely peaceful.

"You can't move from black to white easily - there will be a period of grey," said Major General Benny Gantz, the head of Israel's ground forces.

All Olmert has, like his fellow appeaser Chamberlain before him, is a piece of paper.

Overall the language from both sides suggests nervous times ahead, with both sides on tenterhooks, ready to pounce on anything they see as a ceasefire violation, says the BBC's Rob Norris in Jerusalem.


While the media and anti-gold forces will try to claim the "peace has broken out," it remains to be seen!

melda laureMaybe oil stocks aren't so underpriced after all...#1466168/14/06; 10:30:09

75% water cut. That's a lot of water. Lots of tidbits if you can work through the environmental slant. They expect to be pumping for 50 years more. At 3.5% decline per year that will be an 83% decline from today's production rate.

As with gold mining, the "ore quality" goes down and the costs go up. At some point, the future isn't easy pickings. Yes the current profits are large, but the required fixes to maintain the flows are so large as to be out of reach. "Shut-er down bub, she's suckin' mud!"

The market questions the future value of oily paper. Perhaps it too is a message that ALL paper is an "oil derivative". A very scary message indeed.

TopazGold and Silver.#1466188/14/06; 13:45:55

Judging by the Deliveries today someone sees the current price levels of Au and Ag as a buying op. Can't says I agree with them tho, but it IS getting close.
The traditional demand driven price run-up period should kick in before months end and Aug-Sept roll-over this year could be "memorable".

We watch!

Quixotei've been around the block a few times#1466198/14/06; 14:18:22

and i see the barrick vs novagold hubbub as the same tired old story of people trying to put on a public service mask to cover their self-interest-serving faces.

i'm not that clever to dress myself up in fancy masquerades, but being human i'm surely just as self-serving. so if i'm of a like mind that barrick (among others) have collaborated to suppress the price of gold, then you'll all understand me and forgive me when i baldly serve my own interest and gladly sell the hell out of novagold while the gettin's good and buy plenty of metal using barrick's blessed price subsidy for as long as they can keep at it.


USAGOLD Daily Market ReportPage Update!#1466208/14/06; 15:24:58">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

Gold and oil prices cheaper on ceasefire

August 14 (from DowJones) -- Comex gold futures followed crude oil lower as a war premium eased on Monday amid news that a U.N.-imposed cease-fire was called in the Middle East. At settlement, December gold was down $5.10 at $639.30.

Analysts at TheBullionDesk said the apparent reduction of safe-haven concerns following the Israeli cease-fire has kept gold under pressure, "however with Iraq still on the verge of civil war, and Iran and North Korea's nuclear policies a cause for concern geo-political tension are still extremely high," with some investors likely to view gold's current dip as a good area to enter the market.

"Overall the lack of convincing direction on either side, coupled with the summer holiday season should see gold spend more time treading water in its wide $605-$655 range," said the analysts.

(from MarketWatch) -- "Gold [is] moving to near optimal short-term oversold between now and Wednesday [on] excessive optimism," said Ned Schmidt, editor of the Value View Gold Report.

"Investors able to see past morning news should be buying through Wednesday."

Indeed, "the markets are being whipsawed by every minor news item and comment by anyone of any importance around the globe," said Dale Doelling, chief market technician at Trends In Commodities. "This makes for an extremely difficult trading environment."

If current market conditions are short-lived and short-term trends emerge once again, "the likelihood that the metals markets can push to new all-time highs will rise dramatically," he said.

Prices may see a "major rally" in early September, according to Peter Grandich, editor of the Grandich Letter, who said he believes gold is going through a "classic bull-market consolidation."

"A new yearly high above $735 is likely before year's end thanks to a combination of geopolitical concerns here and abroad, strong seasonal demand and the recognition that the U.S. dollar is terminally ill," he said.

Analysts at Standard Bank noted that gold may begin to attract buying interest from investors in the oil-rich Middle East in light of the recent correlation between gold and crude prices.

"Historically, gold and crude oil have moved in rather similar patterns, and statistically, the gold-to-crude ratio averaged around 1:15, up until recently with current cross valuation at about 1:9," they said in a note to clients.

"This suggests that gold is relatively undervalued in terms of crude," Standard Bank said.

---(see url for full news, 24-hr newswire)---

TownCrierYet Another reason to go for ownership of the PRODUCT instead of the PRODUCER...#1466218/14/06; 17:31:03

HEADLINE: Newmont faces Uzbek crackdown over tax bill

August 14, 2006; Denver -- The government of Uzbekistan has launched a criminal investigation into Newmont Mining amid a $48 million (R325 million) tax dispute threatening its gold operations in the central Asian country...

[The company] acknowledged that the situation had deteriorated and said it had placed employees on leave during negotiations with government officials.

"At this point, the company no longer has day-to-day control over [the joint venture's] operations," Newmont spokesperson Randy Engel added.

Newmont said Uzbek officials had blocked the venture's gold shipments out of the country and assets had been seized.

In addition, the European Bank for Reconstruction and Development has told the joint venture that funds in its account were no longer available.

^---(from url)---^

There seems to be no end to the examples in which in-ground resources on sovereign turf are demonstrated to be the ultimate SITTING DUCK.

If you want the best assurance that your gold investment remains "as good as gold" during the entire duration of your investment, be sure to gravitate toward fully-paid gold coins in your possession as the most liquid and portable personal property within your estate. In this form it is definitely NOT a sitting duck.


The Invisible HandUAE-Pakistan-SaudiArabia vs Russia-Asia#1466228/14/06; 18:02:55,1518,431329,00.html

SPIEGEL ONLINE spoke with terror expert M.J. Gohel about the effectiveness of security measures, the creation of new terrorists and how the West can win the ideological battle.

....UAE + Pakistan + Saudi Arabia, regarded as staunch allies of the West....


UAE, Pakistan and Saudi Arabia are
the three states which recognised the Taliban
the three states where the press continues to argue up to today that 9/11 was a CIA-Mossad operation.

Mister Gohel is thus a member of the Internationalistic intriguers who have to keep the west under THEIR "terror" theory, their rijksdaalder world order theory of freedom and demokracy.

This block is being opposed by Another pragmatic block, Russia and Asia, for which this theory has no relevance.
UK to make new security rules permanent...

Mr. GoldfingerThe Hezbolla victory in Lebanon.#1466258/14/06; 21:02:16

Will this be the death of the USD? Imperialism cannot survive if it cannot conquer and kill it's enemies. The modern Israeli army utilizing billions of dollars worth of American military technology finds itself no closer to freeing its two soldiers after having a couple dozen soldiers killed and millions of dollars worth of munitions spent. Perhaps the US used Israel to "count the cannons" kinda like the Canadians were used at Dieppe. If so they must surely see that they can not possibly win a war with Iran. Vive Lebanon! Vive le revolution!
Paper AvalancheHey you gold buying crazies!!!!!!!!#1466278/14/06; 21:13:44

"GOLD the new weapon of mass destruction!!

Many post here to educate. Some post here to argue and discuss the points that the educators posit for the edification of the forum's patrons. Others post with no real information and, if I were a conspiracy theorist, to subvert the intent of the forum by going out of their way to appear to be "one of the gang" and then finish with a zinger that would make someone new to the forum think "I don't want to be considered a gold proponent, they are considered to be anti-government, pro-end-of-the-world kooks."

Shill fishing..... caught one!


GoldiloxCeasefire, but conflict not resolved#1466288/14/06; 23:19:25


It is too early to say who "won" the war over southern Lebanon because, despite a ceasefire, the fighting might not be over.

Despite the ceasefire, fighting might yet continue
And beyond that, the political and military structures that might prevent a future conflict have yet to be put in place.

If these structures (removal of Hezbollah from south of the Litani River and removal of Israeli forces altogether, extension of Lebanese government authority and army in the south, insertion of major international force), are successful, then Israel might claim a victory of sorts. Hezbollah would not have been crushed but it might have been contained.

But the potential for a prolonged and messy guerrilla war is huge and if that happens, Israel would have lost.

In the Middle East it is unwise to judge events too quickly. In the long struggle between the Israelis and Palestinians for possession of the land, many so-called landmarks and signposts hinting at a final destination have been passed yet the road never seems to end.

We do not yet know how this round of fighting and the subsequent set-up in southern Lebanon will evolve.

So whether this will turn out to be a turning point towards peace on Israel's border with Lebanon (adding to the peace it enjoys with Egypt and Jordan) remains to be seen.


Like the press, PMs, the political stability measure, don't really know what to make of the truce. Peace, or just rearming?

This morning's early action looked like the peace believers won out, but that did not last more than an hour or so into the sessions.

PMs and miners rallied mid-day, to give some of it back again into the close.

Refried confusion!

GOLD FINGERAre gold bugs crazy?#1466298/15/06; 00:36:48

Someday depending on my mood I can be overly cynical and perhaps a tad sarcastic. I do see a lot of humor here and a lot of nonsense. Most should be taken with a grain of salt.

Perhaps a gram of gold?

The REAL deal is what's do most of this forums discussion have to do with gold anyway?

Commodities are seriously affected by world conditions and leaders. If a country wants to seize a mine it seem like they can....what's to say they can't seize what's in your treasure chest...??

So how do you reference GOLD? Good or Bad?

So why do I actually purchase gold coins on a monthly basis? How crazy is that?

Golden LionheartWhat is a "SHILL"?#1466308/15/06; 02:10:31

@ Paper Avalanche. Kind Sir please enlighten me. I am aged 76 but this is the first time I have encountered the word "shill". Its not in my simple dictionary either.
Perhaps its a new word from the Estados Unidos? I live, and was born far from that country in another hemisphere altogether but I do know that you use some quaint expressions in that country.

I am finding that certain people on this Forum recently are, IMHO, stretching the guidelines set down by our host.

Paper avalanche, I do appreciate your contributions.

BTW, any idea when the Estados is going to make the change to metric? You are just about alone and isolated using the old units imposed on you years ago by England. I ask this because I believe using the old units caused a lander to crash on one of our fellow planets because someone used yards instead of metres. Expensive for the taxpayer!

BoilermakerChris Powell - GATA- NovaGold#1466318/15/06; 05:11:29

I strongly agree that the Barrick takeover of NovaGold is a cartel inspired coup in the making. A takeover of NG by Barrick could set back the timing of free gold by a year or more as the "deep storage" reserves of NG are used to support the paper shorting or physical sale of gold held by cartel members (including US Treasury).

I would recommend that NG contact China, the UAE and other parties that heve expressed an interest in increasing their gold reserves. China's recent takeover attempt of Unocal indicates their willingness to obtain critical materials in situ anywhere in the world. I say this recognizing that it may be impossible to find a North American or other potential white knight gold company to compete for NG because of cartel controlled shareholdings and/or lines of finance linked to those gold companies large enough to make a serious bid.

Certainly a bid from China, even if it was not ultimately sucessful, would get the attention of cartel members and help to smoke out further evidence of gold suppression.

SundeckLet's get loded - it's a whole new show - but with a rich vein of historical craziness.#1466328/15/06; 05:23:47

Diggers and Dealers

Well, there you have it. The Diggers and Dealers conference comes and goes in Kalgoorlie with not one mention on this forum...unless I am mistaken. And all this in one of the premier gold provinces of the world. Anyway, the link gives a brief run-down from the Sydney morning Herald of a few days ago. (Nice picure...note the golden theme.)

@ Sir Golden Lionheart. Don't you hail from around those parts?

I'll let Sir Paper Avalanche enlighten you further, but I think a "shill" is a kind of secret mole planted in a gathering to intentionally corrupt the proceedings for some partisan reason. One can imagine "shills" cropping up in all sorts of forums...and the internet is a great place to try out your shillish skills, because people only get to see what you type, without the revealing body-language. There are probably even "virtual shills" on the internet...that is, computer codes that "intelligently" interact with the gathering in a partisan and corrupting way...computers can move more rapidly and cover more ground than even the very most adroit human shill...and you don't have to be toooo clever to get people to unload.

No worries Sir Golden Lionheart...know your own mind and think for yourself and "shill be right", as we say in Oz...


@ Sir Gold Finger

Are gold-bugs crazy? Good question! Many an ardent shill may think so...or at least try to generate that impression. But consider the question from several standpoints:

1. If gold-bugs are considered crazy, then it wasn't so long ago when most of the world was crazy. Consider the role of gold in the European colonisation, exploration and "development" of the continents of the Earth...few places are untouched by this "bunch of crazies".

2. Similarly, it was not so long ago when all the bankers, financiers, economists and global leaders from Churchill to Croesus were afflicted by this same craziness. If latter-day gold-bugs are crazy, then they are in good historical company!

3. The US treasury is crazy too. Not only do they retain 8000 tonnes of gold on their books, but they insist on "valueing" it at $43 per ounce! How crazy is that?

4. Large holders of US dollars are the craziest of the crazy, because anyone who knows anything about money knows that this is just a hollow promise, supported by ingrained perception and a dated modus operandii that everyone is obliged to follow. While-ever the world continues to play in Casino Globale, there will be strong demand for the tokens of the house... A crazy place indeed, but not without a lot of fun and achievement.

5. A majority of women and men are just incomprehensibly crazy too. Just look at the number of jewellery stores all over the place and the number of women with golden rings on their fingers and men, as well, with that tell-tale band of gold on their outstretched paw which says: "Hang on ladies, this guy is probably not fair game!" Why don't people wear teflon bands instead...and clutter the jewellery windows with iron nails and chewing gum? Crazy if you ask me...

6. I could go on and on and on...but then you might think that I have gone crazy...and perhaps I have. This world is a crazy place sometimes...



Clink!So that would make ...#1466338/15/06; 06:25:29

someone who, despite admin warnings, posts misleading information concerning a leak of oil from the Alaskan pipeline in a too-earnest, but polished, fashion shows a shrill spill shill skill still ?

Sorry, more coffe required.

Clink!@ Golden Lionheart#1466348/15/06; 06:55:05

Main Entry: shill
Function: noun
Etymology: perhaps short for shillaber, of unknown origin
1 a : one who acts as a decoy (as for a pitchman or gambler) b : one who makes a sales pitch or serves as a promoter


GoldiloxOnomotopeia#1466358/15/06; 09:14:45

@ Clink,

Thus making your glee at onomotopeic digital identification a:

Kill "shrill spill shill skill still" thrill?

Try saying that aloud once wihout practice - LOL.

osa104cGET $um#1466368/15/06; 09:42:33

The term "shrill" can be used as an insulting descriptive, used in the context of someone who is often angry and rude.

A chill pill coupled with a coveted seat at the table, (thank you SIR MK).......priceless..get yours............................................AMF

osa104cOOPPPS!#1466378/15/06; 09:47:59

wrong thread..............crowd psychology....AMF
GoldiloxBush hails Medicare reform (old news)#1466388/15/06; 09:59:08


The US president is celebrating a major legislative victory after Congress approved the biggest overhaul of the country's health care plan for elderly and disabled people since its creation nearly 40 years ago.

Reform of the Medicare system, passed by both houses, reduces the cost of drugs for pensioners and gives them access to a wider range of new medicines.

"Seniors have waited too long for more choices and better benefits, including prescription drug coverage, similar to the kind now enjoyed by federal employees and members of the Congress," President George Bush said in a statement.


While seemingly OT, and quite "old news", the Medicare "reform", which can be more reasonably labeled "public subsidy" for Big Pharma, adds more covert ballast to ill-measured inflation.

In order to pass their massive subsidy plan for Big Pharma, they needed to convince the public that it's really a "public subsidy" with their "spin doctoring". Since politicians know that the electorate cannot resist raiding the treasury, they just relabel their corporate raids as public benefit - not unlike Kelo vs. New London, where a private shopping mall was created by Eminent Domain property seizure.

What ever happened to corporations pricing their goods by "what the market will bear"? Capitalism is not dying, it's being killed off by increasing government participation, aka socialism with a "twist".

Why are gold, oil, pharmaceuticals, etc., not priced appropriately? Look no further than direct government participation in the markets for the answer.

Those who support "growing" government in the name of "freedom", are really fueling a covert socialist transition, often without recognizing it as such.

GoldiloxUrbansurvival hack overcome#1466398/15/06; 10:20:45


The nicest thing you could do right now would be send an email to every one of your friends and let them know is back up - hackers overcome. Even if your friends don't read it, if they would just look at it once, today, then that will help propagate the new DNS server around the planet. - thanks!


Maybe he pinched a nerve with one of those web bot thingies! There seems to be a number of UrbanSurvival readers here at the forum, so we can help him out by accessing his site from various word-wide locales, and rebuilding his DNS linkage.

Nathan BrazilGold Humor with a grain of truth - skip if you are very serious...#1466408/15/06; 10:33:15

I know that persons contemplating buying gold freqently want advice on exactly when to jump in (as I did), so here something I found to be helpful.

The mathematically inclined can simply compute the price of gold tomorrow, or at any future date:
Here are some of your variables (I leave determining the rest as an exercise):

BU.S. Bond action
C China Central Bank Actions (break out currency and gold separately if desired)
JBank of Japan actions
LJewelry Purchasers (India)
FU.S. Federal Reserve Actions
GU.S. Government actions (invasions etc)
PFactors affecting gold Producers (war, labor, politics)
RRussian Purchases / Sales
EEngland CB actions
HHedge Fund actions
AArab Middle East Purchasers
OImpact of Oil factors
MThem (the Manipulators)
SSmall Investors
I U.S. Inflation
WRest of World inflation
VInversion Factor (When present, causes any of the above terms to have opposite the expected effect, thought to be related to "M")

Simply determine the relationships between all variables and construct an equation to solve for the price action.

(Instructor's note: Having enough money or clout to directly affect a major term will be considered cheating.)
NOTE: A much simpler expression is available (and widely used) to reveal the mystery of yesterday's gold price movement,

"Gold moves (direction) on (random financial headline or world event)". This has the added benefits that it is 100% accurate and can be completely automated.
For a bit less tongue-in-cheek, if we ordinary people think we know the inevitable movements of some of the terms we may hope to guess price in the intermediate timeframe or actually predict the long term movements. For most readers this results in the decision to trade paper dollars for gold right now (whenever now is) as much as you can!

TownCrierSundeck, Diggers and Dealers conference#1466418/15/06; 11:25:01

You're ALMOST right about no mention of the conference.


truth be told, the brief newsblurb I posted last week about Newcrest Mining's chief, Ian Smith, making a forecast of $1,000 gold was a D&D item from Kalgoorlie.

Weak stuff, to be sure, but better than a shutout!



TownCrierHEADLINE: Central Bks Slower Gold Sales Should Support Prices - Report#1466428/15/06; 11:39:56

August 15th, 2006; ONDON -(Dow Jones)- With European central banks unlikely to opt to sell the maximum allowable 500 metric tons of gold in their annual quota, gold prices should benefit from the reduced physical supply, according to a report by London-based consultancy Virtual Metals Ltd.

The 15 central banks under the European Central Bank Gold Sales Agreement, or CBGA, are entitled to sell 500 metric tons of gold a year under the agreement, but sales only stood at 331 tons at the end of July, the report said.

Failure to sell the 169 tons of gold remaining before the Sept. 26 deadline would mean there would be less gold available than expected this year, the report said. It would also change assumptions about how the 500-ton quota will be sold in subsequent years.

"With just two months to go of the European Gold Agreement, the signatory Central Banks are going to have to quicken the pace of their sales substantially if they are to hit their 500 ton limit and it seems unlikely they will," says Matthew Turner, analyst at Virtual Metals.

Even so, if central banks decide to sell the remaining amount in the next two months the impact on the gold market will be "major," according to Turner.

^---(from url)---^

I find it more likely that any sudden last-minute acheivement of the "quota" target wouldn't matter one way or the other -- due to the off-market nature of these very special gold operations.


geQuestion on LBMA Clearing Volume Charts#1466438/15/06; 11:45:48

A/FOA used to say that LBMA clearing volume would fall to zero as paper gold market is replaced by physical market. Recently, the clearing volume in ounces appears to be increasing. How should we interpret this? Thanks in advance...
TownCrierGold Is Fashionable in Nepal#1466448/15/06; 11:47:24

(2006-08-15) -- Times have changed in Nepal. The price of gold has skyrocketed. Crowds gather in jewelry shops to see the latest designs. To take advantage of the craze for ornaments, new stores are opening up.

According to shopkeepers, the consumption of gold is increasing. They say gold ornaments sell best for festivals, like Teej, Dashain, and Tihar, and marriage ceremonies. In Nepal, it is believed that gold attracts wealth to a household if bought during such periods.

Jewelers say there has been a revolutionary change in the buying habits of people over the last few years... globalization has played a part in this change.

Ram Prasad, who works in a government office, ... says he prefers to give gold as gifts because it retains its value.

^---(from url)---^

" attracts wealth to a household if bought during such periods."

More accurately and instantaneously, the gold IS the wealth added to a household when it's bought. It's as simple as that.


TownCrierge,#1466458/15/06; 11:55:24

My interpretation is that a bit of transitional time is being bought.

Did you see my post last week about ScotiaMocatta boldly [defiantly(?) madly(?)]stepping in to absorb some of the positions being vacated in this time period by the likes of Rothschild and their peers who have already quit or are currently quitting the bullion banking scene?


Nathan BrazilIs this new gold in Sierra Leone?#1466468/15/06; 12:25:51

Is this a new potential producer of gold? Will it suffer the same taint as the diamonds?
USAGOLD Daily Market ReportPage Update!#1466478/15/06; 14:38:16">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

Tame PPI sees gold, oil and dollar all lower

August 15 (from Reuters) -- COMEX gold futures ended lower with oil prices on Tuesday, but pared initial declines when the dollar slid on tame U.S. producer prices, traders said.

Though technical factors have been driving gold lower during the slow vacation season, traders said dollar weakness throughout the session offered support.

A decline in the dollar often helps lift dollar-denominated gold prices by encouraging buying among overseas investors.

The December gold contract was down $6.40 at $632.90 but up from the session low at $630.50, a level last seen on July 26.

The dollar tumbled after a weaker-than-expected U.S. producer price index for July reinforced the view that the Federal Reserve may not need to resume its credit tightening policy in September.

Traders said the summer vacation period has made trading more difficult, and many of those who were still participating on Tuesday stepped to the sidelines after the inflation numbers to see if Wednesday's consumer price report would confirm the benign wholesale price data.

Traders have said active short-term players seem to be taking their cues from technical factors lately.

"More people are trading technicals than anything. Gold seems to be responding without rhyme or reason to fundamentals, so it's harder to trade them right now," said one trader.

---(see url for full news, 24-hr newswire)---

MKThe latest NewsGroup is in the e-mail box. . .#1466488/15/06; 16:08:15

If you haven't joined the Group, here's what you're missing:

* * * * Who is calling for $700 gold by the end of the year and why.

* * * * How the central bankers intend to divert the deflationary endgame and what it means for gold.

* * * The significance of falling central bank gold sales and mine company "dehedging" now running at record levels

And. . .

* * * * * Will the Middle East crisis derail the global economy? A haunting message -- a 5-Star Stephen Roach special

And a Note at the top by way of perspective for those a little restless about the doldrums . . . . .

We invite you to join by going to the link above. It's free. It comes by e-mail and we rate the content on a five-star basis.

Can't believe how many sign-ups we get every time we run a post like this. . . . .

Mr. GoldfingerI would recommend that NG contact China, #1466498/15/06; 17:04:39

What are ya nuts? China? You want Nova to be controlled by China? Haven't they taken away enough business from North America?
Sierra MadreGold price intervention...#1466508/15/06; 17:07:54

Let's not call it "manipulation" - that doesn't sound acceptable. Let's call it "intervention" in the gold market. What could be more normal? After all, all the big countries and some smaller ones intervene in their foreign exchange markets to bolster, or as in the case of Japan, keep their exchange rate down. Why shouldn't we expect the same to happen in the case of gold?

Just take a look at today's (and previous days') graph for gold prices at the "other" site.

A line of prices that want to up, and BANG! a slash of selling to bring the price down, time after time, today.

Evidently, Paulson (or who else?) intends to keep the price of gold down below $625. No holds barred. The seller(s) are throwing everything at the gold price. It appears the effort is desperately important. Pre-emption?

Such an effort requires selling substantial quantities of physical gold - not only paper gold on the COMEX.

The quantity of gold required will eventually draw down supplies available. It happened before, when the US sold enormous quantities of gold back in the 70's. Eventually, they gave up.

The same must happen again. We don't know how long it will take, but these wise guys are making gold purchases for the rest of the world, extremely attractive. The lower the price, the greater the attraction - not the less!

I expect a vertical rise in the price of gold, at some point. When? Hard to tell, but that's what will happen.

Buy gold at any price.

Golden LionheartShill#1466518/15/06; 18:50:12

Thanks to everyone who contributed to my education about the word shill. I get the gist of what it means now.

Sundeck. I now live on the West Coast but follow the Diggers and Dealers annual "swim through" of the Kalgoorlie bars. Of course most of it is pure promotion of exploration companies that we cannot talk about on this Forum.

melda laureA diet of interventilated data is unhealthy.#1466528/15/06; 23:58:07

The dow at 11,300'ish means nothing to me anymore. The 10y bond market is irrelevant. Ever since the murder of M3 and the funny Carribean Hedge Vortex in the TIC report, I just dont give it much weight. Now I begin to doubt the hydrocarbon inventory figures.

It is always a search for USEFUL information, and it is getting harder to find. The oddity of lowball PE's on oil equities seems to me to want a good explanation. What the market belives about the future earnings for that slice of the energy industry is a mystery. Perhaps a greater storm is brewing. Perhaps we get a buying opportunity for gold.

Or perhaps the days of sub-$1000 gold will end very soon. The oil PE's are telling us something, I think it is a key anomaly. Oil futures and oil PE's are having a dispute. The oil/gold ratio has been too low for too long.

The hour is late, soon the last of the summer nights will pass and with them the cheap abundant summer fruits; then comes the harvest season when the brokers strap themselves back into their cockpits.

SundeckWha's that golden sound I hear?#1466538/16/06; 04:20:47

...ahhh yes, that explains it!

"On Aug. 16, 1977, singer Elvis Presley died at Graceland Mansion in Memphis, Tenn., at age 42."

He produced 141 GOLD, platinum and multiplatinum records in his short life.

(Sundeck: Wonder why they call them "gold records"?

Other notable events of this day include:

- 1948 Baseball hall-of-famer Babe Ruth died at age 53. (Sundeck: Mmmm...a sad day indeed...)

- 1987 Thousands of people worldwide began a two-day celebration of the ''harmonic convergence,'' which believers called the start of a new, purer age of humankind. (Sundeck: Purer age, eh? Purer violence perhaps??? Ahh well, where would we be without hope and faith...)


GoldiloxAOL gets court order to dig for buried bullion#1466548/16/06; 04:33:11


WASHINGTON—AOL is preparing to dig for buried gold and platinum on property in Massachusetts owned by the parents of a man it sued for sending millions of unwanted spam emails to its customers.

AOL said yesterday it intends to search for gold and platinum bars the company believes are hidden near the home of Davis Wolfgang Hawke's parents in Medfield, Mass. The family said it will fight in court to oppose AOL's plans.

AOL won a $12.8 million (U.S.) judgment last year in U.S. District Court in Virginia against Hawke but has been unable to contact him to collect any of the money he was ordered to pay in the lawsuit.

"I don't care if they dig up the entire yard. They're just going to make fools of themselves," said Peggy Greenbaum, Hawke's mother.

AOL defended its efforts.


More "late-night" entertainment. If you're related to someone who owes money, your assets can be ruined looking for it. More litigeous silliness, really.

KnallgoldNewmontJV bankrupt (lets get physical)#1466558/16/06; 07:50:34

TASHKENT, Aug 16 (Reuters) - A court in Uzbekistan has initiated bankruptcy proceedings against the local joint venture of U.S. gold miner Newmont Mining Corp. (NEM.N: Quote, Profile, Research), according to a statement published on Wednesday.

Newmont's difficulties come at a time when Uzbekistan's relations with the West are strained following strong Western condemnation of a bloody crackdown on a rebellion in the Uzbek town of Andizhan in May 2005.

On Tuesday, Uzbekistan revoked a licence held by Britain's Oxus Gold Plc. (OXS.L: Quote, Profile, Research) to develop a zinc and gold deposit in the south of the country, sending the company's share price down more than 8 percent on the London Stock Exchange.

The state Committee on Demonopolisation said in a statement published in Uzbekistan's Narodnoye Slovo newspaper that the venture's creditors would meet on Sept. 19 to discuss the matter.

It added that the committee was temporarily in charge of managing the venture's operations.

The Uzbek government and Newmont could not be reached for comment.

The Zarafshan-Newmont Joint Venture, 50 percent owned by Newmont and 50 percent by the former Soviet republic, is facing two tax claims for a total of $48 million.

Newmont said last Friday it had lost day-to-day control over the joint venture and that it believed the government was seeking to expropriate its share of the operation.

Newmont's 50 percent share of gold sold by the venture last year was 122,700 ounces. By comparison, Newmont expects to sell a total of about 6 million ounces of gold this year from all its operations worldwide.

The U.S. company has said it will seek international arbitration.

mikal@Goldilox#1466568/16/06; 08:40:30

Good story. I guess eminent domain doesn't apply where barbarous relics are nearby. "Let's have our cake and eat it too, and then they can clean up after us!"
mikal@Goldilox - Real property#1466578/16/06; 09:04:31

Should the lawyers for AOL win the suit, it's like a de facto eminent domain forfeiture it seems.
They condemn the land(and have their way with it) confiscate any golden "real property" found and leave without just compensation. We don't pay taxes for nothing!

GoldiloxNew Waterfalls for the Sawbuck#1466588/16/06; 09:41:11

The $ is not doing well this moning, and the previous battles seem to have succumbed to step-falls for now.
mikalGold investment surges#1466598/16/06; 11:23:21

Gold investment demand up 19%
16/08/2006 17:51 Snippits:
Johannesburg - Strong demand from investors across almost all categories drove investment in gold to high levels in the first half of 2006, the World Gold Council (WGC) said in its latest report released on Wednesday.
In the second quarter total identifiable investment demand for gold rose 19% to 130 tonnes and 75% in value terms year on year, taking the total value of identifiable investment for the first half of 2006 to $6.1bn.
"Increased investment brought added volatility to the price, which, at an average of $627.71 for the quarter, was 13% higher than in Q1 and 47% higher than in Q2 2005," the WGC said....
While demand for gold is on the up (and despite an increase in the supply of scrap) overall gold supply was "constrained" in the second quarter of 2006 as a result of lower central bank sales and substantial de-hedging by gold mining companies, the WGC also noted."

As reported consumption figures can show currents and trends, unreported trades act as undercurrents that will surprise many observers. Still even WGC data is impressive.

USAGOLD / Centennial Precious Metals, Inc.* * August Buyers' Group * *#1466618/16/06; 11:45:07

South American Coin Sets! *LIMITED TIME*

TownCrierVietnam government takes "Giant step" in right direction, halves gold import tax#1466628/16/06; 11:49:25

(Xinhua) August 16, 2006 -- Vietnam has reduced its import tax on gold bullion to 0.5 percent from one percent...

The tax decrease recently decided by the Vietnamese Finance Ministry is a move to develop the domestic gold market...

The country has around 8,000 gold trading firms.

^---(from url)---^

One step closer to market freedom.


Gandalf the WhiteThanks Sir Goldi <;-)#1466638/16/06; 11:59:09

Goldilox (8/16/06; 09:41:11MT - msg#: 146658)
New Waterfalls for the Sawbuck
YES, Sir Goldi --- LOVE those daily WATERFALLS !
I like to go look at the base of those falls, BECAUSE, THAT is where the GOLD is available!

TownCrierWealthy Irish drinkers get 500 euro cocktail#1466648/16/06; 12:07:43

DUBLIN (Reuters) - Ireland's most expensive cocktail has gone on sale at a Dublin hotel -- priced at a sobering 500 euros.

The "Minted" cocktail -- a vanilla and chocolate Martini on sale at the Mint Bar in central Dublin's Westin Hotel -- includes vanilla-infused vodka, 200-year-old cognac and flakes of 23-carat gold...

The pricey tipple, the equivalent of a month's groceries for an Irish family of four, joins a growing league of extravagant global cocktails -- with some bars now even popping a diamond ring into glasses...

^---(from url)---^

"...joins a growing league of extravagant global cocktails..."

A GLOBAL phenomenon that sees so much money to burn surely tells you as authoritatively as anything can that gold is underpriced.

By way of comparison, the spot price for one ounce of gold is currently only 490 euro.

With an ounce of gold, the buyer gets the best of both worlds -- he can make a showy display of his purchase (since that seems to be the objective with the cocktail), PLUS, the gold will retain the value and thus he'll still have something to show for his effort the next day... better than a hangover!


mikalLME in a pickle over Nickel!#1466658/16/06; 12:22:48

Nickel Spikes on Panic Short Covering
By Chris Flood
Published: August 16 2006 11:19 | Last updated: August 16 2006 17:54
Nickel continued to dominate action in commodities on Wednesday as the cash price of the metal spiked to $35,000 a tonne.
Dealers reported panic short covering - the third Wednesday of the month and the most important day for open interest. The ‘TOM/next’ premium allowing short positions to roll over one day surged to $1,000 a tonne from about $100 just weeks ago.
Although London Metal Exchange nickel inventories rose 354 tonnes to 6,162, tonnes cancelled warrants - metal already earmarked for delivery - rose to 77.7 per cent of LME stocks. The supply situation is extremely tight as global inventories have shrunk to less than one day's worth of world consumption. Three-month nickel rose 6.4 per cent to a record $29,200 tonne."
LOL, what were these boys THINKING?
Apparently not safety, let alone room to breathe.
Gold. Get you some!

TownCrierFed's Fisher: U.S. economy and monetary policy at crossroads#1466668/16/06; 12:30:41

WASHINGTON (MarketWatch) - The economy and interest rate policy are at a crossroad and any Fed watcher who is certain about which road they will take should be taken with a grain of salt, said Dallas Fed president Richard Fisher on Wednesday.

The U.S. economy is downshifting, but there is also a definite increase in inflation momentum, he said.

Although the Fed expects that the lagged effects of past 17 rate hikes, and tightening by other central banks around the globe, may "tamp down" inflation pressure, "nobody knows with precision how the dynamics of the global economy affect these lags or the practicability of our policies.

At least I don't," Fisher said.

"If anybody tells you with absolute conviction that the Fed is done raising interest rates or with equal conviction that they have only paused and will raise rates more starting in September or October, remind yourself that at best - and I'm being generous here - they are only guessing," Fisher said in a luncheon speech to a real estate trade group in Dallas.

^---(from url)---^

Fisher also said the U.S. economy is slowing because of the combined housing cool-down and rising energy costs, but went on to assure the audience:

''From my vantage point ... a recession is not visible on the horizon.'' Period.


From my vantange point... 'We shall have the hyperinflation.'

It is chiselled in stone on the job description for central bankers to talk tough on inflation, but it remains a "best-kept secret" that the job position also comes with, effectively, a blood-oath to invoke every power known to mankind as necessary to prevent deflation.

To be sure, national economic recession can happen if measured in REAL terms (i.e., in inflation-adjusted currency units), but not in unadjusted NOMINAL terms wherein the measuring unit (i.e., the currency's purchasing power) for the nation's economy can be so easily made shorter the ensure the appearance of economic growth.

Standing at a "crossroads", a central banker will always lean toward erring in the direction of inflation.

With this in mind, choose gold as the form of your savings to preserve your purchasing power through time.


mikalChanging trading rules#1466678/16/06; 13:03:17

Nickel Soars, Prompting Metal Exchange to Impose Trading Limits | Bloomberg | 08/16/06
Snippit: "Holders of short positions, or bets that prices will fall, can borrow nickel at no more than $300 a ton each day, the LME said in the statement. The move limits the so-called ``backwardation,'' or premium of cash over futures prices."
I was told to "watch closely how the paper games play out, this is the dry run for gold and silver when the shove comes ...."

TownCrierGarc'a takes softer line on Peruvian resources#1466688/16/06; 13:04:33

(FT) -- Alan Garc'a, Peru's new president, is treading more lightly in his relations with natural resources companies operating in the country than his colleagues in neighbouring Bolivia and Ecuador.

Despite campaign pledges to impose a windfall profits tax on mining firms and reduce prices of natural gas-based fuels, Mr Garcia's administration is instead asking them for a voluntary contribution towards social projects.

"We are doing this in a friendly environment. It's not a confrontation. It's not a negotiation with pistols on the table," Prime Minister Jorge del Castillo said on August 1.

In Bolivia, by contrast, President Evo Morales is [trying] to move ahead with plans to nationalise the country's gas reserves. And in Ecuador, oil sector investment has slowed after Congress approved changes to the Hydrocarbons Law in March that will oblige foreign oil firms to hand over 60 per cent of excess earnings to the government.

..."The government clearly understands that changing the rules will affect investment and wants to avoid this," Carlos del Solar, president of the National Mining, Petroleum and Energy Society, told the Financial Times.

He said, however, that it will not be easy for the mining companies in the SNMPE, about 30 in all, to come up with a formula with which they can all be happy for making their voluntary contribution.

"Part of the environmental conflicts [with mining companies], have to do with the fact that the people feel that natural resources are being extracted and that not everyone is benefiting from this wealth," said Marco Arana, a Jesuit priest who runs Grufides, an non-governmental organisation in Cajamarca, home to Latin America's largest gold producer Minera Yanacocha.

^---(from url)---^

Bear that last paragraph in mind and think on this. Knowing human nature to be what it is, imagine what the social consquences will be when the residual financial fetters are finally cast off of the market's price-discovery mechanism to reveal gold's fair valuation as scarce physical property (instead of the current situation in which it is treated (and priced) as though it were an inexhaustible financial (paper) creation).

Imagine, with that last paragraph in mind, what would happen if it were suddenly a reality that gold had market value (purchasing power) which was 20 times greater than currently perceived by the public at large.

How many of the current mining operations in all of the countries of the world would be allowed to continue with business-as-usual?

How many would be nationalized, or effectively so (through taxation), as people, collectively, seize for themselves what they deem to be a "fair share" of this newfound sovereign wealth?

At such time as high-value gold arrives, do you want to be a sitting duck -- a highly public mining shareholder; or would you rather be a very private gold owner enjoying the sole power to arrange the disposition of your metal according to your own desires?


TownCrierBankers get rich from Chávez's revolution#1466698/16/06; 13:22:03

(FT) August 16 2006 -- Bankers traditionally face firing squads in times of revolution. But in Venezuela, they are having a party.

Dirán Sarkissián, president of the local subsidiary of Stanford Bank, a US bank with offshore operations based on the Caribbean island of Antigua, is proud of his rapidly lengthening list of high-net-worth customers who are enjoying President Hugo Chávez's self-styled "Bolivarian Revolution".

Venezuela's abundance of usually limitless "black" credit cards would seem to sit uncomfortably with Mr Chávez's fiery, anti-capitalist rhetoric and his occasional threats to jail bankers.

"We have to transform the structures of capitalism," he said in a recent speech peppered with quotes from rebel icon Che Guevara.

But so far, rather than nationalise banks, the "revolutionary" distribution of oil money has spawned wealthy individuals who are increasingly making Caracas a magnet for Swiss and other international bankers. And it is not just private bankers who are banking on the revolution.

Francisco Faraco, a banking consultant, says local commercial banks are enjoying their most profitable times ever under Mr Chávez: "Venezuelan banks have not seen a contraction during a single quarter since 2003."

In 2002, when oil prices were low and the economy was in deep recession, the Chávez administration issued billions of dollars’ worth of high-yielding domestic debt that was lapped up by the banks. Double-digit interest rate margins left the country's banks among the most profitable in Latin America.

But as oil prices have since soared, government spending has risen by 70 per cent and the economy has grown rapidly – by 17.9 per cent in 2004 and 9.3 per cent last year. Spending and exchange controls have led to a big expansion of liquidity and stoked demand for credit.

...Franklin Santarelli, a director of Fitch Ratings in New York, which last month downgraded several Venezuelan banks, says the profitability of Venezuelan financial institutions could decline for another reason.

"The main risk that is embedded in the negative outlook for Venezuelan banks is related to the possibility of more government intervention," he says.

If Mr Chávez's practice of "21st century socialism" begins to match his rhetoric, Mr Faraco says, the party will be over for the bankers.

"In a socialist economy you assign resources as a result of the will of who governs, but in a capitalist economy resources are assigned as a result of risk analysis," he says. "They are two completely incompatible criteria."

^---(from url)---^

Life's a party for the minority "haves" until the majority "have nots" wield the power of numbers.

Good context for an improved understanding of "utility" within the grand scheme of things.

How vulnerable are your personal "resources" to either the adversities of being overprinted or of being "reassigned" by intrusive social forces?


Ten BearsDangerous times #1466708/16/06; 14:09:53

Henry C K Liu is always informative, (sometimes overly so) and always quotable…. worth a read imo.


Dollar hegemony depends on the US dollar being fully fungible, ie, able to buy anything in the market without conditionality. And the nature of dollar hegemony is that while the US and only the US can print dollars at will, many of the dollars in circulation are no longer held only by US citizens but by others, including would-be terrorists and their supporters

Democracy became a de facto conceptual victim of World War II geopolitics that spilled over to the ensuing Cold War and the globalization aftermath.

Lasting peace is never the result of victory in war; it is the result of victory over war.

Ten Bears:
Dangerous times call for prudent investments, gold is high on that list.

Noble1SLV#1466718/16/06; 15:00:15

Anyone wish to conjecture on why the silver ETF, on August 14, 2006, would have to file a notification of inability to timely file form 10-Q or 10-QSB with the SEC? I think this is their first reporting period.

Their reason stated is: "The report cannot be filed due to the temporary unavailability of the officer of the Sponsor performing, with respect to the registrant, functions similar to those of a principal executive officer."

What does that mean?

See link.

Although I have always felt that the ETFs represent the next best thing to holding physical gold and silver (especially for those unwilling or unable), they are just that, the next best thing. PG and PS in hand is and always will be the most prized form of ownership.


Noble1SLV#1466728/16/06; 15:28:32

Answering my own question.

Either their numbers aren't adding up or they need to resolve a "material event" before reporting.


TownCrierETFs... "the next best thing"#1466738/16/06; 15:47:12

As a financial tool for those who, for reasons I'll leave unsaid, find it desirable to do the things they do, the biggest convenience the ETFs offer is the ability to conjure up a short position to feed into speculative demand with the relative safety that they don't have to face any risk of potential difficulties in making delivery of scarce metallic product because by the nature of it they are short shares, not metal.

Certain parties with vested interests in preventing a runaway precious metals market for this reason LOVE the ETF... a custom-made tool to hoodwink the unwashed masses.



TopazSilver.#1466748/16/06; 16:06:03$GOLD:$SILVER&p=D&st=1990-01-01&en=2006-12-23&id=p44105871339

You've gotta L O V E the look of Silver here as we crawl toward the penultimate delivery window for '06.
She's been whittling away on the Au/Ag ratio all year and one gets the feeling it's Game-On from hereon out.

USAGOLD Daily Market ReportPage Update!#1466758/16/06; 16:26:25">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

Gold up, dollar down on sidelined Fed

August 16 (from MarketWatch) -- Gold futures closed higher Wednesday for the first time in five sessions as softer-than-expected consumer inflation data dulled expectations that the Federal Reserve will raise interest rates again and put pressure on the U.S. dollar.

Following the news, the dollar tapped an almost one-week low versus the euro and moved lower against other major currencies.

Gold is viewed by many as a hedge against inflation, and weakness in the dollar tends to fuel investment demand for the precious metal.

Against this backdrop, gold for December delivery closed up $6.10 at $639 an ounce on the New York Mercantile Exchange.

The contract lost more than $29 in the last four sessions as traders moved to unwind the terror premium built into prices during the conflict between Israel and the Lebanese Hezbollah group.

Peter Grandich, editor of The Grandich Letter, said that on a technical basis, gold is setting up for a large rally, after a medium- to long-term bottom that should be set in the next few days to couple of weeks.

"Personally, I would love to see a washout under $600 but markets rarely provide you the ultimate best scenario," he said.

"Whether or not this occurs, the most important belief of mine is not only that are we going to take out the highs of earlier this year around $735, but it's only a question of when, not if, we make new all-time highs in 2007."

Grandich cited a range of factors to support his bullish outlook, including a "constructive" supply versus demand scenario with mining supply currently below expectations while demand remains high.

"While there will be a lull at times, serious geopolitical concerns in the world should give gold a strong underpinning for the foreseeable future. It's clear that the U.S. dollar is no longer the sole go-to place for safe-haven investing."

---(see url for full news, 24-hr newswire)---

Noble1ETFs#1466768/16/06; 17:01:19

C'mon Randy. Be real. Your intelligence and ability to articulate has always astounded me. I always have to read your posts ten times, just like Greenspan, to begin to interpret your meaning. That is a compliment by the way. I am no match to debate you. My guess is you are an attorney.

At least the ETFs must hold their metal (big if, if performing as designed) in allocated and audited storage. And yes, they do hold physical metal(lots of phyical). Of course, we all understand that allocated storage is not subject to physical shorting. An entity shorting an ETF is shorting shares, as you state, not the metal itself. Just as those those buying--own shares--not metal. But from what I understand, for every share (basket issued)---there must be physical backing it. Shares that are shorted do not result in the sale of physical---As opposed to redemption of shares. In the future, lets explore how this could affect the physical price discovery mechanism. Do you honestly feel that shorting ETF shares would drive the physical market? Maybe so, please explain how?

Also, wouldn't you consider it a "big convenience" for the average individual with an IRA, or a pension fund without the ability to invest in physical, to participate in the gold market via an ETF. The hundreds of tons that have been taken off the derivatives market since the introduction of the ETFs has (in my opinion) had a tremendous (favourable) impact on the price of the physical market.

Granted, self directed IRAs can be set up to invest in gold. But, you still don't get to take possession of your metal. You can't directly deposit metal that you currently own. You must rely on a custodian to hold your metal. I'll bet you can't ask for delivery of that metal. I'll bet you have to liquidate in USD. Think about the setup and maintainace fees. ETFs do have their place. Don't cook the goose that lays the golden egg.

Again, I reiterate, PG and PS represent the most desirable and ultimate form of precious metal ownership, but lets not be so intolerant to appreciate other closely allied products that may be the only alternative for some investors.


GOLD FINGERIs gold money?#1466778/16/06; 23:54:21

NO MORE then what??

I was reading in the and found some very informative reading. One write up in particular really started me thinking... Aristotle (6/30/99) The Five Part Series on Gold, Oil, and Money in the Free Market.

If Gold has been and will be considered can we exchange it for fiat when it becomes $2,000.00 an ounce? Or do we just issue notes like the bank? The few articles are good and I am still pondering on the idea that wealth and MONEY!

TownCrierNoble1, being an engineer not prone to flights of fancy, I'm "keeping it real"#1466788/17/06; 00:11:55

Accustomed to the typical absence, I'm usually pleased with any feedback at all, and so I'll thank you all the more for this and the additional compliment. Thank you.

Among the lot of gold advocates who do double duty as intrepid proponents of the ETF, I think that they, for the most part, have rushed in on a whim and have not critically absorbed the requisite breadth of details to fairly assess the situation in any degree approaching totality.

And who could blame them? Unless you are a person predisposed to this line of investigation and thought, it is sure to be put aside as an insufferably dry task.

While I won't pretend that this post can serve as surrogate for that intimate process, I will at the very least try to offer some key highlights to help fuel any eager adventurers along on their difficult journey.

To begin at the most natural beginning point in this abbreviated session of shared cognition, it serves us well to scrutinize that point you have made in common with many others as if it were the most glorious characteristic offered by the ETF -- namely, the notion that it possibly serves as the only avenue of "physical" gold investment available for participation by some individuals and funds.

Lord A'mighty, it's a miracle!! Thanks to the ETF, or so this line of reasoning would have us believe, a great deal of physical metal has been "taken off the market" by these otherwise palsied investors. Supposedly, this shabbiest of thinking informs us, were it not for the avenue of the ETF we are to believe that all of this pent-up investment desire for gold would just evaporate in the face of the old roadblocks (i.e., lack of ETF avenue), and apparently all of the metal not consequently so absorbed by the very presence of the ETF would alternatively flood the market and suppress the price/value due to lack of buyers.

If not fatuous in totality, it certainly is in large part.

Or, to see this same thing from the reverse angle, consider the goldless investor who finds himself newly with a desire for diversification into gold. If the avenue of the ETF allows him to divert a fraction of his pension funds into the ETF shares, there is indeed a great likelihood that he will then consider that itch suffiently scratched. That is, he will consider that he has now all the gold he needs, the matter closed, and he will not pursue the idea of gold ownership any further -- not to a more tangible conclusion following a committed pursuit of personal gold ownership of coins and bullion.

There is no telling if -- nor does it really matter(!) -- if the shares of the ETF he has naively purchased were among "original" shares created upon the transfer of actual gold into the Trust's allocated account, or if the shares are among the less viscerally satisfying -- that is, those that have been artificially, yet effectively, created above and beyond the gold-backed shares via the stock market brokers' traditional borrowing and shorting facilities.

If a reader doesn't understand that very fine point of share expansion, I'm afraid that they have much homework to do. However, the important thing to grasp is that shares above and beyond the naively anticipated "gold-backing" can be brought into existance to appease gold appetites, thus helping to ensure that it does not pursue metal any further through traditional physical avenues.

In other words, the ETF, through original shares and borrowed/short shares, can help bullion bankers expand a given supply of physical gold into a means to provide the very real (yet deceptive) appearance/effect of fulfilling (falsely) the desires of more investors than would otherwise be the case.

To my mind, on the basis of mere morality and beyond, it would be better to strip away this charade completely, even if it means that it undoes the ETFs primary benefit thus causing some unspecified body of investors to be inconvenienced to seek recourse to the more traditional gold investment avenues to attain their desired level of diversification.

it seems to me that consequently, barring the ETF, the gold it presently holds in trust would become well spoken for -- perhaps several times over.

Speaking of which, it would serve our purpose well to briefly speak on the disposition of this gold in the first place. Ill-informed ETF proponents like to claim that the ETF managers must acquire ever more gold as people buy ETF shares. Not so. Once a supply of original shares has been created (in conjunction with metal allocation), it is simply these shares that trade back and forth, further supplemented, as I stated earlier, by quantities borrowed short.

New "full-bodied" shares with "gold backing" are created only at the pleasure of the Authorized Participants -- that being the bullion banks who retain the unique authority to create or redeem shares with gold deposits or withdrawals from the Trust's allocated account. And on this very fine point a person must strive against the impossibly difficult task of understanding that the quantity of metal so entrusted (for share creation) need not itself present a squeeze upon the open metal market in the course of its commitment. Why? Because this metal may already reside in the Authorized Participant's possesion, or it may be gently borrowed from unallocated accounts from a peer, or a combination of both, and more.

How long does it take, with fancy paper maneuvers, for a bullion bank to whether a speculative storm? I should venture the seasoned guess that a vested interest (such as a bullion bank) has more staying power than the ill-informed and ill-equiped masses who simply pursue the shifting scents of potential monetary gain with a sense of greed and attention that is no more focused than a puppy amongst a flock of butterflies and scattered candies.

And on that note of easily-distracted investor psyche, this seems like the perfect opportunity to spare myself some typing for a change and introduce you to some comments own near and dear Mike Kosares recently offered in an e-mail discussion on this very topic. As I have another look for a suitable excerpt from among his comments, I see this one bloc where he actally provides a tidy recapitulation of some of what I've tried to say above, and then gets on to the point at hand regarding the effective bullying of those humble masses of potential gold investors:

MK writes,
"ETF's may have had a postitve impact on the gold price in that a whole new market has opened up for the physical metal -- a market that might have otherwise gone untapped -- but this fact is a separate consideration from the shorting aspect. In fact the ability to short might nullify the physical offtake. On top of that those wondering about the effect of ETFs on the overall market shouldn't turn a blind eye to the volatility fund traders (the prinicple and intended market for ETFs) bring to the market. That volatility is already manifest in the market and could become a greater influence as volume increases. Let's not forget that in many instances the typical fund trader is in the precious metals market for short-term cash profit, not long-term asset preservation like the average upper-middle- and middle- class investor."

Noble1, you also got into the tangent of IRAs, and for the most part your suppositions on gold deposit and withdrawal from a trust company's fiduciary account are terribly erroneous. This post has become overly long and I'll leave elucidation on that score to another day, but in the meanwhile you would strike nearer the truth of the matter to take the opposite of what you said in your second-to-last paragraph, and would be better served hearing what George Cooper, not I, could testify on that particular matter.

Best regards,

TownCrierGOLD FINGER, "Is gold money?"#1466798/17/06; 00:23:42

As you read further into the Hall, you will discovery that Aristotle famously recanted. Or as memory serves me on the gist of it, he took great wind to explain the root of the problem is that gold had indeed been USED as money (or said more properly, as a currency of a bullion-based monetary-esque system), and it was nothing other than this very monetary usage that resulted in the obfuscation of gold's value. Acting with FOA they demonstrated a higher inherent value simply as scarce property, to be best employed as a reserve asset residing outside of monetary attachments.

Very heady stuff, and very much worth the effort.


USAGOLD / Centennial Precious Metals, Inc.New vistors and established clientele, alike, your participation is welcomed...#1466808/17/06; 00:54:34

South American gold

August Buyers' Group
South American Gold!
Six Countries. Twenty coins.

Call and Save
1-800-869-5115 (Ext. 100)

The Invisible HandVenezuela to increase oil sales to China#1466818/17/06; 02:26:06

Venezuela plans to increase its oil sales to China by 50,000 barrels a day by the end of the year, the country's oil minister said.
Though the United States remains the No. 1 buyer of Venezuelan crude, Chavez's government has sought to sell increasing amounts to a variety of other countries in recent years.


"Though the United States remains the No. 1 buyer of Venezuelan crude …"
Let's hope for the former that this lasts.
Venezuela does have unlimited supply, does it not?

The Invisible HandThe equation #1466828/17/06; 03:40:34

USAGOLD Daily Market Report (8/16/06; 16:26:25MT - msg#: 146675)
Page Update!
gold for December delivery closed up $6.10 at $639 an ounce on the New York Mercantile Exchange.
The contract lost more than $29 in the last four sessions as traders moved to unwind the terror premium built into prices during the conflict between Israel and the Lebanese Hezbollah group.
Lebanon army starts to move south
Lebanese troops have crossed the strategic Litani river to take up positions as Israel's army pulls back.
France has confirmed it is ready to command an expanded international force working along with the Lebanese army, but only under certain conditions.
Israel has already passed control of some of its positions in the south to the current United Nations force there.
It indicated that a full withdrawal from what was a stronghold of Hezbollah could take weeks or even months.
Israeli Foreign Minister Tzipi Livni said: "If it takes time until the international forces are organised, it takes time until Israel withdraws. THIS IS THE EQUATION."
French Defence Minister Michele Alliot-Marie has confirmed that France is ready to lead an expanded UN force in Lebanon but only with a clear mandate and sufficient resources.
It seems that these have yet to be finalised, our correspondent says.

Madam Livni is arrogating herself (c.q. the Israeli Defense Forces) the (offensive) right to continue "cleaning" South-Lebanon from Hezbollah.
She's not even hiding her words.
Madame Alliot and the BBC confirm that the UN will never come.
And gold would unwind the terror premium?
The "real issue" that is being ignored is the systematic destruction of any prospects for a viable Palestinian existence as Israel annexes valuable land and major resources (water particularly), leaving the shrinking territories assigned to Palestinians as unviable cantons, largely separated from one another and from whatever little bit of Jerusalem is to be left to Palestinians, and completely imprisoned as Israel takes over the Jordan valley (and of course controls air space, etc.). This program of "hitkansut," cynically disguised as "withdrawal," is of course completely illegal, in violation of Security Council resolutions and the unanimous decision of the World Court (including the dissenting statement of US Justice Buergenthal). If it is implemented as planned, it spells the end of the very broad international consensus on a two-state settlement that the US and Israel have unilaterally blocked for 30 years matters that are so well documented that I do not have to review them here.
So, for the time being, this amateur will hold to the belief that there is indeed some kind of irrational anti-Israeli sentiment afoot around the globe and that it is Israel that holds the moral high ground in at least this current conflict.
Transcription of telephone conversation on August 3, 2006
From Israeli Embassy, Washington D.C. Telephone Number (202) 364-5582.
to unidentified individual at AIPAC [American Israel Public Affairs Committee], Washington D.C., Telephone Number (202) 639-5201

A. The terrorism card works wonders. We were going to release a statement that Arabs were going to attack an El Al plane on takeoff, with rockets….

A. Probably leftovers from the CIA businesses in Afghanistan.

A. Let's not get into that now. But this scare would only affect flights to Israel and we don't think it would have any impact on the election.

B. Well then, why not have these attacks aimed at American aircraft? Where would they attack from?

A. Say at the perimeter fence lines at airports. Or better still, why not a plan cooked up to smuggle explosives on board transatlantic flights to or from America? Something clever that will catch the public imagination….

B. That stupid bomb in the shoe routine?

A. Don't knock it. It worked, didn't it? We can always find some suckers with a bent to this we can fill up with real enthusiasm and then turn them in, complete with plans. They actually believe they are going to paradise and virgins and we have another propaganda coup. Let's give this some effort. You know, a terrified public will not want to change horses in mid stream. So far, the Rove people have a good line: If you're against the Republicans, you're encouraging the evil terrorists sthick.
Pro-Israel PAC Contributions to 2006 Congressional Candidates
President Mahmoud Ahmadinejad, who usually talks far more than he thinks, condemned the US for supplying Israel with the weapons it used on Lebanese civilians - perfectly true. But he did not say Hizbollah's missiles come from a new-generation Iranian arsenal that did not even exist during the 1980-88 Iran-Iraq war. While the US will be keen to assess the effectiveness of its weapons - albeit largely used on civilians - no one should doubt that Iran will also be assessing the success of its new Fajr missiles - and their effect on the Israeli army.
Why of course the people don't want war ... But after all it is the leaders of the country who determine the policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship ...Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger."
-Hermann Goering, Nazi leader, at the Nuremberg Trials after World War

The Invisible HandMercoSur and SCO parallellism#1466838/17/06; 04:24:41
Chávez is trying to change the agenda of the Common Market of the South (Mercosur). His proposals, we warned, could spoil the integration process of member states.
"First of all, a difference must be made between Chávez and Venezuela. Obviously, we should welcome Venezuela as a member of Mercosur. The problem is Chávez." Reference was made to recent incorporation of Venezuela as full member of the economic bloc, in addition to Argentina, Brazil, Paraguay and Uruguay.
"Chávez wants to change the Mercosur agenda in a ludicrous manner. His first proposal when joining the bloc was the establishment of a South American army," he added
Mercosur or Mercosul (Spanish: Mercado Común del Sur, Portuguese: Mercado Comum do Sul, English: Southern Common Market) is a customs union between Brazil, Argentina, Uruguay, Paraguay and Venezuela, founded in 1991 by the Treaty of Asunci--n, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, peoples, and currency

The Invisible Hand: note that Chile is no member
Monday, August 14, 2006
· In a region where loud voices of integration shout over a reality of failed trade policies, Chile's alternative to access to the Pacific may be a viable solution.
By Sam Logan
Chile sees MercoSur as a hollow institution, one that exists more on paper than not. Matus and other Chilean trade negotiators point out that MercoSur's layer upon layer of disputes is proof that the organizational commitment at an institutional level is just not present.
As an OBSERVER OF MERCOSUR, Chile has likely learned from mistakes made by the custom union's members
Chile has signed FTAs (free trade agreements ) with CHINA, SOUTH KOREA AND NEW ZEALAND.


The Invisible Hand:

Chile observer of, not at, MercoSur?
What was that again about Iran and Shanghai Cooperation Organization (SCO)?

And Venezuela,
a real MercoSur member says Wikipedia,
the incorporation of Venezuela as full member of MercoSur is however only recent, says El Universal,
to increase oil sales to China, one of the two pillars of the SCO?
The Invisible Hand (8/17/06; 02:26:06MT - msg#: 146681)

Chile signing its own FTA with China.

-Venezuela's membership of MercoSur dates only from July 04, 2006.
-and, surprise, just like Iran at the SCO, so is Chile an observer member of MercoSur, not just a special guest like the great Fidel.
July 22, 2006
Argentina hails Venezuela Mercosur membership
Venezuela has South America's largest petroleum and natural gas reserves. It joined the club on July 4.
The Summit's full members are the presidents Nestor Kirchner of Argentina, Tabare Vazquez of Uruguay, Nicanor Duarte of Paraguay, and Hugo Chavez of Venezuela. The presidents of OBSERVER MEMBERS, Evo Morales of Bolivia, and Michelle Bachelet of CHILE, also attended. Cuba's president,


The Invisible Hand18.4 % + 24.4% = 42.8 % price increase in five months#1466848/17/06; 04:38:12

The energy company Powergen has announced its second round of domestic price increases this year.
Its gas prices will go up by 18.4% and its electricity prices by 9.7% from 21 August.
It blamed the latest move on the rising wholesale cost of gas which it said had climbed 87% since the start of 2005.
The latest increases bring Powergen into line with all the other major energy suppliers who have all raised prices for a second time this year.
In March Powergen increased its gas prices by 24.4% and its electricity prices by 18.4%.


42.8% price increase for gas in five months

9.7 + 18.4 = 28.1% for electricity in five months.

Rest reassured
-PowerGen ( is not an American corporation
- gold, or at least the gold standard, is a barbarous relic

The Invisible HandBritish press review #1466858/17/06; 05:07:14

A mere recession and whoops Armageddon will be averted,,8209-2313278,00.html
Inflation is already out of the box, in the view of a growing number of economists, shared in some parts of the Fed. The central bank's favoured measure of inflation is the GDP deflator for personal consumption expenditures. If that sounds a bit technical, focus simply on the number. After stripping out the volatile food and energy components, it was running at 2.9 per cent in the second quarter of 2006, approximately unchanged from the 3 per cent rate of the first quarter. This is way too high for the proper comfort of even the most tolerant central banker and the indications are that it will go higher, even as the economy slows.
Since a return to an inflationary mindset is probably the single most alarming thing that worries policymakers, the Fed should, on this view, keep pushing interest rates higher. A recession may well simply be unavoidable.
In the 1990s, Norman Lamont, Britain's most underrated Chancellor, was flayed on the altar of public opinion for saying that rising unemployment was a price "well worth paying" to squeeze inflation out of the system.
It was anathema, of course, but economically gold-plated — and the difficult decisions made at that time helped Britain eventually to enjoy its longest period of sustained growth in the past couple of centuries.
For the Fed, and the world, a recession may be the price that now needs to be paid to avert a longer-term catastrophe.

The Invisible Hand: "gold-plated" was does that mean?;jsessionid=LAILK1QMCYIADQFIQMFCFFOAVCBQYIV0?xml=/news/2006/08/17/nterror17.xml
A majority of British people wants the Government to adopt an even more "aggressive" foreign policy to combat international terrorism, according to an opinion poll conducted after the arrests of 24 terrorism suspects last week.However - by a margin of more than five to one - the public wants TONY BLAIR TO SPLIT FROM PRESIDENT GEORGE W Bush and either go it alone in the "war on terror", or work more closely with Europe.
The Government is to help tackle Britain's £1,200bn consumer debt mountain, with plans to fund more free advice and improve consumers' financial knowledge.
The German-owned supplier blamed an 87 per cent increase in the cost of buying wholesale energy to sell on to its customers in the UK since the beginning of last year.


The Invisible HandInflation in everything#1466868/17/06; 05:25:23
WASHINGTON, Aug. 16 — The number of roadside bombs planted in Iraq rose in July to the highest monthly total of the war, offering more evidence that the anti-American insurgency has continued to strengthen despite the killing of the terrorist leader Abu Musab al-Zarqawi
BRUSSELS, Belgium — Inflation in the 12 nations that use the euro fell to 2.4 percent in July, the EU statistics agency Eurostat said Thursday, revising downwards an earlier forecast of 2.5 percent for the month.
Inflation is still well above the ECB guideline of just under 2 percent and the bank is expected to hike its key lending rate beyond the current 3 percent by year's end.
Eurostat said high prices at the gas pump and the cost of natural gas for heating were the largest factors pushing up inflation over the year, while lower prices for telecoms and clothes had a lesser, calming effect.
The EU expects high oil prices will likely continue to trigger higher consumer prices in 2007. Inflation has been driven up by oil prices as well as increases in the services sector.

The Invisible HandWar inflation between Iran and Israel #1466878/17/06; 05:32:21

In a virtual attack on Iran, Israeli hackers broke Tuesday the diary of Iranian President Mahmood Ahmadinejad. The web-site didn't operate nearly for the whole day, as Iran fixed the bugs only closer to the evening

Mr. GoldfingerThe USD#1466888/17/06; 05:36:51

Although it appears to be at support now, the charts are not looking to kindly to the once reserve currency. Many indicators are showing bearish divergences. The same patterns were seen in March of this year when the USD started it's fall from .90 to .84.
This of course bodes well for gold as we also enter a period of seasonal strength in the metal.

The Invisible HandJimmy Carter interview by Der Spiegel#1466898/17/06; 05:49:41,1518,431793,00.html

There's no doubt that this administration has made a radical and unpressured departure from the basic policies of all previous administrations including those of both Republican and Democratic presidents.
I don't think that Israel has any legal or moral justification for their massive bombing of the entire nation of Lebanon. What happened is that Israel is holding almost 10,000 prisoners, so when the militants in Lebanon or in Gaza take one or two soldiers, Israel looks upon this as a justification for an attack on the civilian population of Lebanon and Gaza. I do not think that's justified, no.
I think that at this moment the United States and Israel probably stand more alone than our country has in generations.


To repeat
The Invisible Hand (8/17/06; 03:40:34MT - msg#: 146682)
The equation
Madam Livni is arrogating herself (c.q. the Israeli Defense Forces) the (offensive) right to continue "cleaning" South-Lebanon from Hezbollah.
She's not even hiding her words.
Madame Alliot and the BBC confirm that the UN will never come.
And gold would unwind the terror premium?

Noble1ETF Short Shares msg#: 146678#1466908/17/06; 07:24:05


"There is no telling if -- nor does it really matter(!) -- if the shares of the ETF he has naively purchased were among "original" shares created upon the transfer of actual gold into the Trust's allocated account, or if the shares are among the less viscerally satisfying -- that is, those that have been artificially, yet effectively, created above and beyond the gold-backed shares via the stock market brokers' traditional borrowing and shorting facilities."

Thank you. Light bulb goes on in my head.


goldquestThis used to be the best GOLD discussion site#1466918/17/06; 07:27:32

on the web. Not anymore.
After reading the filth in message #146682, I wouldn't recommend this site to anyone now.
Randy, I ask that you purge my handle and any information you have on me, from your files. Thanks, goldquest

YGMThe Invisible Hand & Others w/ Political Agenda's#1466938/17/06; 09:32:46

Please, I can't speak for others here, but I sure get tired of the war & politics crap. We all know you're a very well read and intelligent guy but some of this stuff holds no interest for many. We come here for "GOLD" commentaries. You've given alot in the way of Gold info over the years, can't we get back to that?
MKDiscussion about the Discussion Group#1466958/17/06; 09:37:46

We have made numerous attempts -- posted countless requests -- to keep this forum from going political. There is a constant struggle here between the individuals who want to force the posting to circle (always) back to gold and economic themes, and those who want to talk politics. Frankly, the two are intertwined and cannot be separated at some level. Obviously, this opens the door to those who exploit this forum for their own political purposes. I don't know precisely what it is about the post you mention that you find any more offensive than a couple dozen or so other posts over the last several days of the same general content. Where it differs, I'm at a loss to conjure. I can say though that we are as exasperated as you and not with just a single poster but the direction here.

I can say this however. It is my opinion and has been for a very long time that the quality of posting on the internet in general has declined. At some locations, it has declined disastrously. Kitco, for example, the first quality forum on gold, has closed down its precious metals forum and is in the process of revamping its approach. I wish my old friend, Bart Kitner, well in this endeavor, but I don't hold out much hope that the typical problems which visit a forum will be resolved by his request for volunteer forum marshalls. That, in itself, is likely to become as political as the posting he hopes to direct toward productive ends. We have avoided many of the problems that submerged other discussion groups by posting rules and insisting that they be observed. In that we have stood out and reaped the rewards.

At USAGOLD, we have seen a migration of sorts over the last couple of years. Our Daily Market Report consistently outdraws the Forum. Previously the Forum greatly outdrew the DMR. Why did this happen? That's a question each and every participant and lurker needs to consider (if you value this forum). Some of our content and update pages receive much stronger participation than we ever anticipated. At the same time the Forum continues to draw a large following on a daily basis though growth has slowed down considerably.

All traffic at USAGOLD has been on a consistent uptrend since day one of this website to the current position of one of the lead gold sties in the world -- a remarkable achievement in itself. I can tell you for certain that large numbers of those with an interest in gold and all it encompasses come to these pages -- including the forum. For example, whenever I post an invitation to join the USAGOLD NewsGroup, we get substantial response. We had nearly fifty new sign-ups from the post I made two days ago thus far and they are still coming in.

Here is what I have to say about the whole situation:

This forum will be what we make it. Those who complain about the content here (either on these pages or privately [I am not directing this at goldquest who posts here regularly and has earned the right to voice a complaint] and then fail to post something of value themselves simply want others to improve this forum without having to put a little effort in themselves. I don't know exactly how many people have registered to post, but I would not be surprised to learn it's in the area of 9,000 to 10,000 by now. I wouldn't be surprised to learn that we have had over 100 registrations already in the month of August. How many of these registrations translate to a post? Not many. I would say 95% who have requested a posting code have never posted and I've always wondered what that is all about. Theories abound and are discussed at the firm ocassionally.

At the same time, our attempts to keep this forum on subject are constantly circumvented and turned back by the posters themselves -- many of whom have their own agendae. We try to weed these out and send them packing, as many of you aleady know.I will repeat again that we have never taken this forum off an experimental basis and reserve the right to close it any time if it no longer suits the aspirations of the firm.

On the positive side, by and large, we have a good group here, and this forum has been a major positive for our clientele, the firm and the general public. Yes, the posting privilege is abused but that quite often is the exception.

Consider this, and I'm speaking to all here: If you, or anyone else doesn't like what they see, the solution is simple: Take the forum in another direction. Do it yourself. You can't expect me to make this a better place for you by myself. I've tried. I can't do it. Randy can't do it by himself. We would very much like to see substantially wider participation and that is why we have the contests, the check in days, etc. The answer isn't to build greater participation or more posts from an ever smaller group, but a general rise in the content level by simply attracting a greater number of posters. You don't have to be Robert Mundell to post here. We can have conversation on several levels of understanding all at the same time. Believe me, I know from my day to day discussions with investors, some of them posters here, that there are all sorts of levels of understanding about gold and its economic, financial AND POLITICAL manifestations.

I know that many of our best clients and deep thinkers out there don't bother to post, but they like coming here to keep up with the news. I would appeal to all of you to contribute something here in order to make this a better forum. If you don't, we may lose it. Not because the firm decides to close it down, but because it becomes so diluted with special interest posting that it no longer holds value for you as a gold owner.

Think about it. The choice is yours.

At the very least I would like to see some opinion on this particularly from lurkers, new visitors, and first time posters, but from our esteemed regular group as well.

I'm on my way to the office and I wanted to just get this up as it was written. If there are typos, left out words, etc. please forgive.


YGMMK..#1466968/17/06; 09:47:37

Michael..I think most realize Gold & politics are intertwined and cannot at times be separated, but it's most annoying (I don't complain very often) when the war/political posts become repititious. Over the last 8-9 years (??) that I've been here many soap-boxer's have come and gone. Years ago I used to annoy a few (I'm sure) w/ my GATA soap-box but at least GATA was/is doing a great service for Gold Advocates. The webmaster is still the "Master" w/ the 'Delete' option. It's been used on me a time or two over the years :-)

BTW...Irregardless this "IS STILL" one of the best of the few Gold sites on the web...Regards; Ken Reser

YGMWeirdest Gold Use Category.... (What Next?)#1466978/17/06; 09:54:16

500 euro Irish cocktail on sale
Updated: 2006-08-16 22:47

DUBLIN - Ireland's most expensive cocktail has gone on sale at a Dublin hotel -- priced at a sobering 500 euros (340 pounds).

The "Minted" cocktail -- a vanilla and chocolate Martini on sale at the Mint Bar in central Dublin's Westin Hotel -- includes vanilla-infused vodka, 200-year-old cognac and flakes of 23-carat gold.

The drink comes in a designer crystal glass with chocolate truffles served on the side.

The pricey tipple, the equivalent of a month's groceries for an Irish family of four, joins a growing league of extravagant global cocktails -- with some bars now even popping a diamond ring into glasses for those really wanting to splash out.

TitanRe: Discussion about the Discussion Group#1466988/17/06; 10:30:52


Since you asked, what I would find more useful about the group is anything to continue helping me understand what reasons for the movement in the price of gold on any given day might be. I try to keep up with this forum almost daily and often I DO find explanations in people's messages for what they think might be going on in the world to affect the POG. But other times there is a big drop and I come here and no one has said a word about it.

I know you and Randy aren't going to want to have that be your "job" -- you provide the forum, and we're all grateful for that... but perhaps in thinking forward, you could further somehow support newcomers and novices in PM investing by maybe pointing to other news sources with explanations of current events. Members tend to do that on their own, and Randy does it as well in his messages. So there may not be any more you could do than you already are. But I don't think it would hurt your business to allow people to discuss and point to other sites that explain things not already covered at USAGOLD.

Hope this helps a bit... much of the discussion here is over my head (and I suspect that might be the case for those thousands of people you say signed up but never post). So anything to help the unwashed masses better understand the forces behind gold investing will always be good for you guys and all of us!

Clink!@ YGM#1466998/17/06; 11:09:07

I can't say that I have ever really had to scrimp and save to eek out my existence over the years, but, nevertheless, I was brought up by parents who insisted that I never waste anything (don't forget that postwar rationing lasted for some items until 1955 in the UK). I don't think that I would use the word "weird" to describe the use, but I sure would to describe the people who order one !

@ Titan. The problem of having to ascribe a reason for every market move is extremely tricky if you try to look for "logical" or plausible reasons - especially current affairs on a given day. This is why most of the business reporters sound so assinine because a) they give the impression that they don't really understand what is going on, and b) their statements are often contradictary from week to week. Therefore the vast majority of posters, ordinary joes that we are, say nothing rather than look foolish. After all, it's better to have no posts at the Forum than ten silly ones.
Today is a case in point. My take ? If you look at the PoG chart from May, there has been a big pennant formation being developed. The point of the pennant is somewhere around the end of this month. Pennants end with a breakout either up or down. Logically, the price should break up, bearing in mind all the other economic factors that we hear about here. However, an entity (or entities) in a serious short squeeze situation may see benefit from "burning" some gold to force it, even a little, below the breakout down line. That would cause some of the trading programs to sell, expecting even lower prices. Will it work ? Well it has in the past, but over the years the effect has been getting less and the recovery swifter. We have seen a number of these "attacks" over the last month. This might be the charm for the shorts, maybe not.
Of course, all the above might be complete drivel :^] and my conscience only allows me to expose myself to ridicule once a month tops. So don't be looking for Trader Clink!'s markety summary tomorrow.

@ MK. Aha ! I like a challenge. I introduced a topic (on 08/05/06, I think) hoping someone might have more info, but no-one took the bait. Time to do my own research .....


Chris PowellSubjection to editing is what makes this forum so valuable ...#1467008/17/06; 11:09:16

... to anyone looking for insight and
perspective on the precious metals, and
so superior to other forums -- editing
for RELEVANCE and compliance with a few
basic rules.

The lack of editing for relevance is why
the Kitco forum long ago lost value, why
the Kitco forum came to require far more
time and effort to scan than it was worth.

The editing hand of our host here has
been very gentle, kind, and indulgent,
but it has been used enough to keep most
of us in line most of the time. If that
hand was more assertive, the forum's
value, immense as it is, might even
increase. But then you can't blame our
host for not wanting to hurt feelings.

I don't know about others, but I don't
come here because I want to hear the
politics of the Middle East argued, as
much as the general fact of conflict
in the Middle East may influence the
gold price and should be acknowledged
for doing so. There are other forums
for arguing that politics.

Flatliner@MK's Discussion#1467018/17/06; 11:27:16

I do have to admit that the gold education provided through the archives of USAGold is top notch – bar none - and the support provided through this forum is invaluable. If you look closely, you'll most likely find that the posted words are tied to gold and how it forms the framework for just about everything else that we see today. Until I studied the archives thoroughly, I only saw the surface problems. When it really comes down to it, gold provides the bedrock that helps explain many of the workings that make headlines on a daily basis. I am grateful for having found this site and, still, highly recommend it.

One of the key reasons why I've bought into physical gold holding is because it's at the root of both political and financial actions. Even though the sky is falling everyday, the wealth associated with holding gold never changes. It's this personal point of view that reshapes *my* world and gives me hope for the future.

Today, I vote with gold. Currency is a tool to get to gold. Actions are a means to get to currency.

If you understand these words, you will see that gold is making advances in the real world in the dollar's battle against it. The dollar takes force and laws to prop up it's function. Gold stands alone.

If you really think about it, the dollar is falling while staying in the same trading range.

Hold gold in hand and have hope. Then, be a constructive member of society and be the instrument for change.

Sierra MadreIMAGINARY MONEY#1467028/17/06; 12:11:33


Taking up your invitation for more posts on monetary subjects and less on the very perturbing political situation in the world today, here are some thoughts which might be of interest:

1. All money in the world today, is irredeemable money, that is to say, it is FIAT or artificial money."Monopoly" money with a government seal, in other words.

2. All of the money in the world, and specifically in the USA, is of TWO kinds:

a. Tangible money - Federal Reserve notes and coins, and

b. IMAGINARY money.

Tangible fiat money and Imaginary fiat money together, make up M-1. (If you want the definition of M-1, please go to the Federal Reserve site and you will find it there. Briefly, M-1 is Federal Reserve notes, coins, plus demand deposits such as checking accounts, and some other technical stuff.)

M-1 is running at about 1.375 trillion dollars, and the magnitude of the component of Federal Reserve notes plus coins is something of a mystery. The Fed says there is some $700 billion of Fed notes out there, but of these, only about half circulates in the USA. So, let's take $350 billion as the sum for the Fed Notes plus coins component.

That gives us a breakdown of 25% (roughly) for Fed notes and coins (tangible FIAT money) and 75% for - checking accounts and other types of accounts in banks (IMAGINARY FIAT money).

If you, dear Forum reader, think you have "money in your checking account" (and I hope you have some!) then you are really IMAGINING that you have money. For you see, when you deposit a sum of money in your bank, you are really making a loan to the bank.

Now, a loan is really a conceptual thing. You think and believe your deposit (loan) will be repaid when you call for it. The borrower (your bank) thinks and believes it will pay the loan from you, and intends to do so, no doubt. But all of this is in YOUR mind, and in the "mind" of the BANK, or of its officers. It is all conceptual, or, to use a better word, IMAGINARY.

So, the money (M-1) is 75% IMAGINARY FIAT. And, the thing gets even more imaginary as we progress up to M-2, and last of all M-3, which we are not allowed to know any longer - since February of this year. ALL of the additional components added to M-1, to make up M-2 and M-3, are IMAGINARY FIAT. Vast piles of it!

So, that's what the USA is running on. A lot of imagination!

That is what the whole monetary system of the USA - and of every country in the world - is all about: IMAGINATION.

We the sheeple are living in a world of IMAGINARY wealth. That suits the bankers of the world just fine. Because of this terrible fact:

Every penny of money in the USA is the result of a debt incurred by someone - not necessarily yourself, of course - when that someone borrowed from the bank. The bank made the loan and credited a checking account with - IMAGINARY MONEY. The borrower then uses the imaginary money to make a "payment" of imaginary money to someone, for a purchase. And the seller takes the imaginary money, and puts it in HIS checking account, and goes on pays someone else IMAGINARY MONEY. And so it goes.

So the American people - as people all over the world - have to go into DEBT in order to have IMAGINARY MONEY. A banker's dream!

And, IMAGINARY MONEY is money that can disappear as quickly as any dream, which is also imaginary. All it takes is either runaway inflation (quite likely), which destroys the market value of imaginary money, or a severe deflation, which is possible though less likely (perhaps!)where the banks simply cannot pay their debts of imaginary money to depositors - as happened in the Great Depression.

Bottom line: be sure you have some REAL wealth to stand upon, and not either tangible FIAT (bills) or IMAGINARY FIAT (ckecking accounts and everything else that is only an ACCOUNT)


Buy gold at any price.

Thanks for reading!


GOLD FINGERFor me....#1467038/17/06; 12:14:42

Gold, commodities, OIL, and politics have become even more intertwined. I think most of us never like to discuss politics and religion under the GOLD umbrella, but how can you actually avoid it?

There are so many variables in this game and that's what causes this to be so volatile.

We have corruption and Hedge Funds and Mining operations that are being seized by governments and more.

To cut out all would be a mistake. To limit some, we may miss out on a point.

All this drama now confirms what I have always felt about the precious metal GOLD......IT'S AN EMOTIONAL METAL and carries lot's of energy!

So is Gold good or Bad?

Are gold bugs Crazy?

I think it's a combination of the two.

Just like the good ole` Gold Rush days!!
They are still searching for the "Lost Dutchman's Gold mine"

Have a Shinny Day. I sure will......

P.S. I know this is a gold discussion group. I can over look things that are not important to me. There maybe one line that might really make me think deeper! I AM ANTI CENSORSHIP!! I am not a cry babe!!

YGMRussian Gold/Dollar Reserves Continue to Rise#1467048/17/06; 12:16:23

Russia's gold and currency reserves show highest one-week rise

RBC, 17.08.2006, Moscow 13:26:09.As of August 11, the Central Bank's gold and foreign exchange reserves stood at $277bn, which is $10.1bn, or almost 4 percent above the previous showing as of August 4. This has become the highest one-week rise in Russia's history, fueled by the Bank of Russia buying dollars on a large scale on the home market. On August 10 alone, the Bank could purchase $7bn-9bn at two special sessions on MICEX, traders estimate.

The reserves had been growing for 8 weeks in a row, gaining a total of $31bn, or 12.6 percent over the period. Starting July 21, that is in the previous 20 business days, the reserves surged by over $21bn.

By and large, in a little more than 7 months of 2006 Russia's gold and currency reserves gained nearly $100bn. As a result, Russia, now firmly entrenched in the third place in gold and currency reserves, has narrowed the gap between itself and the world's leaders, China and Japan, with reserves totaling $940bn and $870bn respectively.

Sierra MadreRussian reserves#1467058/17/06; 13:01:37

The Russkies don't seem to want to break down the reserves into GOLD plus foreign currency reserves.

What's important is the GOLD component.

The rest is - IMAGINARY reserves.

The world reserve currency is - like all others - an IMAGINARY reserve with no reality to it.

The Russians, like all the rest, are relying on what Fisher of the Dallas Fed called "a faith-based currency", in other words, on something IMAGINARY.

Such is our world.

"Dreaming as the Summers die,
Dreaming as the days go by;
Ever drifting down the stream
Lingering in the golden gleam.
Life, what is it but a DREAM?" LEWIS CARROLL.


Cage RattlerGold down today#1467068/17/06; 13:05:08

Earlier there was some talk that the Bundesbank had given the BOF 5 tons of gold to sell over a term. Also, the term idea seems linked to a repo transaction.
Sierra MadreFURTHER on Russian reserves growth...#1467078/17/06; 13:07:34

The Russian C.B. buying billions of dollars for reserves is not being bright.

Purchase of dollars means they PAY for them with rubles. That means more rubles in circulation, and that is: INFLATION.

The Russkies are inflating their money supply by buying dollars for reserves. IMPORTING INFLATION FROM THE USA.

Not good for their economy.

But all CBs everywhere feel really good about swelling amounts of reserves - while they are pumping more money into their economies.

World inflation is taking place. Won't end well.

buy gold at any price

goldquestThanks#1467088/17/06; 13:22:26

Taking the f word out helps, but imho, the whole message should have been deleted.
osa104cChicken or Egg???#1467098/17/06; 13:47:57

@ Sierra Madre (8/17/06; 12:11:33MT - msg#: 146702)


Buy gold at any price."

Gold at ONE US$ an ounce or ONE HUNDRED US$'s an ounce........isn't it all the same price?.............What is any price if the dollars are IMAGINARY???...................iS NOT GOLD THE CENTRAL MONETARY MEDIUM?..............AMF

TownCrierHEADLINE: Can Metals Go Parabolic?#1467108/17/06; 14:08:26

08/16/2006 --
Our different point of view identifying "A New Bull Market in the Making" was rewarded with some quite sensational upside action in the markets, in what appears to be a pattern of mild pullbacks, bereft of any real selling, followed by strong impulse waves to the upside.

And, thus far we have had a similar pattern in Gold and Silver, although we have yet to see the next strong impulse waves unfold and this has created some worry, which is exactly what we want to see: The Precious and Base Metals also climbing a big wall of worry to sharply higher levels and we're now at an important inflexion point, that could define the metals direction going forward into the end of 2006.

Longer term readers may recall, how in the very early days of the liftoff in Gold a year ago, in a groundbreaking piece of research, we were able to identify a remarkable resemblance in the behavior of Gold over the past 6 years or so, with that of the Dow Jones Industrial Average taking off from its double-bottom formation of 1980 and mid-August 1982, in a stunningly similar pattern of percentage gains and behavior...

...Now the tables appear to be turning, wherein some market indices have remained subdued since 2000, while Gold and Silver have been the place to be, just as the Dow was in the 80's and the major casualty thus far has been the very significant decline to date in the US Dollar and its potential for much worse to come still.

Everything was going perfectly according to this plan in the first 5 months of this year, wherein extrapolating forward, we were able to come up with a potential target of $925 to $1,050 for Gold sometime next year and then perhaps following a pullback or yearlong more period of consolidation, we might actually see a run to as high as $1,785 by 2009 with a possible run to as high as $3,790 by 2019, which curiously is about equal to the Dow hitting 10,000 at the turn of the Century. So don't say it can't happen. If a stodgy old Dow can do it, so can Gold.

So, the ducks were almost perfectly lined up, so to speak... Until the markets got too giddy back in May and suffered a short, sharp and to some, a devastating correction, the most interesting part of which is: Being that both the Gold and Silver charts are a microcosm of the old Dow's behavior back in the early to mid-1980's: Was May through June, Gold and Silver's version of the crash of ' 87...? .... Remember the intense level of bearishness following the '87 Market Meltdown, there wasn't a bull in the World and as for anyone predicting the Dow was headed for 10,000, would have been locked up for his own protection...

What is intriguing thus far is the juxtaposition of Gold and Silver at this time. We've maintained all along that the power of the trend is the one thing that has kept us bullish on Gold and Silver. The trend was so strong, it overshot and self-corrected. But now that correction may be long over, or its end may be near, because even if more consolidation is likely, the sheer size and dimension of the unfolding ranges is likely to portend Gold and Silver prices substantially higher in due time and lest we forget, we broke out of a 25 year base which has been building up an enormous amount of energy and portends Gold and Silver prices extremely sharply higher in the years ahead and right now we're right at this inflexion point, where one could argue the case that like the Crash of 87' lows rising to new all time highs faster than just about anyone thought possible, so too could the same fate await Silver, Gold, Platinum and Copper.

What is most intriguing about the Gold and Silver moves of the past 6 years or so, are those same telltale macro, mini, minor, major and even mega wave activity, that tells us there really is a monster bull market brewing out there of epic proportions... in the earliest days of a megabull market in Gold, Silver, Precious and Industrial metals, this early in the game, metals like Copper have already moved beyond imagination and before this decade is out, we believe the emulation of the Tech explosion of 1999 ~ 2000, will be in Gold ...

Just as the seismic activity can predict an earthquake ahead of time, the footprints laid by the metals tell us there's a very big one coming.

^---(from url)---^

"If a stodgy old Dow can do it, so can Gold."



HenriHow much is a US nickel worth?#1467118/17/06; 14:17:08

Nickel made from planchets of 75 % copper and 25 % nickel. At todays prices, what is the value of a nickel?

Cash buyer LME Price /tonne Aug, 16, 2006
Copper $7560
Nickel $33,300

1 tonne = 1000 Kg = 1,000,000 gm

Mass of US Jefferson nickel = 5 gm since 1938

0.75 x 5 gm = 3.75 gm copper
and 0.25 x 5 gm = 1.25 gm nickel
3.75 x $7560/1.0 E+06 = $0.028 or 2.8 cents
1.25 x $33,300/1.0 E+06 = $0.0416 or 4.16 cents
Total 7 cents
For comparison
Susan B. Anthony Dollar 12.5% Nickel balance Copper
8.1 gm
0.875 x 8.1 gm = 7.087 gm copper
and 0.125 x 8.1 gm = 1.0125 gm nickel
7.087 x $7560/1.0 E+06 = $0.0536 or 5.4 cents
1.0125 x $33,300/1.0 E+06 = $0.0337 or 3.37 cents
Total 8.73 cents

I'm on my way to the bank to get some rolls. Do you think they are available?

Sierra MadreGOLD AT ANY PRICE : osa104c#1467128/17/06; 14:17:17

Well, osa, coupla things about IMAGINARY MONEY. It still takes work (for some people, not for others) to get ahold of IMAGINARY MONEY. (Remember those two execs of GS back in the 90's, who bet $1,000,000 on whether the market would be up or down on the day? Can't be costing too much work to get money, if you can burn it that way.)

So, most of us still have to have it, before thinking of buying gold with it.

And a difference between one dollar and a hundred dollars an ounce, is a BIG difference.

When I say at any price, you are to understand that quibbling about whether to buy today or tomorrow, whether $630 is a good price or $614 today, or $595 tomorrow, that does not make any difference. If you have the wherewithal, any current price is a good price.

You bought at $728? NOT TO WORRY! We shall soon leave that behind, and you will forget what you paid. But you will always be glad you bought. Forget fluctuations. They are meaningless sooner or later.

That's what I mean when I say,

Buy gold at any price.


HenriOnly looking for Jefferson#1467138/17/06; 14:18:26

Not wanting SBA $ at this time.
spikedogRe: MK and the forum#1467148/17/06; 14:43:54

MK, many blessings to you and your staff for your commitment to this forum and your collective patience with said forum.

I must confess that I am at fault for being one of those who post rarely. Admittedly, in the beginning, it was because the quality of the threads was outstanding. What can a mere mortal offer to the gods? Awe has a side-effect of keeping one humble and quiet. However, as of late, posting seems almost irrelevant. Please let me explain.

Many articulate people post here and have great things to bring to the gold discussion. Yes, a few have moved on and some newer ones have picked up the standard. I have earned at least an Associates degree in economics from the wizened lords and ladies here. Thank you to those who were able to help cure me of my ignorance.

On the other hand, some here post politically under the guise of "all things affect gold". While that may be true, to purely post a political slant and then not attempt to explain its effect on gold is just Another re-hashing of all the garbage on talk radio (we're right – they're wrong, blah, blah, blah). I am not suggesting that politics does not affect the price and movement of gold; it most certainly does. Gold is a very political metal – as pointed out by many illustrious posters here. If we're going to discuss politics, it should be discussing its’ effect on gold – such as the lack of response by the gold futures price in the wake of the planned attack on UK to US planes. For example: a terrorist plot to blow up planes is political, but the resulting action in the gold price is what is relevant to this forum. I believe this was (and still can be) the genius of this forum. Another/FOA seemed to have a magic touch when it came to this, though sometimes even they had some "slip showing".

There are far too many brilliant people here to descend into the pig-sty of political mud slinging and flag waving. If you want that, watch CNN or Fox. And if it be that there is no "news" per se regarding gold on a given day, then a quiet day can be observed too.

Thank you, Sir Michael, for your invitation to speak up at the table round.


Shanti@MK Discussion about the Discussion Group#1467158/17/06; 14:58:19

For many years I visit daily this castle always with great pleasure, as a shrimp I have learned on this precious table that there are so much more angles on the POG in the postings as wel in the the archieves.

In one way or another, most posts are related directly or indirectly to the POG, sometimes the levels of understandings are realy deep to make the interconection to it. Ofcourse the individual examination of the value of the posts is depending on ones subjective interpretation.

We are kneaded by all kind of media to think what they want us to think (trying to push and keep us, inside the ($) box). A closer look at fundamental (real) economics today, seems we are moving fast and far outside this fantasy box. To get a clear view it takes one to think outside the box as well to see what's realy happening today. On this forum post are so informative that they are one helping to think far outside the bounderies of this fantasy box. Finaly to convince one of at least to have a GOLDEN insurance.

Therefore I would thank you and your team for providing this precious table and all posters for their contributions, please keep up the good work and the freedom of speeche………

Just to say that if postings of FOA/A are studied, the (political loaded) postings falls more in place like small puzzle pieces.

Sal-OM all !!

Henri$ value of US nickel and its relevance to gold price#1467168/17/06; 16:02:10

Well, for this I shall just trot out the old "bad money drives good money out of circulation" nugget. How long before the Jefferson Nickels will be replaced with a new design that is not a money loser from the get-go. Perhaps the newly issued nickels of the half-face variety will be a short -lived production run and soon carry a numismatic premium. They have the same apparent weight and dimension of the older nickels so I am presuming they have the same composition. The US Mint website does not give a specification for this issue unless it is in the category of the "Jefferson series".

Money/coinage in circulation appears to need an intrinsic value (the market value of its component metals) much lower than its "coined" (tender?) value for it to continue to remain in circulation as money.

The new Buffalo gold piece has a $50 denomination stamped on it as if it were an afterthought (or perhaps there was an original aim not to place a $ value on it). This obviously means it is not intended to circulate as common money.

The Mexican "Libertad" Silver pieces do not have a "peso value stamped on them. They are liberated coins. Loosely translated, they say 1 ounce of pure silver .999...that is all. The writings of Hugo Salinas-Price may be familiar to some here on the forum with regard to having a freely circulating silver coin for the populous to protect themselves from the profligate monetary policy of the Mexican state (and the international cartel of bankers who manage parenthetical, not attributable to Mr. Salinas-Price).

The extreme and developing shortage of Nickel is behind the advance of the intrinsic value of the US nickel beyond its "tender value".

We now have no actual "gold or silver money" in circulation. Gold coin trades as a "collectable" under the newly reformed US Tax code. this subjects transactions to a 26% profit sharing partnership to the IRS.

Was it a shortage of metal that drove the intrinsic value of gold and silver above its tender value that drove it out of circulation as money? Was it an increase in trust of the US treasury and its new partner the Federal reserve? Or was it, a refusal of congress to exercise at the behest of banking interests to be bound by the discipline of a gold standard?

The US Nickel is just another in a long line of metals that is too valuable to be used by ordinary folk for what passes these days as money. My prediction is that there will be no metallic "money coinage" in the future. Perhaps wampum (colored beads) will suffice.

USAGOLD Daily Market ReportPage Update!#1467178/17/06; 16:03:24">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

Gold down as oil slips again

August 17 (from DowJones) -- The continuing tumble in crude-oil prices took a toll on New York precious metals Thursday, with long liquidation occurring and the loss accelerating in gold when sell stops were hit, traders and analysts said. December gold settled down $13.70 to $625.30 on the New York Mercantile Exchange.

Gold had risen on Wednesday when the market chose to pay more attention to a softer U.S. dollar - which tends to support the metal - rather than a decline in crude oil, which tends to be bearish.

For much of Thursday, the euro traded modestly higher, but crude was on the defensive. And this time, several market watchers said, the metal took its cue from the energy complex, as September crude fell to as low as $70 a barrel, its weakest level since June 21.

The euro then gave up its gains late in the day, adding to gold's woes.

"This is mainly an energy situation," said Scott Meyers, senior trading analyst with Pioneer Futures.

"The energies got clobbered for another day. If you look at the charts, they're very similar. The energy sell-off is starting to spill over to the metals."

This was also cited as the main influence by Mike Zarembski, analyst with XPRESSTRADE, who cited spec selling in particular.

"The sell-off in energy is affecting precious metals despite the weakness in the dollar," he commented.

A couple of dealers also cited thin liquidity during the summer vacation season as a factor contributing to the metals' weakness.

"It's mid-August," said one. "Liquidity dried up some months ago and it's even worse now."

---(see url for full news, 24-hr newswire)---

TownCrierHEADLINE: U.S. Ready to Make Run for World Gold#1467188/17/06; 16:11:29

^---(from url)---^

Whe I saw this headline among the lists I thought this was going to be a retrospective on Nixon in '71.

Oh, well...


YGMRandy......#1467198/17/06; 16:36:25

the power brokers who make the rules have been having a personal secret/silent run at "CHEAP" Gold for years. Not so different than Martin Armstrong dissing Gold endlessly and shorting to eternity for other people's accounts and all the while holding a few Mill $$ worth (solid Gold bust and mega coins etc) in his penthouse. Anybody who can't believe Greenspan doesn't have mega Gold holdings along with every other scurrilous central banker has their head in the sand. Ever wonder what Gold assets tricky Dick had before he killed the Gold standard?
Clink!@ Henri#1467208/17/06; 17:42:02

This link might save you a bit of calculation.

Ten BearsTHE NEW PARADIGM#1467218/17/06; 18:03:55

by Douglas V. Gnazzo

Another paradigm shift took place, one that changed from paper money being backed by silver and gold, to the belief that it need not be backed by anything but the promise to pay – as if such would be enough to stem the tide of financial and monetary debasement.

The age of paper fiat blossomed during the twentieth century. Granted it had started much earlier, but the advent of the Federal Reserve in 1913 was the defining moment in the annals of paper fiat money. The Fed and an elastic money supply of paper fiat go hand in hand, like death and taxes

a paradigm shift is taking place, people are beginning to realize that paper fiat debt-money is becoming worth less and less, and is on its way to worthlessness.

Make no mistake about it, change is afoot – the times they are a changing. Align yourself accordingly. Be on the side of Honest Money.

Ten Bears:
One view from a "sound money" gold advocate..

GoldiloxGold and the US Dollar#1467228/17/06; 18:12:24


It is all in the US dollar, however thanks to the COMEX gold-men the vacillation in the price of gold is multiplied by orders of magnitude as compared to the vacillation of the dollar.

The Exchange Stabilization Fund works at the behest of the Secretary of the Treasury and/or President.

Let's assume the primary person operating this fund is the financial man. Then assume the US dollar cannot bomb out when the boss is on TV saving pensioners from living in cardboard boxes.

Who would do the dollar buying?

The answer to this question is some major international investment bank. If you are part of that trading team the tempting transaction is to hammer gold as you buy the dollar, is it not?

The future of gold lies more in the various necklines of the many bearish head and shoulder formations of the US dollar than any other item.

Just look at this relationship today.

My view is gold is going to $1650 and the US dollar has two potential price objectives: .7200 and .5200.

All the rest is noise and drama.


As a fairly open political poster, I must admit I've also felt things drift further off-topic than even I am comfortable with. It's not about censorship, but rather propriety. Sinclair makes a good point about the relationship of dollar politics and international gold price in the quote above, and that's what makes a good guideline for discussion.

The "fervor" of someone's political stance says NOTHNG about the appropriateness of the topic. If the poster has to work to make it fit, it is probably borderline or downright inappropriate. We have enough that we disagree on WITHIN the guidelines for many hours of discourse, when we so choose.

When posters get either too personal or too political, no matter who they are, it's best to step back and let the smoke clear, as neither "preaching to the choir" nor "voices in the widerness" are particularly interesting to most of us.

BoilermakerPolitical Postings#1467238/17/06; 18:25:17

My postings are inversely proportional to the amount of political garbage that surfaces almost daily as of late on this forum. I understand, as I'm sure most others here do, that politics and gold are intertwined. However there's a clear problem for me when a post is 90% politically oriented and only tangentially connected to gold with some inane reference to it.

For instance, if I say or suggest that President Bush and his administration did 9/11 should we all buy gold? I could also say that the price and quantity of oil is controlled by administration-backed corporations and we are quietly being led to the slaughter by same. This is crap. Even if it were true (GWB ordered 9/11) I would be more concerned if terrorists did the deed and will strive for a bigger hit. To me, GWB is a misguided/moderately stupid/dishonest politician, not a terrorist.

That the US Government's policies, Middle East and oil are connected to gold is undisputible. What cranks me is the emphasis of some posters to create goblins. It has been spelled out by many that the fight for free gold is a 100 year's war. Day-to-day politics are noise in the process. Don't get distracted. The real enemy is the ignorance of the masses regarding the complicity of the banking and political fraternity to perpetuate the fiat $. Our forum focus should be as GATA has identified, the FED, the USTreasury and the Bankers. These are the puppet masters.

Ten BearsMore Douglas V. Gnazzo#1467248/17/06; 19:13:05

Mortgages and debt money, as opposed to sound money… (For any who may not be familiar with the philosophy of this particular brand of gold advocates.)

On June 5, 1933, Congress passed the House Joint Resolution 192 to suspend the gold standard and the redeemability in gold of paper money. Since that time, it has been impossible to lawfully pay off a debt.

Lastly, by instituting a paper fiat debt-money system, whereby credit and debt and money are one and the same - it is issuing debt obligations that are backed by the credit extended by the acceptance of all mortgages on our homes, and other private property.

The Invisible HandRussia Enters the Golden Troika#1467258/17/06; 19:42:16

The continuing decline of the dollar is forcing many Russian traders to sell the American currency. As a result, Russia's gold currency reserves rose to a new high of $266.9 billion, placing it third in the world, behind CHINA and JAPAN. However, this position is likely to be short-lived, since repaying Russia's debt to the Paris Club of creditor nations will drain $22 billion from the reserve

Ten BearsSCYLLA & CHARYBDIS #1467268/17/06; 20:32:14

by Douglas V. Gnazzo


What is actually occurring within the markets is a form of wealth transference, from the producing sector to the financial sector, taking the capital of the former, and giving it to the latter, creating almost risk-free capital gains in the process.

Deflation and hyperinflation are different in form, but they are identical in substance – two opposite sides of the razor sharp edge of debt. On either side lies the abyss. Deflation destroys the value of debt through defaults and bankruptcies, hyperinflation by debasement and loss of purchasing power.

Hyperinflation destroys the currency; deflation prolongs the

Mr. GoldfingerThe markets will remain bizarre in the next little while.#1467278/17/06; 20:43:22

Monks brawl at peace protest.
How can you get more bizarre then that? I like the news to show which way a market will go. Brawling monks tells me our collective ship is listing badly but the forces of good and evil are now doing battle. This struggle will tend to pull the markets in a titanic battle. The forces of good, reality and compansion will be fighting the forces of evil, assumption and destruction.
Which side will win will be very much determined by our collective stand on the issues that shape the markets and the price of gold.

GoldiloxLost in the Noise - Volatility#1467288/17/06; 20:53:46

It was not that long ago that $20 swings in PoG were pretty big news. One can argue that the current higher "value" means they represent a smaller percentage move, but they seem "normal" as of late, where they previously represented a major price advance or reversal. Is this altered perception merely a product of global price inflation, vis a vis dollar devaluation?

Do we now reserve the term "major" for $30 or $50 moves?

A number of gold pundits have predicted $100 swings in the near future. How near, do forum members think?

I'm interested in individual thoughts on increasing volatility, for those who might wish to comment.

The Invisible HandVolatility#1467308/17/06; 22:08:32

The late Harry Browne's definition of volatility is:
The tendency of an INVESTMENT's price to fluctuate.
The opposite of STABILITY

Next Gold.
Harry Browne, "The Economic Time Bomb", 1989, pp.152-153:

{Gold's] principal function is as a store of value – a role in which it competes with the US dollar.
Demand for gold as a store of value dominates the price. Thus gold's response to inflation is much more powerful and reliable than that of commodities whose prices are determined by levels of production and consumption.
Gold also has the virtue of being self-sufficient.
Gold may also profit from political or military crises that feed anxiety and increase the demand for a store of value.


I like it: If gold is now volatile, it proves that it is NOT a stable investment.

This lunatic's posts of earlier today prove, to everyone's disgust, that the present politico-economic situation is such that
-people are looking for a store of value
-there is inflation and gold should thus be responding
-all existing paper currencies are faced with inflation
-Madam Livni is arrogating herself (c.q. the Israeli Defense Forces) the (offensive) right to continue "cleaning" South-Lebanon from Hezbollah. that she's not even hiding her words; that Madame Alliot and the BBC confirm that the UN will never come.; and that other lunatics than this one, are arguing that gold would unwind the terror premium.

This Livni-Alliot thing was quoted in
The Invisible Hand (8/17/06; 03:40:34MT - msg#: 146682)
The equation

But this is filth says msg#: 146691.

Does this forum promote gold as a STABLE investment?

No volatility please. This endangers the status-quo.

The Invisible HandThe Invisible Hand's so-called hidden agenda#1467318/17/06; 22:46:39

The dictionary definition of hidden agenda is:
An undisclosed plan, especially one with an ulterior motive.

Yes, the Invisible Hand, LL.M. in European Legal Studies, Exon., is no longer interested in JUSTICE.

He's only interested in TRUTH.

That's why he stopped practicing refugee law and started studying philosophy.

As Alejandro Llano, from the University of Navarra (Spain), says:
The only commitment of philosophy is the commitment to TRUTH
which amounts to a commitment to REALITY
because truth is the agreement of man's intellect with the reality of things
(Llano, "Gnoseology", Manila: Sinag-Tala Publishers, 2001,p. 12)

In his book "De Veritate" (On the Truth), St Thomas asks "Quod sit veritas? (What is truth?)
And he replies:
Veritas est adequatio rei et intellectus.(truth is the agreement of man's intellect with the reality of things)

The two positive characteristics of this definition are expresses the nature of truth formally extends to all the various meanings of the word truth

For those who offended by this catholic author,

here's Alicja ROSENBAUM, aka Ayn Rand, in her book "Introduction to Objectivist Epistemology", Meridian Books, 1990, Expanded Second Edition" p. 48;

Truth is the product of the recognition (i.e., identification) of the facts of REALITY.


melda laure"I sometimes think the whole purpose of the Fed is to prove Dr. Richebacher wrong"#1467328/17/06; 23:11:37

Well take me for a lout and whack me with the hammer, guilty as charged. ;-( I'm not good at apologies, Master Kosares, nor at economics either. One last comment before I go stand in the corner: the housing bubble popping is not necessarily the end of the dollar, dow, naz, nor the trigger for a gold moonshot.

This has been an annoying week. Starting tuesday I saw new articles on Puplava's site all bemoaning that "all the markets are being manipulated." It is probably a consensus that once the housing bubble pops the rest of the economy is "doomed" in short order.

Somehow, (given the stakes) I think it is premature. There is One Last Card to be played: Truly MASSIVE government spending on the order of 20 to 40 trillions over 5 to 10 years to build a "homeland security infrastructure" before the dollar can fizzle.

I'll spare you all my analysis. Gold just might continue its controlled rise for several more years... Or not.

The stakes are high.

GOLD FINGERI can't swing....but I can dance!#1467338/17/06; 23:26:01

Today, now more than ever the world is shaking at any signs of terror movements and war. I don't care who is President or A current Prime Minister (now or in 3 years) we are in for some shaking times.

There will be brief moments of calm, some peace mixed with a tad of tranquility, but this will be short lived.

Look at the world.

We have huge populations with huge over consumptions. We also have other conditions on Earth to be concerned about such as natural disasters and calamities. I am not one to be doom and gloom, however, I think many of you would agree that the world is becoming a more VOLATILE place.

Tsunamis, earth quakes, hurricanes, Volcanic activity and more. I personally have seem more and more of this kind of stuff and that is one reason I have made the switch to PURE GOLD! It maybe volatile and the swings could be dramatic, but it will be a better dance than other saving or investment tools. It will also be close to me where I can see it and trust that it is MINE!

P.S. What if another disaster hit the US or LA area? They say that Los Angles is next in line for one of the biggest earth quakes in history. Now, this is not's not a war...but a scientific fact! Just Google it and read up. How with this effect the POG? AND I didn't even mention O I L~


REF:Goldilox (8/17/06; 20:53:46MT - msg#: 146728)
REF:The Invisible Hand (8/17/06; 22:08:32MT - msg#: 146730)

GoldiloxStability?#1467348/17/06; 23:36:19

After watching the ME "crises" for the last 50+ years, I have serious doubts that the current media blitz about "ME cease-fire" amounts to much more than an effort to temporarily ratchet tensions down a notch.

Buying opportunity - more than likely.

Pent up demand ahead? Maybe.

It's hard for me to believe that the current flavor of ME crisis has much to do with the "trend", even if day-traders supposedly find inspiration in the "news".

TownCrierQuote of the day:#1467358/17/06; 23:57:28

"The real enemy is the ignorance of the masses..." --Boilermaker


Therefore, may we all strive to let every post be a step toward remediation on that condition.


melda laureGold is not a good substitute for a can of beans (nor vice versa)#1467368/18/06; 00:22:53

I dont worry about the things you mention Sir GF, they happen somewhere in the world regularly. Those who are prepared manage somehow and the world rolls on. Being prepared helps of course, and gold may even save one's bacon in a pinch but having a can of pork and beans is probably better in a pinch.

The greatest value for gold will happen in a future time of relative high productivity when bullets are not flying in the vicinity and when people are free to produce wealth.

I didnt buy gold because of Israel, or Mr Nasrallah nor Saddam, nor any one president. I bought gold because of Congress and the Fed and the funny money game that has finally spoiled.

"It has been spelled out by many that the fight for free gold is a 100 year's war. Day-to-day politics are noise in the process. Don't get distracted."

Classic sir! A game started by giants, and the giants will probably be there at the end. But I do not wish to be squashed with the dollar crowd in the meantime.

TownCrierKorea Switches Inflation Focus To Headline CPI#1467378/18/06; 01:14:04

SEOUL (Dow Jones)--The Bank of Korea said Thursday it has set an inflation target of 3.0% for 2007-2009, in line with its previous target range, but it will focus on the headline consumer price index rather than the core index.

The Bank of Korea decided to stop using the core inflation index as its main gauge as it often fails to reflect the real economy, the central bank said in a statement...

Core inflation, which excludes more volatile agricultural and oil-related costs, stood at 2.2% on year in July, while headline CPI was up 2.3% last month from a year ago.

The rise in headline CPI could accelerate quickly in coming months as geopolitical tensions show little sign of easing, threatening to push already high global oil prices still higher.

The central bank acknowledged that there is a possibility inflation could move out of the range if the prices of international oil and fresh food are volatile.

^---(from url)---^



TownCrierPension woes...#1467388/18/06; 01:32:10

HEADLINE: Bush signs pension bill into law

Pacific Business News (Honolulu) -- President Bush has signed the Pension Protection Act of 2006, which sets rules for 30,000 underfunded pension plans to catch up.

Congress began moving to shore up pension plans after United Airlines and US Airways gutted theirs during bankruptcies. Both carriers emerged with new pension plans with lower benefits than recipients were promised.

"Americans who spend a lifetime working hard should be confident their pensions will be there," said the president in a signing ceremony at the Executive Office Building. "Some businesses are not putting away the cash they need to fund the pensions they promised to their workers."

Until now, federal law required 90 percent funding. Many companies have not been able to keep up even with that. ... The new law requires 100 percent funding in seven years but gives 10 more years to companies that freeze benefits.

When companies abrogate their pension commitments, the pension guarantor of last resort is the taxpayer-funded Pension Benefit Guaranty Corp., but it's now $23 billion in debt itself, and in the United Airlines and US Airways bankruptcies it exercised its prerogative to finance lower benefits than employees had bargained for.

^---(from url)---^

What will be awaiting for you in your retirement years?

Try as they might, if a company goes bankrupt or falls on hard times, all the laws in the world won't do any good.

Don't leave yourself vulnerable to a roll of the dice. Take control of your own destiny and put your emphasis on building real, tangible wealth as the key component of a personal savings plan. And when it comes to reliability, safety, liquidity and convenience, that's where gold fills the bill. Universally recognized and respected since the dawn of civilized (and not-so-civilized) society.


SundeckEurope's central banks may miss gold sales target#1467398/18/06; 05:04:26


LONDON (Reuters) - Europe's central banks are expected to sell only about three-quarters of the full quota of 500 tonnes of gold in the second year of an agreement that regulates bullion sales, analysts said.


Sundeck: What do you suppose would be the discussion in the boardrooms of the participating central banks? And would it be reported even if they did or did not sell the full quota?


spikedogre: TC - Pension Woes#1467408/18/06; 06:29:58

It seems that this big pension bill is more than meets the eye. Looks like it is Another means of propping up a tottering Stock Market. Check it out.


At the same time, the law recognizes the evolution in workers' benefits — a gradual disappearance of pensions in favor of savings accounts such as 401(k)s that require workers to amass their own retirement savings.

Those accounts, also known as defined contribution plans, got a boost in the new law. It is this step that many expect will do the most over time to help people working toward retirement.

The law lets employers automatically enroll workers in 401(k) plans. In addition, there is a mechanism to increase gradually the amount saved, and employers are encouraged to match some of the dollars that workers stash away.

A nonprofit research organization, the Retirement Security Project, estimated that the change, when fully in effect, could mean employees will save an additional $10 billion to $15 billion in 401(k) accounts each year.

"Those additional contributions will bolster retirement security for millions of workers," said Peter Orszag, director of the project, which works to improve retirement benefits for low- and middle-income workers.

end snip

It would appear to be an extra $10 billion to $15 billion for the boys on Wall Street.

spikedogOops - the Pension Bill's effect on GOLD#1467418/18/06; 06:32:52

Would be to keep the music playing a few years longer and keep GOLD under wraps - such as they can for as long as they can.
GoldiloxPension Bill#1467428/18/06; 07:58:39

Wow, some of the descriptions here are almost sounding like this is "voluntary",by suggesting workers can "choose" alternatives. The way I read it, the worker has little or no say about automatic enrollment and little say about the percentage of income claimed by another "mandatory deduction."

Of course, one of the reaons for this this is the original 401k bill required a minimum participation for a company to enroll, leaving a lot of small firms out of the picture if enough people opted out. I worked at a small startup a few years back where a number of people were angry that some execs decided not to participate and exempted the company by missing the participation percentage.

What was originally designed as voluntary savings seems to be morphng into another "withholding tax", as control of the funds falls into the hands of the Wall Street coffers. I wonder which "foxes" will be appointed to guard this "henhouse"?

Surely, they will be Paulsen, et al, associates.

DruidGoldilox (8/18/06; 07:58:39MT - msg#: 146742)#1467438/18/06; 09:05:13

Druid: Goldi, you're right, this is huge in that it creates another perception that the employee is "saving" for his or her future. Nothing could be further from the truth as this is just a different form of a forced tax upon the "unwashed". On top of all the other "hidden" taxes that one is faced with, this is just a different form of reducing your overall net pay under the guise of saving for your future. A different but forced way of chasing a disintegrating carrot. I wonder what sleazy lobbying group paid for this theft.
ArmageddonReasons for Gold Volatility and Strange Behavior#1467448/18/06; 09:40:15

On the day that it was announced that a terror attack had been foiled in Britain regarding blowing up airliners, gold went down instead of up as expected. I was not surprised. I had noticed gold was weak in the weeks before and I also knew about gold manipulation by the Fed, bullion banks, etc to supress the gold price.

The main reasons I think that gold is weak and volatile are:
1. Gold Manipulation on negative geopolitical events in order to surpress the price and lessen the attractiveness of gold as a hedge against disaster.
2. Gold as predicting a major stock market correction
3. Gold Manipulation because of possible world events like a possible Korean nuclear test and possible big terror attacks on American soil. The manipulators want investors and speculators to see gold more of as a commodity rather than "money" or a hedge against disaster and they need to supress the price in order to do this.

Below is an article from Chris Laird giving more information.

Two Theories About Gold's Recent Confusing Behavior

By Chris Laird

August 15, 2006

I have just had a very interesting telephone discussion with Bill Murphy of GATA. The reason for the call was I have noticed that gold has acted strangely and weakly when normally gold bullish news comes out. I use macro economic analysis for my gold market studies. My usual macro conclusions would have indicated much stronger gold bullish reactions to this news. This indicates to me that there are big changes brewing for macro economics, via the signals I see from gold's recent behavior- i.e. its not acting bullish when it is supposed to…

Gold's weird recent activity

I will get into the discussion Murphy and I had in a moment. But first, let's comment on some of the weird gold behavior of recent weeks. First, in the ups and downs of the Lebanon war gold has acted very atypically. The latest example was this Monday, right after the news that the war entered a UN brokered cease fire. Many metals writers have stated that there is about a $30 bullish premium on gold's price because of that war. I and others have expected any significant resolution to Lebanon to drop gold quite a bit. On Monday, gold barely reacted at all… Of course, the present ceasefire in Lebanon might be very tenuous. But Murphy and I have some ideas about gold's recent atypical behavior, which we will get into.

In fact, many gold writers have expressed strong quandaries as to why gold is not over $700 as of last Friday, before the ceasefire. Also, at that time there was bad news out on the oil front, with BP having to shut down the US Alaska pipeline for months for repairs. Also the terror news in Britain Friday barely affected gold at all...

Gold has barely reacted to bullish news, even as oil has gone up last week, the Lebanon war ongoing, and the BP Alaska oil troubles, and the latest Airline terror.

Now the latest oil questions have cooled a little, with BP stating they may be able to keep half of the Alaska oil flowing while repairs are made. Also, clearly, the oil front is slightly cooler because of the Lebanese cease fire. But gold remains barely down as well this Tuesday. Again, this is atypical.

Gold anticipating a US and Japanese stock decline?

One possible reason for gold's atypical behavior may be it is anticipating a big US stock drop, which naturally would draw in Japan and the EU.

Looking a little further, the latest US inflation numbers are improving. The PPI is very low and even down this week. US interest rates are pausing at this time. But Bernanke has virtually zero leeway between further rate increases to fight inflation or incurring a serious US recession. SO, gold would find controlled inflation in the US at least neutral to bearish if Bernanke can pull off a controlled cooling (soft landing) of the US economy and get control of inflation here.

Japan and the EU region are both experiencing stronger inflation. The EU particularly is probably going to raise again soon. The usual US interest rate advantage vs them of from 1.5% to 3% might soften some, and this would be USD bearish somewhat. That would be gold bullish if interest rates only are considered, and the US does not raise any more. But there are other overriding factors, which will bring me to the main topic of the public article.

Markets about to liquidate?

If US financial markets (stocks particularly) were to liquidate anything like many foreign markets this year (50% drops in Middle East, large drops in Japan, and many others) we could look at the US stock market dropping 20% at least.

I have written for several weeks about the fact that financial markets are showing very flat behavior, and there are lots of reasons to say the world economy is on the brink of a big slowdown. If the US housing bubble were to burst severely, obviously since half of all new US employment of the last 4 years was housing related, and since home cash outs in the US have been running at about $800 billion a year recently, the US economy would stop or even crash rapidly.

Frankly, if you agree with the sentiment that stock markets anticipate economic slowdowns, and that the US housing bubble is already well underway in a decline, then we can say:

* The Housing bubble is going to drive the US into a definite recession that will be finally reflected in public statistics no later than Jan 2007. If that is so, then the US stock market is already due to anticipate this immediately. A big stock drop in the US is due right now, and from now going forward.

* This leads naturally to the question : "what would hedge funds do?" I think the answer to that is that they will front run US stocks down. Therefore, with an imminent drop in the US stock market due now to general technical topping, it is then doubly imminent that hedge funds are on the brink of front running stock drops in the US.

Of course, they are probably very wary of what Plunge Protection Teams in the US and Japan would do to prevent this. So, I am sure they are not totally free to just jump in shorting US stocks, even though such an event is called for now….I guess the only thing we can say for sure is… ‘well see’ because there has not been super big PPT teams all ready to go until only recent years. Nevertheless, big stock drops are due.

Here is a good news article about the bad technical situation for the US stock market at this time:

By Ambrose Evans-Pritchard

(Filed: 14/08/2006)

A clutch of Wall Street's top technical analysts have turned starkly bearish on the US equity markets, predicting a fall of up to 20pc in main indices over coming months.

The chartists are issuing ominous warnings about the Dow Jones industrials and the broader S&P 500 index, despite their relative resilience through the May-June global rout and through the monetary tightening of the US Federal Reserve.

Louise Yamada Technical Research Advisers warned that the market was exhibiting all the signs of a slow-motion breakdown. "This is not a healthy rally," said managing director Ronald Daino. "We're seeing 'black holes' where stocks are hammered on slightly disappointing earnings.

The last time we saw anything comparable was in late 1999 and early 2000 before the bubble burst."

What would gold say about possible stock drops?

Big stock drops are very deflationary. A lot of money is lost in these things and people and companies really pull back spending. That can be a very downward force on gold ultimately, unless there is a currency crisis at the same time. Also, a big US stock drop (probably to include Japan) would be a currency boost to the US and the Yen as people flee to cash domestically. So if the USD and other currencies strengthen, then gold would find this somewhat suppressive. That could be the initial reaction.

Here is a key point: The fact that gold has not reacted very bullishly to normally bullish macro economic and political developments in the last 6 weeks indicates to me that gold is anticipating a major economic pullback, stock declines in the US, Japan and the EU, and a strengthening of the USD. All these are deflationary.

I think this is a key answer for why gold has shown weakness from a macro economic perspective. The fact is the US is definitely poised for a big economic slowdown.

My discussion with Bill Murphy

There is another take on this gold situation. That is that gold manipulators have a very heavy hand in the gold markets right now. I.E. that they are forcing gold to act in an atypical way to normally gold bullish economic news. In effect, the idea is the gold manipulators are telling speculators not to ‘play’ in the gold sand box or they will get sand kicked in their faces.

Now I know that there is debate about how much influence a gold manipulating cartel can have. I personally believe in gold manipulation, but have had the view that it can be done within the context of general market moves only. Gold cannot be totally suppressed without an unlimited supply of bullion to sell. (not just futures)

Murphy and I came to a conclusion that it is possible that there is super heavy handed gold manipulation at this particular juncture because there is becoming less and less bullion to dump to suppress the price. Therefore- a panic that the gold price could just be about to get out of hand. If they don't act very heavy handed now, it will get beyond their control. Hence gold is heavily manipulated down on bullish news. This would fit with the rather steady gold price this week in the context of easing oil prices, an easing Mid East war situation, and an easing Alaska oil situation. Gold should have dropped even $20 at least as of Tuesday, but what might have happened is short covering by the gold manipulators! Hence, gold does not drop even on gold bearish news as the shorts cover and build ammunition for the next round. Gold is only down to 624 now -down only about 6 bucks from Friday. The gold manipulation scenario does fit this situation.

This idea also fits well as an explanation of why gold has reacted so atypically in the last 6 weeks. First, gold has barely reacted bullishly when normal developments like Middle East war and oil troubles have arisen. One possible explanation is that gold bullion is dumped on the news, and gold held down. In other words, even though the gold manipulators may have less actual physical bullion to sell, they are determined to keep gold down to present the idea that US inflation is really not as much as an issue as it might be. In other words, an act of desperation to shore the USD. I surmise that holders of gold can be found who will go ahead and sell the bullion with sweet quid pro quo deals, made possibly initially in dollars, but within the day some prime real asset is exchanged at the end of the day for a fantastic price.

It is possible that a lot of bullion can be liberated in such a manner. (secret super lucrative back deals of gold bullion for prices far higher than on the real market, but done in quid pro quo deals that essentially are USD invisible- basically a barter) the gold is then sold on the USD gold physical market. The problem with this method is that there are only going to be so many quid pro quo deals make able. Eventually, even that source will dry up.

Much of this atypical gold activity is since Paulson became US Treasury secretary. Thinking along the lines of Murphy, Paulson, being from Goldman Sachs, may be well able to really manipulate gold at the margins. In other words, if he is inclined to manipulate gold's price his present office sure adds some horsepower! He is US treasury secretary, and can have free run with the PPT, which incidentally states that it will intervene in any financial market at will, and that includes gold particularly. I can easily see a situation where someone with the omnipresent power of the US PPT can make USD invisible gold trades and find gold to sell physically on the market – to a point.

As a matter of fact, the PPT is not even trying to hide its activities, rather, they make no comment on excellent public articles like that by Sprott (or Texas Hedge I don't remember exactly) a year ago of the huge scope of their actions. According to Murphy, the PPT is not even trying to be hidden any more, rather, we both agree that there appears to be a ‘message’ to speculators that they will not be allowed to ‘play’ in certain markets. Like gold……hence the atypical gold market behavior and news articles such as this one:

By Ciara Linnane

Last Update: 9:20 AM ET Aug 10, 2006

NEW YORK (MarketWatch) -- Gold futures fell early Thursday as traders scrambled to assess the news of a thwarted plot to blow up airlines en route from the U.K. to the U.S. that sent oil and stock futures lower. "We are puzzled as traders this morning with gold lower as it should be up big," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch. "The news is coming in so fast and furious that traders are almost in shock and are getting thir bearings and deciding what to do next." Kerr said he expects gold to rally once the gravity of the situation has set in. "We see $700 gold as a major possibility should these events escalate." End of Story

If I was to make a summary of this view, it is that there is now a war of nerves between the US and Japanese PPTs and the stock markets overall that want to drop, and are due to drop merely from technical reasons. Probably the speculators (hedge funds) are the most trigger happy. The gold market is market ‘zero’ because the value of the USD is quite a critical issue to the US and its trade partners.

So, then we have two views that I presented for gold's recent atypical reactions to bearish and even bullish forces. One, a macroeconomic view that gold is anticipating large stock market drops in the US, Japan, and the EU, where normally bullish gold news is basically ignored, and gold seems to bias downward.

The other, is a view that the USD and gold manipulators are getting very uptight, are using every resource in their quiver to induce atypical gold reactions to market news to discourage any long term bull speculators. The biggest possible resource of the manipulator camp could be Paulson, a former Goldman Sachs banker, who now heads the US treasury no less.

The PrudentSquirrel newsletter is my gold and economic commentary. It is macro economic study of gold and precious metals. My subscribers repeatedly tell me they appreciate that focus, and have subscribed for that reason. Stop by and have a look.

Christopher Laird

GoldiloxIsrael alarm at UN force members#1467458/18/06; 09:54:08


Israel says it would be "difficult if not inconceivable" to accept nations which do not recognise its right to exist as part of a UN force in Lebanon.
Israeli UN envoy Dan Gillerman was speaking after Indonesia and Malaysia, which do not recognise Israel, pledged troops for the UN deployment.

Malaysia said Israel should have no say in the make-up of the force.

The UN has expressed cautious optimism that it can deploy an initial 3,500-strong force within two weeks.

UN deputy chief Mark Malloch Brown warned earlier that delay could threaten the ceasefire.


More "flies" in the ceasefire "ointment". While every effort at diplomatic resolultion is being expended, there are lots of "triggers" still smoking - pun intended.

While PMs might have been successfully suppressed during the initial battles and terroism scares, one might wonder if renewed hostilities would find them as "well contained."

The appearance of control is probably more financially useful than actual control, but renewed hostilities would reflect neither.

spikedogPension Bill - Goldilox / Druid#1467468/18/06; 09:59:49

Forced withholding in a medium that is losing its value as we speak. Now the PM ETFs are really going to look like great investments for those that are locked into their 401(k)s. Which, of course, will help keep a lid on the price of gold.... in the paper markets.

Question to the studio audience.... does the US population need to wake up before gold does its lunar liftoff or will the rest of the world be sufficient? In either scenario, how long is the countdown clock? 1-2 years, 3-5?, more?

I just can't see how this can be managed forever. Perhaps, the Repubs will dump and run after this election. Theoretically, then they won't care.

ArmageddonGold up or down on Aug 22?#1467478/18/06; 09:59:58

On August 22 which is next week Iran is supposed to give its answer to the U.N. regarding its nuclear program. Furthermore, ABC news has reported that North Korea may be planning for a nuclear test soon. Will North Korea test a nuke on Aug 22?

If they do then I believe gold will go down regardless of the bullish geopolitical news that would be for gold in terms of a "hedge against disaster" and "gold as real money" way of thinking. The manipulators will beat the price into submission. However, eventually the cartel will run out of tools, its a matter of when.

I would be interested in informed people like Chris Powell of Gata in any up to date info on the amount of ammo the gold cartel has in supressing the gold price.

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amperegold investment demand up 19% #1467498/18/06; 10:28:16

Strong demand from investors across almost all categories drove investment in gold to high levels in the first half of 2006...

GoldiloxPrice Suppression#1467508/18/06; 10:34:22

@ spikedog,

I'm in the camp (with some others here) that believes that the Repub/Demo slant in the seats of visible power bear no serious effect on fundamentals controlled by the less visible power bases.

After all, it was Democrat FDR that first confiscated citizen gold, though the Reppublican excesses under Wilson fueled it.

Those who have read "Creature from Jekyll Island," are also aware that the original FED bill failed under Republican sponsorship, and was reintroduced with nary a word changed to pass under Democratic leadership in 1913. Well, I am shocked!

The name placards are changed, but the "wizards behind the curtain" remain the same. Diebold voting machines are but "misdirection, my friend," to quote the movie "Swordfish".

It's likely that the media shills will promote "regime change" as a cause of the already sagging markets, instead of the effect thereof. They love to analyze differences in market performance based on the current team of clowns in the Washington circus, most of which is typical analyst horse hooey.

Those who have done their "due diligence" are aware that this is merely a sideshow, at best.

Keep your eye on the bigger picture!

TownCrier* * * * What does the US rate freeze mean for gold?#1467518/18/06; 10:37:32

(MoneyWeek) 18.08.2006 -- While the Fed was raising interest rates, one could reasonably argue that its aim was to fight inflation, which continues to climb.

{But] even by the governments own calculation, which I believe understates the true rate of inflation, it is clear that inflation is a growing problem.

The Fed's Changing Priorities

So now that the Fed has stopped – at least for now – raising rates, it seems clear that they are focusing on something other than inflation. The object of their redirected attention is clear. The Fed has become focused on the economy.

With the slump in housing becoming obvious, ... the economy is slumping. So the Fed has changed its priorities. Instead of fighting inflation, the Fed instead is now trying to avoid a recession.

The implications for the US dollar are ominous. The Fed and Treasury Secretary Paulson can try intervention to mop up surplus dollars from central banks and others who are choosing to reduce their dollar balances. They can also try talking up the dollar.

But it is not ‘talk’ that the dollar needs.

It needs purposeful action, like raising interest rates to make the dollar more attractive when compared to other currencies. It is therefore noteworthy that the European Central Bank and the Bank of England raised their interest rate this month while the Fed sat on its hands.

It is also noteworthy that gold and silver continue to hold up as well as they have.

A year ago gold was $442...

Given the shift in focus by the Fed from fighting inflation to avoiding a recession, more gains for gold and silver are likely.

Look across the valley. Look at the problems debasing the dollar, from rising federal government debt to central banks diversifying out of the dollar (the Bank of Italy being the latest in a long list of central banks taking that course of action). Then consider the implications of a Fed focused on avoiding a recession instead of preserving the purchasing power of the dollar. It won't take long to recognize that the dollar's exchange rate will head lower and inflation will worsen.

Gold and silver are the best way to protect oneself from today's growing inflation, and the worsening inflation already ‘baked into the cake’.

In the Monday, August 7, 2006 issue of Barron's I was asked about my gold outlook. I replied: "It's going up because of growing inflationary expectations and rapid money-supply growth." I was then asked whether gold should be bought now or to wait for the correction to dig deeper. My response was: "If I'm right and we're going to $850 and eventually four digits, does it matter whether you buy at $620 or $630?"

Therefore, view the current correction in gold and silver as a buying opportunity. Given that the correction is three months old and the Fed is now on ‘hold’, it seems likely that this current buying opportunity won't last much longer.

^---(from url)---^

An exceptionally nice primer by James Turk.


GoldiloxTriple Witching?#1467528/18/06; 10:42:49

I know today is expiry for stock options, but is it also true for other derivative vehicles?

The slaughter seemed to stop at precisely Noon EDT, or are $608 and $11.90 strong Fib points?

I'm going to keep an eye on the HUI, especially after the Comix close, to see if some hints are dropped.

spikedogGoldilox - price suppression#1467538/18/06; 12:03:40

OK, fair enough. I'll grant you that the D/R parties are two sides of the same coin. And I'll also defer that the politicians serve at the pleasure of others (who really pull the strings).

The remark about the Repubs cutting and running was just a wistful hope for a quick resolution to freegold (hey, we can all dream).

But it still begs the bigger question of how much longer can this go on? How much longer will the confidence game continue? Most people here no longer hold that confidence. It seems that a few central banks around the world are losing that confidence as well.

Are we now back to the theories posited by A/FOA about a reasonable transition? It would appear that they both thought this would be resolved by now. Or has this whole "reasonable transition" turned into a giant game of financial "chicken"? Where every party at the table is waiting for the other guy to make a move. And when one does, it's "Katie, bar the door" because there will be a mad stampede for the exits.

So, the options are: a) transition to freegold now and pay the price or b) transition to freegold later and pay the price. Who will lose in scenarios a or b? Who will win? I am talking big players here, not the shrimps.

Just to be clear, I am not impatient about the transition to freegold as I figure I have at least 50 years in me yet (God may have other plans). Just a curiosity over how far the rubber band can be stretched.

Thanks for listening,

mikal@Goldilox#1467548/18/06; 12:57:38

Re: Ceasefire. I agree two old saws apply:
"Easier said than done" and "Actions speak louder than words."
Re: "While PMs might have been successfully suppressed during the initial battles and terroism scares, one might wonder if renewed hostilities would find them as "well contained."
I disagree PM's were "successfully" suppressed at any time in the last five years of bull market.
With such unrelenting physical gold demand
worldwide for investment, diversification and reserves,
the financial PTB can only implement a rearguard action. The timing of the recent consolidation in POG is coincidence IMO, comparable to convenient claims
about oil markets, inflation and the latest hot topic
in relation to gold.
Still "one might wonder" is a good place to start.
Inquiry. Reflection. Self-determination. (Freedom from fascism). Happiness. Accord. Self-responsibility.
"The appearance of control is probably more financially useful than actual control, but renewed hostilities would reflect neither."
This would appear to be true, until the above is taken into account. Since these "appearances" are vital right up until TEOTWAWKI(the end of the world as we know it), vital to
most politicians of the world as well as their commercial support base and many citizens, any "renewed hostilities" will be accompanied by appropriate, premeditated spin control and opportunistic domestic and diplomatic(or undiplomatic) policy changes.
Especially relevent in the present geopolitical, social, economic and environmental global context, yes?

The Invisible HandAugust 22: Iran, N Korea and TAIWAN#1467558/18/06; 12:57:40

Armageddon (8/18/06; 09:59:58MT - msg#: 146747)Gold up or down on Aug 22?
On August 22 which is next week Iran is supposed to give its answer to the U.N. regarding its nuclear program. Furthermore, ABC news has reported that North Korea may be planning for a nuclear test soon. Will North Korea test a nuke on Aug 22

August 22 is a public holiday in China.,Group&getdate=20060822&PHPSESSID=c73cd6e15c6e23ba66e279431893f33e
Tuesday, August 22
China Holidays,
Group Calendar

Is this not the perfect day to attack Taiwan?

Here's the preparation:
China's UN Ambassador Asks the US to Shut Up
Official Opinion
China's Ambassador to the UN Sha Zukang admonished Washington yesterday of interfering in Beijing's domestic affairs, particularly in its military program. Asked by a BBC reporter about China's growing military budget, Sha Zukang did not contain himself and shouted out: "The population of China is six times as much as that of the United States. So, it's time for Americans to shut up and keep quiet. They will be better off like this."
China has not spoken so harsh on the Taiwan issue for a couple of years. These blunt words may cost Sha Zukang his post and career but the speech of China's ambassador to the UN shows the hardening of the Chinese leadership's stance on the Taiwan issue and possible conflict with the United States."
The moment Taiwan declares independence, supported by whoever! China will have no choice," he said. "We'll do the business through whatever means available to my government. Nobody should have illusion on that." "We'll do the business at any cost. It's not a matter of how big Taiwan is, but for China one inch of the territory is more valuable than life of our people. We are never consider on that!

Here's the guy's opinion about gold:
Statement by H.E. Ambassador SHA Zukang, Head of the Chinese Delegation, on Item 9 at the 59th Session of the Commission on Human Rights(1 April 2003, Geneva)
"There is no such thing as perfect human being as there is no absolutely pure gold".

Meanwhile, the Washington parasites will be discussing China's monetary policies.
August 22, 2006
China's Financial System and Monetary Policies: The Impact on U.S. Exchange Rates, Capital Markets, and Interest Rates
Hearing Co-chairs: Chairman Larry Wortzel and Commissioner Patrick Mulloy
August 22, 2006
385 Russell Senate Office Building Delaware & Constitution Avenues, NEWashington, DC 20510

GoldiloxGold Price suppression . . .#1467568/18/06; 13:10:37

is really just another form of human repression. Free gold will mean nothing if there are no free people left to enjoy it. We'll witness nothing more than corporate shells disguised as "government", and using gold as "backing" for their credit (power) ratings.

The use of terror and terror scares to eliminate the Constitution (as predicted by Gen Tommy Franks post-911), is critically important to the suppression of free markets and Free Gold, as repressive regimes always find a way to "confiscate" the very lives of their constituents. Control is but a subtler form of confiscation.

The struggle for Free Gold is a proxy for disappearing personal freedoms in the larger scheme of things.

While this is the point where we often stray into discussions outside the realm of our topical bounds, IMHO, it is important to keep this in the back of our minds as the "bigger picture".

GoldiloxMore Price Suppression#1467578/18/06; 13:29:40

@ mikal,

Thanks for your response.

I disagree with your opinion that gold price "holding" during heightened hostilities was coincidental. Had there not been some fairly obvious efforts at containment", suggested by Sinclair, et al, we would likely have seen the kind of 20-25% spike we saw during the opening days of the Iraq invasion. This seems a more typical reaction to heightened global tensions.

Just my opinion, but it seems to be shared by some more well-known gold analysts, as well.

You're certainly welcome to disagree, based on whatever evidence and intuition you hold on the subject. I'd hate for anyone to suggest that I was saying "To He!! with your opinion" because I happen to disagree. Got the tee-shirt for that already.

osa104cPro co ??#1467588/18/06; 13:32:40

Ninety-three years of silt stirs, truth and fact begin to blur, faithful knights plea for clarity, shills lend confusion across the land, the entire span acquiesces for ORDER, the masses begin to suspect, truth leaps by quantified measures, out of reach of most lambs.............OLD WORLD ORDER spreads its reflective wings........soon ........ lambs and wolves will both live in necessity // true monetary medium.............get sum........................AMF
Henri@ Clink#1467598/18/06; 15:21:25

Thanks for the link! Yes, that is much better :-)
USAGOLD Daily Market ReportPage Update!#1467608/18/06; 15:47:17">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold correction continues...

August 18 (from DowJones) -- Apparent limited buying interest, a dip in crude below $70 a barrel and a continued summer-long consolidation and correction period sent gold lower in New York on Friday, traders and analysts said.

COMEX December gold futures fell $3.60 to settle at $621.70.

Jes Black, fund manager with Black Flag Capital Partners, commented that gold is still correcting and consolidating after all of the speculative "froth" that sent it to 26-year highs earlier this year.

"Pretty much everyone was already in the market," he said. "So we're seeing a necessary and natural correction of that froth." Black said he looks for "good support" in gold around the $600 to $580 area.

"Possibly, we could go lower. But if it did go lower, it is going to provide a better buying opportunity," he said. The bigger picture is that pension money is continuing to flow into commodities and gold may be "fundamentally undervalued," he said.

"So I think we could see higher prices once this speculative froth gets worked out of the market," he said.

"We saw multi-year highs around $730 or so. (Since then,) we've seen gold do nothing but trade sideways or in a consolidation pattern. We had a parabolic spike in gold, so now we're seeing the market digest all of that before it moves higher. The natural market tendency is you can't move straight up. As we see it, gold is going to move higher. It's just a matter of when, not if. After such a strong move, it's going to take some time to digest that out of the market, and that's all we're seeing right now."

(from MarketWatch) -- From here, prices may test the "psychological $600 level is likely but strong interest from bargain hunters and physical players is expected, and will be a good area for investors to enter the market," said James Moore, analyst at TheBullionDesk, who remains in the bullish camp regarding the precious metal.

Gold, he said in a note to clients, "remains on course to finish the year above $700."

Peter Grandich, editor of the Grandich letter, agreed. "Gold continues to build a strong base above the psychological $600 level that should allow for a test of the yearly highs around $735 before year-end," he said.

"A new all-time above remains only a question of when, not if, as the U.S dollar eventually makes new lows below 80 basis the U.S. Dollar Index."

For now, however, news of an interest-rate hike in China, as Beijing continues to try to rein in surging investment and loan growth, put pressure on gold. The People's Bank of China raised its one-year lending rate to 6.12% and its one-year deposit rate to 2.52%, pushing both rates up by 0.27%.

Physical demand for gold from China has supported prices this year.

---(see url for full news, 24-hr newswire)---

The Invisible HandIs Yukos worth more than one-fifth of Russia's gold reserves?#1467618/19/06; 00:45:47,,1853618,00.html
Balance of power ebbs away from the US
· Europe and Japan put on a growth spurt
· China and India continue breakneck expansion
Britain's defence industry has received a major boost with the Saudi government signing a £10bn arms deal which secures thousands of British jobs in the UK and Saudi Arabia.
Earlier this week, an Amsterdam court refused to recognise the Russian bankruptcy of Yukos.
the court Thursday declined to allow Yukos liquidation manager Eduard Rebgun to control decisions and assets sales made by Yukos Finance, a company holding Yukos assets abroad.
The Dutch court ruled that Yukos main creditors, GML's Moravel and Rosneft, had the right to proceeds from sale of Yukos' 53.7% stake in Lithuania's Mazeikiu Nafta, worth $1.5 billion, Russia's daily Vedomosti said citing a Yukos representative. Yukos owes $800 million to Moravel, controlled by GML, and $450 million to Russia's state-run Rosneft.

Former YUKOS CEO Mikhail Khodorkovsky is serving eight years in jail for fraud and tax evasion. His jailing was criticized as selective justice against an ambitious "oligarch" who posed a political threat to President Vladimir Putin.

Meanwhile, the Russian Central Bank seems to be continuing marking its gold reserves to market.
Central Bank reports increase in international reserves
RBC, 18.08.2006, Moscow 17:39:35.Russia's international reserves (gold and currency reserves) increased by 6 percent to $265,698.6m from July 1 to August 1, 2006, the Bank of Russia reports.
GOLD RESERVES AMOUNTED TO $7,839.5M, UP BY 6.14 PERCENT FROM $7,386.5M ON JULY 1. Russia's reserve position on the IMF totaled $228.8m as of August 1, up by 0.4 percent from July. The position on the SDR reached $6.9m. Russia's foreign currency reserves have increased by 6.6 percent to $197.133bn in a month.


The gold reserves of the Russian Central Bank amount to $7,839.5M.
The Dutch court ruled over Yukos' 53.7% stake in Lithuania's Mazeikiu Nafta, worth $1.5 billion, $1,500 M,
i.e., worth ONE-FIFTH of the gold reserves of the Russian Central Bank.
What's wrong with my calculations?

melda laureAugust 22 means nothing, Olmertizing Iran will not make oil flow.#1467628/19/06; 01:13:31

Tehran, Bejing, Moscow will put their heads together for more "consultation". The iranian president will say something defiant as usual. And that will be that. The oil must flow. The west cannot afford to turn Iran's oil production into another Iraq and risk Saudi oil as well and possibly the whole dollar contraption.

Iran is the new Saudi Arabia. And they will not spoil that with rash moves. They will not risk becomming the next Lebannon.

Bombs will not make oil flow. Another Osirak might delay the nukes, but it will have to be a staged "accident" as overt action by US forces carries too much geopolitical risk. The only REAL political option is too far out of reach: for the US to BUILD the Iranians an enrichment facility and help them staff and monitor it (and loan them the dollar shackles to do it!) An insane idea, yes, but the Russians are thinking about it. Tehran of course would have to fully support a resolution of the Palestine Problem. Well the world isn't run by hobbits so forget about it.

US Hegemony - checkmate. Oil - checkmate.

The nuclear issue is a red herring, a great distraction, the story was always about oil for dollars. Invisible Hand was right in mssg #145699 on June 30. Geopolitics is over, that leaves the dollar farce, and that is only a circus act anymore: next act more clowns juggling derivatives. And more clowns. And more clowns.

Final act: burning down the tent. I'm taking my golden ticket outside on the hill.

melda laureWelcome sir Ampere!#1467638/19/06; 01:25:36

Yes, we talk about price too much because it is so plain. We mustn't forget to watch Volume as well, although it is much harder to see.
The Invisible HandFuture EU member Turkey collabs with Iran#1467648/19/06; 03:26:45
Turkey's formal application to join the European Community—the organisation that has since developed into the European Union—was made on April 14, 1987. It was officially recognised as a candidate for membership on December 10, 1999 at the Helsinki summit of the European Council, having been an Associate Member since 1963. It started negotiations on October 3, 2005, a process that is likely to take at least a decade to complete. Its possible future accession is now the central controversy of the ongoing enlargement of the European Union

Turkey is a future EU member.

Hereafter follow some snips from today's Taipei Times saying that Turkey is coordinating its effort against Iraq WITH IRAN, the new Saudi Arabia, says melda laure.
Melda laure also says I was right in mssg #145699 on June 30. GEOPOLITICS is over, that leaves the dollar farce, and that is only a circus act anymore: next act more clowns juggling derivatives. And more clowns. And more clowns.
In that message, I said:
Remember: once Iran is in the SCO (Shanghai Cooperation Organization), Freegold will be a fact.

The rest of the Taipei Times snips confirm yesterday's
Armageddon (8/18/06; 09:59:58MT - msg#: 146747
The Invisible Hand (8/18/06; 12:57:40MT - msg#: 146755)
August 22: Iran, N Korea and TAIWAN

Before I turn to the Tapei Times snips, let me try to see what is GEOPOLITICS, which melda laure says, is over.

Here's Norman D. Palmer and Howard C. Perkkins, under the editorship of the University of Colorado, with the 2nd edition (Houghton Mifflin Company Boston – The Riverside Press Cambridge, 1957) of their book
"International Relations - THE WORLD COMMUNITY IN TRANSITION" (capitalisation mine), p. 46-47


It was left to Nazi Germany to make the most of geographic influences on world politics.
In doing so the Germans developed what they regard as the science of geopolitics.

"Geopolitics, to take a convenient definition, is the science of the relationship between space and politics.

(remember me quoting yesterday that Chinese ambassador: "It's not a matter of how big Taiwan is, but for China one inch of the territory is more valuable
than life of our people".
The Invisible Hand (8/18/06; 12:57:40MT - msg#: 146755)"

The Invisible Hand :
His Excellency forgets that the world is in transition)
which attempts to put geographical knowledge at the service of political leaders.)

It is more than political geography, which is descriptive.

(The Invisible Hand; these don't exist in the internet age),

searches out facts and principles which can serve national

(The Invisible Hand: we are talking GEO-(earth in Greek)-politics)


(William H. Hessler, "A geopolitics for Americans", "U.S. Naval Institute Proceedings", LXX (March, 1944), 246.)

The fallacy of EQUIVOCATION consists in using one word in several senses or with a different "suppositio" in different instances (Juan Jose Sanguineti, "Logic", Manila, Sinag-Tala Publishers, 1992, p. 169),
it invites us to transfer what we are prepared to accept about one concept onto another one which happens to have the same name (Madsen Pirie, "How to Win Every Argument – The Use and Abuse of Logic", Continuum Books, 2006, p. 59)
Think about it, before equivoking Nazi German geopolitics with South Lebanon,
but for China one inch of the territory is more valuable
than life of our people, said the ambassador.

And now finally the

Turkey and Iran have dispatched tanks, artillery and thousands of troops to their frontiers with Iraq during the past few weeks in what appears to be a COORDINATED EFFORT to disrupt the activities of Kurdish rebel bases.
N Korea might try nuclear test: media
SEOUL CAUTIOUS: South Korea's unification minister said that the government had no clear evidence suggesting that the North was pursuing a nuclear test
North Korea, which last month defied the international community by test-firing missiles, could now be preparing its first test of a nuclear bomb, US media cited US officials as saying.
enough time has passed to conclude that Washington and other powers have no interest in turning China's involvement in Sudanese and Chadian military affairs into a debating point -- which is why Taiwan's loss of Chad as an ally on Aug. 5 has barely rated a mention outside this country.
At some point, as China turns the screws on the dwindling number of countries that recognize Taipei, the foreign ministry will need to take a new approach.
When Chad broke off ties with Taipei, the ministry distinguished between the actions of the government and the fortunes of more than a dozen Chadian students here, allowing them to continue their studies and taking with them a better understanding of what Taiwan is and what it offers. This is a reversal of a policy that applied most recently to Senegalese students, and suggests the ministry is looking for more sophisticated ways to counter Chinese propaganda.

And the Taiwanese counter-offensive was thus itself countered by the Chinese ambassador urging Americans to shut up and keep quiet.

The Invisible HandTurkei über Alles#1467658/19/06; 04:11:08
In short, as China is currently in favorable circumstances, efforts should be made to use some of its foreign exchange reserves to tackle a couple of longstanding knotty problems to accelerate the construction of a harmonious society in the country.
Raul Castro also said in Friday editions of the island's Communist Party newspaper that he had mobilized tens of thousands of troops in response to what he called aggressive U.S. acts, including stepped-up radio and television broadcasts to the island, and an $80 million plan to hasten the end of the Castros' rule
Castro took issue with a statement by President Bush a few days after his brother's illness was announced: that American officials "will take note of those, in the current Cuban regime, who obstruct your desire for a free Cuba."
Major oil producer Iran is to export natural gas to Europe via neighboring Turkey, the Islamic republic's oil minister said after talks in Ankara, the oil ministry announced, according to an AFP report
group of former diplomats and retired generals called on President George W Bush to open negotiations with Iran, warning that the use of military force would have catastrophic consequences for the region.
The only beneficiaries of this chaos are Iran, Hezbollah, Al-Qaeda and the Iraqi Shiite leader Moqtada al-Sadr, who last week held the largest anti-American, anti-Israel demonstration in the world in the very heart of Baghdad, even as 6,000 additional U.S. troops were rushing into the city to 'prevent' a civil war that has already begun,"

something for GATA
Gazprom, with 75 percent in Wingas Storage UK, has thus managed to bypass Britain's competition laws and retain control over the storage.
KIEV, August 19 (RIA Novosti) - Ukraine will make all efforts to ensure an uninterrupted supply of energy carriers from Russia to Europe, Ukrainian fuel and energy minister said Saturday.

Let's hope Kiev will succeed.
Otherwise, not only Amerika, but also Europa kaput.
Turkey has the advantage that it has a foot in Asia.

The Invisible HandThe World Community in Transition#1467668/19/06; 04:29:36

Israel mounts fresh Lebanon raid Israeli forces clash with Hezbollah deep inside Lebanon, hours after the UN warns of a "fragile" ceasefire.

Israel carried out an overnight raid inside Lebanon aimed at disrupting an arms transfer, the Israeli army says.
The incident came hours after UN chief Kofi Annan warned of a "fragile" situation on the ground.

28 freedom fighters escape from a Belgian jail.
28 gevangenen ontsnapt in Dendermonde
Achtentwintig gevangenen zijn in de nacht van vrijdag op zaterdag rond 02.00 uur ontsnapt uit de gevangenis van Dendermonde. Twee gedetineerden hebben hun celdeur opengebroken en daarna een drietal cipiers vastgehouden. Met hun sleutels hebben ze 26 andere medegevangenen bevrijd.


Give TRUTH, freedom, anarchy and gold a chance.

The Invisible HandRussia's gold reserves are insignificant, said I#1467678/19/06; 04:48:49


but where the president of the republic is traveling the world to find more reliable customers than dollar-freaks.

An overwhelming amount of local currency resulting from foreign exchange is used to cover astounding government expenditure. In order to curb inflation, the Venezuelan Central Bank has resorted to a wide variety of instruments, including the renowned Monetary Stabilization Funds
Financial analysts fear that if BCV continues increasing the amount of contained money at such a rate, it is possible that in the medium term it will be unable to pay interests accrued. As a result, it will have to relinquish the absorption policy and let prices to rebound.

The Invisible HandWant to know what Freegold is?#1467688/19/06; 04:53:48

Read this!
The Invisible HandHere's why Amerika and Europa are kaput#1467698/19/06; 05:22:11


They think they are an FTA themselves.
Fortunately, Turkey is only half European.
It's from that Muslim Eu-member-state-to-be that the salvation will come from. Inch’Allah!
Energy resource-poor Japan is revving up its diplomatic drive to strengthen relations with the oil- and gas-rich countries of Central Asia in a bid to ensure its energy security amid stubbornly high oil prices.
Japan invited foreign ministers of Central Asian nations to talks in early June. And in a more significant move that highlights how passionately Japan is wooing the Central Asian nations, Prime Minister Junichiro Koizumi, who steps down in late September, will visit the region at the end of this month, becoming the first Japanese premier to do so. Koizumi will visit Kazakhstan and Uzbekistan to discuss with their leaders — Kazakh President Nursultan Nazarbayev and Uzbek President Islam Karimov — economic cooperation, anti-terrorism measures and cultural and personnel exchanges.
Japan's energized diplomatic drive in Central Asia comes at a time when Tokyo is implementing its new energy strategy aimed at ensuring stable oil, gas and other resource supplies in the long term to feed the world's second-largest economy.
The Ministry of Economy, Trade and Industry released its new national energy strategy at the end of May. It calls for, among other things, strengthening ties with resource-rich countries through such measures as free-trade agreements (FTAs), promoting nuclear energy, and securing energy resources abroad through the fostering of more powerful energy companies. The new strategy specifically calls for increasing the ratio of "Hinomaru oil," or oil developed and imported through domestic producers, from the current 15% to 40% by 2030. Japan has also decided recently to utilize aid to strengthen ties with resource-rich countries.
In early 2004, Japan and Iran signed a $2 billion deal to develop Iran's massive Azadegan oilfield. But with international tensions rising over Tehran's nuclear program, there are growing concerns in Tokyo about how the nuclear crisis will play out. China won rights to the Yadavaran oilfield in Iran. Many analysts point out that should Japan be forced to give up the Azadegan project as part of international pressure on Tehran, Beijing could step in to replace Tokyo.

I posted this recently
Monday, August 14, 2006
· In a region where loud voices of integration shout over a reality of failed trade policies, Chile's alternative to access to the Pacific may be a viable solution.
By Sam Logan
Chile sees MercoSur as a hollow institution, one that exists more on paper than not. Matus and other Chilean trade negotiators point out that MercoSur's layer upon layer of disputes is proof that the organizational commitment at an institutional level is just not present.
As an OBSERVER OF MERCOSUR, Chile has likely learned from mistakes made by the custom union's members
Chile has signed FTAs (free trade agreements ) with CHINA, SOUTH KOREA AND NEW ZEALAND.

The Invisible HandConclusion - A Brief History of Time#1467708/19/06; 05:38:20

1.Powerful Nations will not willingly give up Their Superior Rights
2.These are Historic Moments
3.Restructuring to an efficient Internal Economy
4.Democratic-Cooperative-(Superefficient)-Capitalism, Restructuring all Societies to a Life of Peace & Leisure

Stwphen Hawking


We find ourselves in a bewildering world. We want to make sense of what we see around us and to ask: What is the nature of the universe? What is our place in it and where did it and we come from? Why is it the way it is?
However, if we discover a complete theory, it should in time be understandable by everyone, not just by a few scientists. Then we shall all, philosophers, scientists and just ordinary people, be able to take part in the discussion of the question of why it is that we and the universe exist. If we find the answer to that, it would be the ultimate triumph of human reason -- for then we should

The Invisible HandGeopolitical Dynamics of the Korea Proliferation Crisis#1467718/19/06; 06:23:50

Yesterday, upon reading
Armageddon (8/18/06; 09:59:58MT - msg#: 146747)Gold up or down on Aug 22?
I started babbling about Taiwan.
Here's more about N-Korea. This time from the point of view of the US of A dollar. Not from the point of view of the People's Republic of China (like Taiwan).
Melda laure, I don't know what to tell you. Some seem still to be thinking geopolitically.
Tax is theft, government is fraud, and I can't put my mind on trying to understand that. I am only good at criticising.


Even as the world's sole remaining superpower that enjoys structural economic advantage derived from the globalization of market fundamentalism based on dollar hegemony, the US still does not command the necessary resources for unilateral management of the security problems of the entire world without full mobilization for total war. Even as a formidable hegemon, it must set priorities in a global security challenge that does not allow room for prioritization. This is because nuclear proliferation, like inflation, crosses national borders like a river with its own logic. Therefore it is impossible to contain proliferation within any national borders as long as global markets exist for dual-use technology. Restrict dual-use technology trade, which increasingly permeates all sectors in the world economy, global markets will stall, causing more damage to economic security than proliferation to military security to the very superpower that benefits most from a trade regime based on dollar hegemony.

Dollar hegemony depends on the dollar being fully fungible, i.e., able to buy anything in the market without conditionality. And the nature of dollar hegemony is that while the US and only the US can print dollars at will, much of the dollars in circulation are no longer held only by US citizens but also by others, including would-be terrorists and their supporters. US economic sanctions against other trading nations are counterproductive because sanctions are acts of economic warfare that undermine the global free trade regime promoted by the US.

Furthermore, much trade assets in foreign nations are owned and operated by US transnational corporations and any deterioration of the value of such off-shore assets impacts negatively on the US economy. The global economy has become too efficient to withstand even the slightest slowing down in any one sector without serious consequences to the whole economy. Such is the dilemma facing US security strategists on imposing nonproliferation through economic sanctions."


Hawking's conclusion was indeed the conclusion of his book "A Brief History of Time".

GoldiloxSlowdown Concerns#1467728/19/06; 08:08:50


"Furthermore, much trade assets in foreign nations are owned and operated by US transnational corporations and any deterioration of the value of such off-shore assets impacts negatively on the US economy. The global economy has become too efficient to withstand even the slightest slowing down in any one sector without serious consequences to the whole economy. Such is the dilemma facing US security strategists on imposing nonproliferation through economic sanctions."

George Ure of UrbanSurvival recently prepared an excellent piece on the nature of Just-In-Time (JIT) economics, and its particular vulnerabilies to distraction, and even more worrisome, serious disruption. Globalism requires that the various economic components function in sync. At some point, all the failsafe contingencies for resource and product delivery are vulnerable to breakdown from geopolitical roadblocks.

Perhaps this is why the serious Globalists support NWO politics, as stronger central control reduces sectarian concerns, be they of religious, social, or political origin. Thus you see support for CanAMex, EU, and PanAsian efforts as a potential "next step" to single world gubmint. Three controlling bodies is much simplified over the current hundred plus, with a rather ineffective UN.

If the globalists are successful they will most likely institute three new FIAT structures, hoping to move to one, and THAT's why they want NO PART of "Gold is Money". This may also require the end of Dollar Hegemony, and transition to a new FIAT structure.

Power, in their mind, must be wrestled from "independent" thinkers, and they must control all "credit", aka DEBT. To them, assets are defined as "obligations", rather than physical holdings. Even RE, with its massively inflated prices, has been modified to the point where taxes and/or mortgages keep it incumbered forever, in most cases. This was the "flaw" I saw in DeSoto's work on third-world RE reorganization.

Kinda puts the Bush, el al, rants about "freedom and free markets" under a new microscope, focused more economically than politically . . . not to single out Bush. There are plenty of Globalists in both major political parties and other governments, since they are all beholden to larger international banking concerns, aka the "Money Masters".

From a FIAT Master's perspective, Free Gold is not a concern, if

1) they manage to wrestle control of enough gold resources to maintain control of the resource and perpetuate the "gold is a commodity" story.

2) they can minimize the political aspects of any "Free Gold" movement.

Just MHO. Alt.ideas are welcome.

GoldiloxBonepile Updates#1467738/19/06; 08:17:27


Tired of losing money, Ford is cutting production by 20% and planning other cost reducing moves.

This isn't the part where I stand up and ask "Why wasn't anyone in Detroit looking at Peak Oil and inventing "better-than-Prius" hybrids and high mileage cars when we had time?" That was back in the 1990's we were asking and Detroit was (and still is) asleep.
Delphi (ex GM) is also cutting 6,300 jobs.
Not just cars slowing. Boeing is planning to close their C-17 Long Beach operation.


More lost manufacturing. "Will you have fries with that, sir"?

While the Tesla Motors intro is not a total solution, given that our electrical grid is so oil and gas dependent, their thinking is a step in the right direction, IMHO.

mikalAny gold (port) in a storm#1467748/19/06; 13:22:34

Gold Buffalo Strikes Sour Note | Simon Constable | 08/18/06

Ahoy maties! Gold's yer life preserver.

You'll see when ya read this hit piece I've captured!

Ignore the prigs and poseurs, the bluestocking bluffers.
It's a lucky thing we've got this safety valve to vent our feelings otherwise we'd raid the Mint in the morning!
All hands on deck. Just fill up yer chests!
Into the chests, all of 'em I say, old and new, smelly and dainty!
Aye me hearties, there's no pleasure so pure as tossing these lovelies as if they was TREASURE. HAR!

Clink!When paper markets fail#1467758/19/06; 17:36:49,,8210-2318156,00.html

This article is exceptional for numerous reasons, not the least being the language used from one of the most establishment news channels in the UK. It describes the "interesting" situation in nickel at the LME.

Snip :-

WHO took all the nickel? Once again, there is a fever of speculation about an otherwise dull commodity and the London Metal Exchange has been forced to intervene, effectively rigging the forward nickel market in favour of struggling "shorts" and denying the "longs" their pound of flesh.

The LME has little choice but to tinker if it wants to stay in business. Stocks of available nickel in LME warehouses no longer represent weeks or days of consumption but hours. The "shorts", investors who sell metal they don't own in the expectation that the price will fall, are in dire straits — they cannot deliver the metal they owe. The price has soared to almost three times the long-term benchmark of just over $9,000 a tonne and people are talking darkly about a squeeze, about hidden stockpiles.

Without stocks, the LME's forward nickel contracts would have no underpinning and the exchange would have to suspend trading. But the fundamental question that is being asked is whether these commodity exchanges are merely reflecting physical supply and demand or creating their own reality. Outside the LME, nickel is widely available, albeit at a premium to the LME's inflated price. Is the tail beginning to wag the dog?

End snip.

Let's take a look at that again.

"forced to intervene, effectively rigging the forward nickel market in favour of struggling "shorts" " Looks like LME management is openly taking sides, and this after they must have knowingly accepted trade with inadequate margin from these shorts.

"The "shorts", investors who sell metal they don't own in the expectation that the price will fall, are in dire straits — they cannot deliver the metal they owe." I think we at the forum would use words other than "investors"

"Without stocks, the LME's forward nickel contracts would have no underpinning and the exchange would have to suspend trading." Sounds like Another story.

"Outside the LME, nickel is widely available, albeit at a premium to the LME's inflated price." OK, this had me a little puzzled. How is the LME price inflated if it's less than the physical price elsewhere ? Note also the premium being demanded for real, physical delivery. Note also that while the physical price is higher than the LME one, the LME contract price (in fiat) has still risen substantially. It will be interesting to see what happens if/when the trading halts.

A situation I feel bears close watching as an augury for the PM markets.

Clink!@ Mikal#1467768/19/06; 17:38:35

Sounds like the Cap'n has already been to your abode ! LOL !

The Invisible HandToday, I'm Marxist#1467778/20/06; 00:21:02
by William Norman Grigg
August 19, 2006
"During the cold war, U.S. imperialism was able to prevail by enlisting Maoist China, Japan and the European Union in an aggressive encirclement of the former Soviet Union," writes veteran Communist Party agitator Gerald Horne in the August issue of Political Affairs, the journal of the Communist Party USA. "Yet today [the United States] seeks to confront both Russia and China despite being debt-ridden and militarily overstretched in Iraq and Afghanistan."
In addition, "China and Russia have welcomed Iran into an organization little-known in this nation … the Shanghai Cooperation Organization," created by Beijing and Moscow in June 2001. Furthermore, "the twin giants of the 21st Century, China and India, have ambitious plans to buy stakes in Russian oil producers," and "Moscow is maneuvering to develop a natural gas equivalent of OPEC" — developments that position MOSCOW very well to be an ECONOMICALLY DOMINANT POWER as world energy markets tighten]

Theories on Militarism and Prospects for Transformation ::
by Brian Bogart
Few things are more crucial to our global situation today than a comprehensive understanding of the fundamental habits and recent overtly aggressive trend present in United States foreign policy. To achieve such requires a look into the long-standing tradition of creating external threats to conceal unsavory imperial operations conducted elsewhere in the world. This paper includes an examination of the US-USSR Cold War and the so-called "war on terror" as covers for expansion of imperialism, and 9-11 in the context of provoked and internally engineered first strikes throughout American history, devoting much of its contents to theories on militarism and post-World War II influence on policymaking—how and why those in power do what they do
WHAT APPEARS RANDOM MAY BE ANYTHING BUT RANDOM as we collectively recognize the need for, prepare for, and execute the necessarily humbling measures for a leap across the chasm from dark uncertainty to an enlightened existence, changing entirely the connotation of "intelligence," from the negative-activist "gathering of secret information about an enemy," to its primary meaning, the positive-activist "ability to use memory, knowledge, experience, understanding, reasoning, imagination, and judgment in order to solve problems and adapt to new situations." [93]
In the end, "doubt that the stars are fire, doubt that the sun doth move," the answer—as in Shakespeare's time—is that in the micro and macro sense, we do not yet know all it would take to know what drives us. After all, theory is mere conjecture. However, every indication imaginable suggests that this, too, is about to change with a monumental forward leap.


Freegold is not something which the invisible hand of the gold market will realise.

Freegold will only be realised by the very visible hand of the state and its politicians.

I lost my belief in politics long ago. I thought originally that the relation of DOMINANCE and SUB-ORDINATION was peculiar of the labour relation or the employment contract. (Roger Blanpain, for whom employment relations are power relations, can you hear me?),

but it seems that we the sheeple are part of a global governance of world affairs with their own relations of dominance and sub-ordination.
(note the etymological origin of the word "sub-ordination", sub = under, ordo (with genitive ordinis) is order.
(if there is an order, this order imposes certain rules upon reality and our masters are of course not to deviate from these rules. They are kept in check by these rules. Over there, they call that "checks and balances" I come back to the Stoa in a moment))

The linked text provides a glimpse into how our masters achieve this dominance and our subordination and thereby achieve global governance of world affairs.

The gold price governance is of the same kind as that global governance in its original meaning. It is indeed a pillar of the global world order which global governance wants to achieve.

Freegold and Slavegold are therefore 100% political matters and zero percent invisible hand events,

Don't try to find happiness in pleasure (like the Epicureans),

but try to find in WISDOM (like the Stoics),
a wisdom by which to control what lays within human power and to accept with dignified resignation had had to be.

The world is an ordered arrangement where human and physical things behave according to principles of PURPOSE
(SAMUEL Enoch STUMPF and James Fieser, "Socrates to Sartre and Beyond – A History of Philosophy", McGrawHill, 2005, 7th international edition, p. 108).

Nature, the whole cosmos, is pervaded by a goal and purpose,
and to live according to nature means to work with it toward the harmony and orderliness that is inherent in it.

As EPICTETUS (60-117 AD) said
Like nature, human beings also are subject to an all-pervading harmonious and rational ordering,
and, just as cosmic peace is the expression of such law and harmony,
so tranquillity of the individual is nothing else than the good ordering of the mind.
A person who attains a good ordering of his mind and is at one with himself acts and feels responsible without blaming others or himself for whatever happens to him.
To accuse others for one's own misfortunes is a sign of want of education;
to accuse oneself shows that one's education has begun;
to accuse neither oneself nor others shows that one's education is complete.
(Gata, can you hear me?)
Do not seek to have everything that happens happen as you wish,
but wish for everything to happen as it actually does happen
and your life will be serene.

(EBENSTEIN and EBENSTEIN, "Great Political Thinkers – Plato to Present", Thomson-Wadsworth, 2000, 6th edition, p.143-4)


Yes, it is not the invisible hand which will realise Freegold.
Freegold will only be realised by the very visible hand of the state and its politicians.

But these gangsters would have been ordained to achieve it. Let's hope it's true.

Following Aristotle, Thomas says that the norm of morality is RECTA RATIO
which is man's rational nature ordained to its final end.

As Bogart says in the link:
Hamish McRae: The world comes back from holiday to find it can't go on living beyond its means
If US consumers pull back, it will have a knock-on effect on Asia
And, the final question - where are the surprises? A dollar crash? Some other sort of financial market disruption? Surprises cannot be predicted, so the issue is how well the financial system can cope with them. There is quite a strong global liquidity squeeze taking place, but real interest rates are still low by historic standards. The world's financial institutions look pretty robust but there may be some stress-testing ahead.
So, an interesting autumn looms. Faster growth inevitably leads to higher interest rates. We should welcome the former but beware the latter. A lot of people and institutions all around the world are over-borrowed. Coping with that is the task ahead.

ArmageddonAre the centrral banks planning to slam gold in September in response to a major terror attack?#1467788/20/06; 01:23:37

Based on the following article it seems that perhaps the central banks are holding back their officially allocated sales for gold this year until the month of September.

From the article:
"Personally, I would be little surprised if they suddenly start selling 160 tonnes between now and 26th September, because one would wonder why they haven't done it before,"

Hmm. Would 160 tons of gold sold on the day and the days following a major terror attack on America be enough to surpress the price of gold to reasonable levels?

The question I was asking myself is why are the central banks waiting to sell their gold when historically they have sold all their allocated gold before??????

Europe's central banks may miss gold sales target
Europe's central banks are expected to sell only about three-quarters of the full quota of 500 tonnes of gold in the second year of an agreement that regulates bullion sales, analysts said.

The market has discounted further sales, on top of some 340 tonnes already sold, in the remaining six weeks until the second year runs out end September, but any sudden offload might push prices sharply lower, they said.

"History is that they always sold the limit, however there has been no indication of any large sales," said Matthew Turner, analyst at precious metals consultancy Virtual Metals.

Although sales have picked up in recent weeks, central banks would need to up the pace to meet the target, he added.

However, some analysts attributed recent weakness in gold partly to central bank sales.

"The sense in the market is that some of the selling activity that has been going on has been (by) central banks," said Stephen Briggs, economist at SG Corporate and Investment Banking.

There has been no official word to confirm or deny any large-scale selling by central banks.

Europe's Central Bank Gold Agreement (CBGA) was negotiated in 1999 to stabilise prices when gold was languishing below $300 because of the attraction of other investments.

The pact, agreed in 2004, raised the limit on gold sales by its 15 signatories over five years to 2 500 tonnes at a rate of 500 tonnes a year, from 2 000 in the previous 1999-2004 period.

The banks sold the full quota of 2 000 tonnes during five years of the first agreement and 497.2 tonnes in the first year of the current pact.

"According to the data released, the signatories have sold around 338 tonnes up to last Friday. This would not include any forward sales, which have not yet matured," Jill Leyland, economic adviser to the World Gold Council, said.

"Personally, I would be little surprised if they suddenly start selling 160 tonnes between now and 26th September, because one would wonder why they haven't done it before," she added.

Analysts said the banks would have to sell more than three tonnes a day until late September to meet the 500-tonne limit, but selling at such a high rate was unlikely.

The European Central Bank sold about two tonnes in the week ending August 11, they said.

France has sold 116,50 tonnes until end-June of the second year of the agreement, higher than the total sold last year of 115 tonnes. As of June 2006, it had total gold reserves of 2 790 tonnes. Spain sold 35,6 tonnes, up from 30 tonnes.

Germany, the world's second largest holder of gold, announced in March 2006 it would not sell during the second year.

Gold prices fell to a three-week low of $611,90 an ounce on Friday mainly on technical selling and a weakness in oil prices over the week.

But prices are still about 18% higher from the start of the year, although well off May's 26-year peak of $730.

"There's been talk circulating about central bank gold sales. I see it as a double-edged sword," James Quinn, commodity commentator for AG Edwards in New York, said.

"If you are bullish you say they are holding back because they don't want to sell the gold. If you are bearish you're saying they'll eventually sell gold because they can."

A New York-based gold trader said that people were aware that the central banks would not meet the target.

"But people know there as been some central banks selling around and if that persists throughout the month, it's going to be dangerous being long."

melda laureHard to belive this downhill trail leads to a more civilised order.#1467798/20/06; 01:40:35

"Freegold is not something which the invisible hand of the gold market will realise."

I seem to remember someone commenting about Giants. As they will, so will it be. Sort of like "dont fight the FED". How did it go? "Can you not follow in the footsteps of Giants? It is an easy road to follow!" Of course it is easy, with footprints like a pack of marauding orcs. These clowns have their own trailmap and they keep it better hidden than some presidents I know.

The lack of sufficient new projects to deal with the energy crisis is disturbing. I wonder at what point public highway projects start getting "delayed" and China switches to building more rail lines instead of highways. I think that perhaps FOA/Another did not fully appreciate Peak Oil. There are so many angles that it is easy to be distracted by all the facets: Physical Gold is a simple solution to a complicated world transition. Viewing the panoply of curses we are beset with, it is easy to forget that many a "consumer" right now wishes he had more gold, less debt and more finacial sense. Unfortunately most only wish they had more fiat, they are hopelessly addicted.

"Surprises cannot be predicted"... Well, I suppose not, but apparently sunspots can. Time and tide wait for no man, tis said, and apparently no Giant neither. They too must weather the storm or crack.

melda laure(No Subject)#1467808/20/06; 01:47:07

Maybe the selling is over.
Maybe the credit squeeze will hit physical too.
Maybe there are bigger problems and they're keeping ammo in reserve.
In the daily reckoning site, there is the comment of Dr Richebacher that by december 2006 the whole shebang will unravel.

The days of easy pickings wont last forever.

GOLD FINGERAs an investor, I'm investing against the U.S. dollar. Let me be clear: I'm not investing against the U.S.#1467818/20/06; 01:59:55

I have read a few of his books (Robert Kiyosaki) and he make a lot of good points.
I am GLAD to have gold in my hands. At least I know where my nest egg is going!!


The Invisible HandThe silent agony of a worn-out system#1467828/20/06; 02:39:54

Bond Yields and Markets by Brian Bloom
In 35 years of watching markets I have never seen anything quite like the three charts that follow:
- The daily yield oscillator looks like it may be bottoming out
- The weekly yield oscillator is giving a sell signal
-The monthly yield oscillator is giving a buy signal
Of course, in this case, "buy" is bearish and "sell" is bullish
The bottom line therefore is that the Central Banks cannot allow the US economy to tank because it is still the ultimate driver of the World Economy. To argue that "China" or "Russia" or a combination thereof will become the epicenter of the world economy is, in my view, a bit premature.
I don't consider myself to be smart enough to outsmart the markets. Right now, I don't see how anyone can make the call. It's just too hard. But in the end analysis, common sense is all that we have going for us. And my common sense tells me that we need to remain flexible. We need to be liquid. Cash rich and asset poor is probably what most people today are not. If history is any guide, that's the Achilles heel; and markets love to go for the Achilles heel.


We are faced with a very strange interest rate situation.

Since the 1985 all times high of 12.5%, the Price Momentum Oscillator (PMO)-indicator has never surpassed the zero line.
Since 1985 interest rates are decreasing in a linear way.

Now (2006), some change in these 20 years of linear decrease seems to be forthcoming.
We are seeing that the PMO-indicator is clearly penetrating through the zero-line.
This means that the interest rate decrease has almost certainly stopped.
But does this mean that we are witnessing a significant (substantial) interest rate increase? NO!


Because an interest rate increase would have a DISASTROUS DOMINO-EFFECT ON THE WHOLE DOLLAR PONZI SYSTEM.
This explains why the synchronised bank policies are not yet considering it suitable to let the price of gold (POG) break through.

But the short term chart of the UST-30 yr interest rates display conflicting signals!

Very confusing situation from a TA/TI point of view.

Brian Bloom, the author of the snips, is therefore probably right in choosing an expecting/awaiting cash-position.

The price of oil (POO) chart seems to indicate a top pattern without there being any indication of the future direction of the POO.

Everything seems to be so "NEUTRAL". This should raise many suspicions for the observers. But nobody says anything.

That's why the Dow remains since SIX YEARS under it 2000 all time high, thus neutral.

Is this not the perfect global assistance situation for the geopolitical dollar-order positioning which is happening in the Middle East and Eurasia?
Or does this suggest to us that we can expect that during the "transition-period" some other niceties (9/11 stuff) will happen?

The euro gold chart is again at a very neutral price level (median EUR 580).
Again, just like for oil, the existing trend is not being broken.
And this while USDX is still at 80.

Maybe somebody could cool down real estate inflation without therefore putting real estate prices in a falling trend?

Everything seems to very well orchestrated/tuned.

Like in Lebanon.
Storm (drama), then nothing.
Now, Israeli commando raid alarms UN .
Kofi Annan calls Israel's commando raid on Lebanon a truce violation and expresses deep concern.


Most of the critical observers seem however to have the Stoic intuition that there is an order in this world and that our masters cannot indefinitely continue to violate this order without bad consequences from them.

This complete relative neutrality is now going since almost a full decade.

Yes, a dollar crash?
Hamish McRae: The world comes back from holiday to find it can't go on living beyond its means
If US consumers pull back, it will have a knock-on effect on Asia
And, the final question - WHERE ARE THE SURPRISES?
SURPRISES CANNOT BE PREDICTED, so the issue is how well the financial system can cope with them. There is quite a strong global liquidity squeeze taking place, but real interest rates are still low by historic standards. The world's financial institutions look pretty robust but there may be some stress-testing ahead.
So, an interesting autumn looms. Faster growth inevitably leads to higher interest rates. We should welcome the former but beware the latter. A lot of people and institutions all around the world are over-borrowed. Coping with that is the task ahead.

But McRae says that a dollar-crash would be a SURPRISE.

What's wrong with this world?

Why do bureaucrats (and others) think they can do anything they want with impunity.

And me, I continue to do what I have always done, crying "WOLF, WOLF, WOLF!"

Don't worry. Nobody will listen. We will all be very rich. It's not our fault. (Remember I'm Marxist today.)

The Invisible HandYes, there is an order in the world#1467838/20/06; 02:53:49

Colin Campbell: "The term Peak Oil refers the maximum rate of the production of oil in any area under consideration, recognising that it is a finite natural resource, subject to depletion."


Yes, there is an order in the world.
The most obvious (and to most people for all practical purposes sufficient) reason why we ought to respect the natural law primarily involves the fact that not doing so usually causes immediate harm or loss to some innocent people and is likely in the long rum to be harmful to many more. The harm results from the fact that in not respecting the natural law one fails to distinguish properly between persons and other things, or between one person and another.

Note, however, that the assumption of the respectability of the natural law is compatible with the assumption that not respecting the natural law may, and often does, benefit those who do not respect it and perhaps others as well. However, unlike the utilitarian philosophers, the natural lawyers make a distinction between, on the one hand, justly or lawfully acquired benefits and justly or lawfully suffered harms and, on the other hand, benefits acquired and harms suffered as a consequence of unjust or unlawful actions. They can do this if the distinctions between persons, and between persons and other things are objective--which is something that few people doubt.

Opponents of natural law believe that there is no natural order of the human world or else that it is not a respectable order. Hence, they see no reason why they (or anybody else) should respect the distinctions that define that order.

The Invisible HandSCO confusion#1467848/20/06; 04:11:07;

LONDON, August 20 (IranMania) -.
[The Iranian Foreign Minister Manouchehr Mottaki] also exchanged views with the Kyrgyz minister [of Economy and Finance Akylbek Japarov] on expansion of mutual ties which he referred to as positive and constructive.
As the current head of Shanghai Cooperation Organization (SCO), [the Kyrgyz minister] briefed Mottaki on SCO's role in raising economic cooperation between the two states and said, "Iran's presence in this organization can improve the prospect of cooperation in the interest of all member states.
"The participation of Iranian President Mahmoud Ahmadinejad in SCO's next summit due to be held in Kyrgyzstan can be very effective and decisive in strengthening this organization," concluded Japarov.

When is that next summit?
The next meeting of the Council of Heads of State will be held in Bishkek in 2007. Kyrgyzstan will assume SCO presidency next year

IranMania said that Kyrgyzstan is already holding the presidency of the SCO.

Why all the confuson? And in what capacity will Iran participate in the next meeting? Observer or member?

If I reread the snips, then I must conclude that Iran is already a member.

As melda laure remembered yesterday:
once Iran is in the SCO (Shanghai Cooperation Organization), Freegold will be a fact.

sageWhen they lose control#1467858/20/06; 07:57:49

Good Sunday morning to all:

I have been lurking here and learning at this fine site for years now and I have until this moment writing twice into this forum seeking advice. I quietly have been accumulating gold and silver for the day of reckoning in the financial markets. In my humble opinion and from what I perceive we shall never see the gains in the precious metals market until the PTB lose control. They will lose control eventually; however, they will also make a huge mess of civilization in the process as they will not go quietly into the sunset. What will our world look like? I really do not know. I am like a small minnow hiding at the waters edge while the carnage goes on in the deep. Our day will come, we must continue to quietly build a solid gold foundation for our selves and if be for our inheritors. Free markets do not exist and will not until things collapse and reality can reign true again. This, I guess is my graduation day as I continue my education into how things work. Gold may never reach the numbers we dream of in US dollars, but after they lose control the assets Gold owners can acquire with there hord will be vast and solid. Hang in there and thanks to all for this great site. As for me and my household, I will continue to accumulate, but I will spend less of my time in trying to figure out why things happen as they are out of my hands and the day will come when they (THE CURRENT MARKET MANIPULATORS )will fall upon there own swords.

Blessing to all


USAGOLD / Centennial Precious Metals, Inc.Don't miss out on this unique opportunity...#1467868/20/06; 08:45:16

South American gold

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Six Countries. Twenty coins.

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mikal"The civil war divided our country...#1467878/20/06; 10:29:47

,but gold built it."
but gold built it."
Haul That Glitters - Washington Post - August 20, 2006
A love of nature and history motivate modern panners as much or more than treasure hunters.

Knallgoldmisc.#1467888/20/06; 11:05:42

"Once again, there is a fever of speculation about an otherwise dull commodity and the London Metal Exchange has been forced to intervene, effectively rigging the forward nickel market in favour of struggling "shorts" and denying the "longs" their pound of flesh."--CLINK!Good post Clink! #146775

Yeah when did you hear last time they actually helped the longs?And there are still those suckers buying Gold futures (and call themselves freemarket types after crying "daddy help us!")

"Most of the critical observers seem however to have the Stoic intuition that there is an order in this world and that our masters cannot indefinitely continue to violate this order without bad consequences from them."--TIH

That was basically Ari's point,the systemic risk they are unmistakenly facing.Hence,FreeGold is a done deal.The smoothly rising price signaling that still all are agreeing.

mikalUnravelling "government oversight"#1467898/20/06; 12:39:28

So Many Humbugs, So Little Time | Bill Bonner | 8/19/06
Why successful businesses and investors do put much faith in government or statist institutions like "the Fed".

mikalCorrection to typo#1467908/20/06; 12:41:50

"Why successful businesses and investors do NOT put much faith..."
melda laure(No Subject)#1467918/20/06; 16:32:12

Your link was missing a letter L.
mikal@Meldalaure#1467928/20/06; 16:58:01

Thank you for catching that.
mikalGlobal inflation fuels arms transfers#1467938/20/06; 17:00:09,,5-2321759,00.html

Oil price rise fuels leap in US arms sales - Business - Times Online - Robertson - August 20, 2006
mikalAsia economic partnering and diplomacy#1467948/20/06; 17:41:47

ASEAN Rushes to Create EU-Style Market | Associated Press | Eileen Ng | 8-20-06
"China and ASEAN have agreed to create a no-tariff zone BY 2010 in their combined 2 billion population region."
And as ASEAN moves up the date for an "EU-style" market, Japan makes overtures to speed up trade integration with the bloc including India.

mikalME gold tradition accomodates market twists#1467958/20/06; 17:54:30 Value of Gold Trade in Dubai Increases | Robert Ditcham | Gulf News | August 20, 2006
"The value of second quarter gold sales surged 18% over the same period last year", according to the WGC.
Consumption tonnage was said to be down in the gulf region on "higher prices", "price volatility" and stock market weakness but they admit these same factors drive some investors to a purchase.

mikalAlternative power ad appears in Economist#1467968/20/06; 18:22:28,,1854305,00.html

Scientists Flock to Test 'Free Energy' Discovery | The Observer | UK News | 08-20-06
GoldiloxAlt energy sites#1467978/20/06; 20:42:11


My favorite alt energy sites are:

moderated by Tim Ventura,


with Sterling D. Allen.

As with any bleeding edge work, the main difficulty is determining what is viable and what is vaporware, as we say in the computer biz.

I believe John Searl has issued a similar challenge for his SEG.

Nothing like an "oil crisis" to bring all the back-shelved energy work out of the closet.

mikalThe promise and perils of African alluvial gold#1467988/20/06; 20:44:02 BBC NEWS | Business | Sierra Leone eyes a golden future - 08/20/06
Summary: GFMS comparative stats on African gold output
attest to growth in small nations but lacks data on
alluvial gold. The growing promise of alluvial gold depends in part on reliable, regulated markets, fair pricing, stable currency and realistic governance.

The Invisible HandAugust 22 or August 31?#1467998/20/06; 21:19:49
LONDON, August 20 (IranMania) - Iran test-fired a short-range missile on Sunday during the second day of nationwide military exercises in a demonstration of its readiness to "respond to any threat," Iranian state television reported
The UN Security Council has given Iran until AUGUST THIRTY-ONE to halt enrichment and reprocessing activities or face possible sanctions.
But Iranian foreign ministry spokesman Hamid Reza Asefi told reporters Sunday that a freeze of the nuclear work was "not on the agenda
Oil market watchers are concerned that possible sanctions against Iran may lead to severe disruption to global supplies of energy.
"NEXT TUESDAY, [AUGUST TWENTY-TWO], Iran is expected to respond to the incentive package. If Iran refuses the offer, wed anticipate this to be bullish for crude next week," said Bill O'Grady, an AG Edwards analyst.
Iran is due THIS WEEK to give its reply to the UN Security Council concerning whether or not it will cease its program of uranium enrichment. Konstantin Kosachev (KK), Chairman of the Russian State Duma's International Affairs Committee, explains to Nargiz Asadova (NA) what sanctions will be introduced if Iran refuses and what Russia's position on the issue will be.
Chavez, whose country is the world's No. 5 oil exporter, reiterated that he will finalize a deal to buy oil tankers from China and that Venezuela will be able to manufacture parts for the ships and perform maintenance at its own shipyards. He also plans a deal to buy 12 Chinese-made oil drills and to assemble 12 more in Venezuela at a new, jointly owned factory.

CONFUSION about SCO was the title of one of my messages.

mikal@Goldilox#1468008/20/06; 21:36:06

Thanks. Regarding web sites, I'm sure you know
those are just the tip of the iceberg. And speaking of icebergs, I'm not a bit surprised they're
replicating somewhat more than linearly!

Goldiloxalt-energy sites#1468018/20/06; 21:58:44

@ nikal,

Those three sites are the "primers", as I am always a bit leery to drop the "heavier" material on anyone until I know they have the background to grok it.

Suffice to say that these three serve as great spring boards for the interested to start their investigations.

GoldiloxGold investors take fright in wild Central Asia#1468028/20/06; 23:04:01


MOSCOW: As US gold giant Newmont battles to save its operation in the deserts of western Uzbekistan, instability and threats against personnel are making much of Central Asia a no-go area for normally hardnosed prospectors.

Uzbek authorities said this week they had launched bankruptcy proceedings against a joint venture between the state and Newmont Mining, more than a decade after the 1995 launch of the project was hailed as a landmark in US cooperation with the former Soviet nation.

"This has shocked a lot of people, this is a really serious dent in Uzbekistan's reputation as an investment destination, an informed observer said, adding that he doubted Uzbek authorities would be willing to put in funds for the project to realise its full potential . . .

But this June, the government annulled tax privileges for a handful of major foreign investors, including Newmont, and a court subsequently ordered the joint venture to pay 48 million dollars (38 million euros) in back taxes. In a development reminiscent of the dismemberment of Russia's Yukos oil company, Newmont said this month that Uzbek authorities had launched criminal investigations against staff of the venture, prompting expatriate staff to flee the country. . .

"It makes investment in Uzbekistan, which was already becoming more and more difficult for foreign companies, prohibitive," the informed observer said.

The action against Newmont comes amid a clampdown on Western investors resulting from deteriorating political relations between Tashkent and the West.

An Uzbek government source said this week that another foreign metals investor, London-based Oxus Gold, had been excluded from developing the Khandiza reserve in the southeast of the country, which contains zinc, silver, copper and lead.

Media reports said that development rights would be awarded to a local venture rather than Oxus' subsidiary Marakand Minerals, which had been exploring the reserve.

Meanwhile, Oxus is among a number of foreign metals companies that have run into trouble in Uzbekistan's neighbour Kyrgyzstan, where gold represents a major chunk of the national economy.

Last month Oxus said that its representative in Kyrgyzstan, Sean Daley, had been shot and injured in an assassination attempt in the Kyrgyz capital while he was negotiating for the return of the licence to the Jerooy gold project in the northwest of the country.

Kyrgyz authorities stripped Oxus of the licence in 2004, a decision Oxus is still hopeful of reversing, a company spokesman in London said.

Meanwhile, a parliamentary commission investigating the business activities of former president Askar Akayev, who was ousted last year, continues to call for a review of the Akayev-era privatisation of the Canadian-owned Kumtor goldmine, which accounts for up to 10 percent of Kyrgyz gross domestic product.

For Rob Edwards, a metals analyst at Moscow-based Renaissance Capital, the cumulative result of such problems is that foreign investors are likely to steer clear of much of Central Asia's gold reserves, with the exception of those in Kazakhstan, where authorities have taken a longer view.

"Gold deposits are not going to realise their full potential because once an area gets tarnished it's very difficult to get capital," he said.

"Short-term thinking is endemic in the former Soviet states," he said, adding in Central Asia, the locals don't understand how projects get financed, how capital markets work.


Globalism receives another hearty blow in the former Soviet republics, as the battles for "resource ownership" that plagues South America are also ratcheting up in Asia.

GoldiloxKatrina: Disaster Profiteers Pocket Millions in Deals#1468038/20/06; 23:24:08


Federal authorities have issued $9.69bn in Katrina reconstruction contracts. The Department of Homeland Security's inspector general, Richard Skinner, told Congress in April: "The federal government, in particular Fema, has received widespread criticism for a slow and ineffective response. Unfortunately, much of the criticism is warranted."

Golden Pyramid: How dust and debris turns into dollars

The report claims many large companies established 'contracting pyramids', with each layer skimming money. It highlighted the $500m contract awarded to Ashbritt to remove debris, which worked out at $23 per cubic metre of rubbish moved. In turn, it hired C&B Enterprises to do the work for $9 per cubic metre, which in turn hired Amlee Transportation which was paid $8 per cubic metre. Amlee hired another company for $7 a cubic metre. Finally, the work was done at $3 per cubic metre by a haulier from New Jersey.


Somewhat OT, but it demonstrates one way the globalists and bigger government advocates add piles of cost to the budget and trade deficits.

American labor is touted as "unable to compete" in the global marketplace. Well, with 85% middleman overhead added to the New Orleans reconstruction contracts, it is easy to see why. On top of that, many workers are claiming that they often don't get paid at all.

GoldiloxGold Chart#1468048/20/06; 23:28:27

Classic reverse Head and Shoulders in Spot Gold last Thursday and Friday.
The Invisible HandOil price rise fuels leap in US arms sales#1468058/20/06; 23:39:23,,13129-2321759,00.html

THE WAR on Terror and windfalls from rising oil prices have helped to push American military sales to foreign governments to their highest level since the first Gulf War.
An investigation by "The Times" has found that the US Congress was notified of sales worth $12.9 billion (£6.8 billion) in July — the largest monthly total since the beginning of the Bush Administration
US government officials and leading defence analysts have told "The Times" that among the many factors influencing foreign military sales (FMS) has been the Pentagon's desire to cement relations with foreign governments in order to bolster support for the War on Terror.
Other factors behind the leap in arms sales include the rising price of oil, which has given oil-producing nations more money to spend.


What sales will increase when gold will start rising?
Oil for gold, said you?

The Invisible HandWait until it will be denied!#1468068/21/06; 01:15:40

"As Rome passed away, so, the West is passing away, from the same causes and in much the same way. What the Danube and Rhine were to Rome, the Rio Grande and Mediterranean are to America and Europe, the frontiers of a civilization no longer defended."

TopazDeliveries.#1468078/21/06; 01:20:19

A slight flurry of activity has seen a new tack-tick emerge today tho I fear it's a storm in a Teacup ...for the rest of this week anyway ...THEN,, the fun should begin anew with Silver leading the onslaught.
The Invisible HandWho's paranoid? Bush or me? August 22 or 31?#1468088/21/06; 02:33:14
The UN Security Council passed a resolution at the end of July demanding that Iran halt its uranium-enrichment efforts by AUGUST THIRTY-ONE or face possible international sanctions.
Could AUGUST TWENTY-TWO, 2006, be the start of global nuclear chaos? That is the deadline US President Bush has given Iran to halt its nuclear build up. That is also the date Islamics celebrate the journey of Mohammed to Jerusalem and his ascension into heaven.
LONDON, August 21 (IranMania)
US President George W. Bush's administration also recalled that Iran has until AUGUST THIRTY-ONE to respond to a UN Security Council demand that it suspend uranium enrichment and warned that failure to comply could swiftly lead to sanctions.
LONDON, August 21 (IranMania)
Tehran is due to respond on AUGUST TWENTY-TWO to a package of incentives offered by major powers in return for a freeze in enrichment, amid Western fears its nuclear programme is a cover for efforts to build atomic weapons.
The Security Council has also given Iran until AUGUST THIRTY-ONE to halt enrichment and reprocessing activities or face possible sanctions
Last Updated: Sunday, TWENTY AUGUST 2006, 11:45 GMT 12:45 UK
Iran has said it will not suspend uranium enrichment, a key demand of an international proposal aimed at resolving the nuclear programme row.
It comes TWO DAYS BEFORE IRAN WAS DUE TO RESPOND to a proposal by Russia, China, France, Britain, Germany and the US aimed at resolving the nuclear row.
The UN Security Council passed a resolution at the end of July demanding that Iran halt its uranium-enrichment efforts by AUGUST THIRTY-ONE or face possible international sanctions.


Or does Iran have to say by tomorrow whether it will halt its nuclear programme by August 31?
Why could Iran then not halt the programme nine days earlier?
What assurances does St. The-International-Community have that if Iran says tomorrow it will halt by August 31 that Iran will effectively halt the programme by August 31?

To repeat:
It seems to me that Iran is deriving great pleasure from the current situation.

SundeckMK's gold-forum concerns - a few apolitical comments#1468098/21/06; 05:29:39

Ref MK #146695

1. Sir MK says:"It is my opinion and has been for a very long time that the quality of posting on the internet in general has declined."

Perhaps you are right, if not universally so with respect to all forums. I suspect that the availability, via the rise of the internet, of discussion forums on subjects like "gold", tapped a latent pool of talent, experience, knowledge and enthusiasm that has been drained over a few years and is now struggling to "maintain the flow". Perhaps the rich deposits of "golden fossil fuel" reserves have been expended and we are now working more difficult ore. (This all happened at a turning point in gold's fortunes as well...and to some extent the two are connected.)

That is not to say that good and relevant contributions cannot still be made on forums like this one, it is just that much has already been exposed and presented...often many times over. Sometimes, knowledgeable people depart, having made and remade their points many times over.

Repetition is not by itself a bad thing, since it is an important way by which the brain learns. But it is unrealistic to expect that our teachers continue teaching "the fundamentals" ad infinitum.

2. MK says: "How many of these [new] registrations translate to a post? Not many."

Mmmm...bearing in mind the wealth of knowledge and opinion about gold that has appeared here over the years, it is probably not so surprising that many people are hesitant, or feel somewhat daunted, in contributing ... or prepared to wait a long time for a suitable entry point. Most people are wary of being seen to ask "dumb" questions, even if they aren't physically "seen" in a "virtual forum" like this. Similarly, a person new to gold, may be wary about contributing to discussion or offering comments. This forum is similar in this regard to conferences and "physical forums" in general, where most of the talking is done by a minority of the delegates. In real forums, as opposed to virtual forums, a competent chairman has a duty to dig contributions out of the silent majority...similar, perhaps, to the "Gold Contests" at this site. I haven't done a study, but it might be intesting to determine how many new contributors continue to submit posts following their initial entry into a gold contest.

3. MK says: "there are all sorts of levels of understanding about gold and its economic, financial AND POLITICAL manifestations."

The problem with gold is that it tends to touch all things, largely because of its pervasive role throughout history as both the tangible and symbolic representation of "wealth" and "privilege" and "power".

I am reminded of the advice that is sometimes dished out as a guide to "good etiquette" for dinner-parties and similar social gatherings: "Talk about anything except sex, religion and politics." The problem with this advice, of course, is that these are three of the most interesting subjects around! We are all products of lust; we live in a world politicised at all levels; and only a particularly unobservant person could honestly dissociate religion from the history and actuality of the present human condition.

Gold is closely intertwined with all of these three "verboten subjects", so it is perhaps not surprising that they all crop up on the forum from time to time. Of the three, politics is the "least verboten" and that is probably why it appears here the most. Religion is next, but never far beneath the surface. Poor old sex runs a dismal worries, perhaps it gets sufficient "exposure" at Hollywood and Bollywood and other creators of fantasy and transient pleasure....not to mention elsewhere on the internet.

4. For my part, I am often pleased and surprised by the general quality and objectivity of some posts. True, many are partisan, but that is hardly surprising as even the best scientists and journalists, among other professions, struggle to stay non-partisan...what hope for the hoi polloi? And times are such that people are developing strong views about the paths our "leaders" have lead us down...I suspect opinions will become more strident in the years ahead. Some of this "strident anxiety" spills over into discussion wherever there is a tangential connection to gold.

In particular, the global petroleum situation, linked here to gold since the very beginning of the forum, is only becoming more tense and politicised with time. Unfortunately, a large part of the petroleum "crisis" is intertwined with religious and political schisms that run back for nearly two thousand years and which show no signs of healing. In fact, there appears to be ongoing attempts to press unwilling factions into inappropriate molds.

5. The answers? Wish I knew.

(a) Warn and delete seems to have been effective in the past.
(b) Contests...everyone loves the contests!
(c) Steer the discussion...yes, I think that can help.
(d) Reiterate the goals of the forum...alas, this has to be done again and again and again and...
(e) Revisit the archives...lately there have been some welcome reappearances of old posts.
(f) Be prepared for low relevant forum activity at certain times...for example, it has been three months since the price of gold suffered its major correction from above $700 to the "summer doldrums". A rising gold price provides direction for participants and confirmation of many of the old fundamentals discussed years ago.

Enough said...FWIW


The Invisible HandTwo of my lunatic colleagues#1468108/21/06; 06:41:59

First a lunatic
who realises that the European central banks have not sold their quota's which the Washington Agreement allowed them to sell
but who does not wonder why.
European banks may miss gold target
Europe's central banks are expected to sell only about three-quarters of the full quota of 500 tonnes of gold in the second year of an agreement that regulates bullion sales, analysts said.
The market has discounted further sales, on top of some 340 tonnes already sold, in the remaining six weeks until the second year runs out end September, but any sudden offload might push prices sharply lower, they said.
"History is that they always sold the limit, however there has been no indication of any large sales," said Matthew Turner, analyst at precious metals consultancy Virtual Metals.

Next a lunatic who
after submitting that there was a huge gold sector pump into the weekend that put the oil manipulators to shame as very low volume pumping followed very high volume selling that exhausted itself by mid-day. The fact of the matter is that gold did close below the 50 dma of $619 for the second day in a row against virtually no dollar movement.
reminds us that the Washington Agreement (WA) is expiring on September 26

then goes to discuss Gold ETFs
Gold ETF is a recent enterprise of 5-6 major countries who have devised a system of what is called ‘gold exchange traded funds’.
Instead of actually trading or buying and selling real gold, these funds, essentially administered by brokers, are basically an investment in certificates backed by gold.

The lunatic gives the example of the Canadian miner WDO, who just put out tepid earnings yesterday as 25% of the gold they produced went unsold for the quarter. Last year, demand was such that they had to draw 3,700 ounces out of reserves to cover sales of 15,800 ounces. This year, there was no trouble covering orders for just 8,700 ounces.

The lunatic forgets that if the WA expires in a month, it could be prolonged.

The lunatic intuitively sees what the power is of gold-ETFs. Quite a lot of gold that is under contract and with which the lunatic can then play.

This is the ultimate purpose of all kinds of ETFs. To use them as derivative number N on a derivative in order to have the price of the underlying value manipulated by the AngloAmerican financial industry complex in New York, London and … Chicago.

Meanwhile Israel is being urged to give up Golan Heights
Israel should resume negotiations
with Syria and, in exchange for peace, give up the Golan Heights, an Israeli cabinet minister has said.

Does the sacrosanct We-the-People-of-the-International-Community want Israel to pay behind the scenes for its actions in Lebanon?

All this directly and indirectly influences the price of oil (POO) because tension can increase or decrease.

The more Israel is pressurised, the more it will want to provoke an attack on Iran.

It is therefore of the utmost importance for both parties to keep world opinion as long as possible on their side.

The Invisible HandEU Energy Policy ?#1468118/21/06; 07:04:24

In Short:
An agreement on the 1994 Energy Charter Treaty could take place at the EU-Russia energy conference in October, according to EU energy Commissioner Andris Piebalgs.

In Short:
After the takeover squabbles and fierce debates surrounding NATIONAL SOVEREIGNTY ISSUES, the EU is now facing a number of key decisions that will reveal its true resolve in shaping a common energy policy.
EU heads of state and government agreed on the basic principles of a future 'ENERGY POLICY FOR EUROPE' at the spring summit in March (EurActiv 24 March 2006). Discussions were based on suggestions presented earlier by the Commission in an Energy Green Paper (EurActiv 9 March 2006). They include completing the opening of European gas and electricity markets and stepping up relations with major suppliers such as Russia and OPEC. Others relate to further boosting renewable energies, energy efficiency, and research on low-carbon technologies.
But EU leaders had other problems on their minds at the summit with an ongoing wave of cross-border takeover attempts in the energy sector which they viewed as a threat to their national interest
Competition commissioner Neelie Kroes later criticised what she described as "the outdated political rhetoric of ECONOMIC PATRIOTISM IN EUROPE". "We should be vigilant - because if a protectionist trend continues or intensifies, one thing is certain: all of us here in Europe will suffer," she said.


EU countries depend heavily on Russian gas supplies, and any steps taken by Gazprom to expand its business evoke their concern.
The concern of the EU, which has so far not adopted a clear-cut common energy policy, is rooted not so much in the details of the Moscow memo, as in their assumptions about the role which the Kremlin assigns to Algeria in its new energy-based foreign policy.
European observers are particularly concerned about the prospects of a RUSSIAN-ALGERIAN COORDINATED PRICING POLICY in Europe. Judging by the European reaction, Brussels sees a way out in a consumer cartel patterned after OPEC-IEA cooperation in the oil market. In this situation, it is important to understand the motives behind Gazprom's active international expansion. Do the two companies have normal business relations, or are they thinking of forming a cartel?
Gazprom is already working on pipeline and prospecting projects in Latin America, Asia, and Africa.
In Europe, Gazprom pursues an active policy, but it is by no means aggressive.
The oil market bears out that a prevalence of spot contracts encourages sellers to form price cartels. Pressure from gas consumers is pushing gas producers and sellers towards the idea of a gas OPEC. It is only natural that Moscow has recently received proposals to coordinate prices and trade policy for gas supplies from IRAN, ALGERIA, and LIBYA, not to mention post-Soviet republics. For the time being, the Russian president is clearly distancing himself from the gas concern idea, as was clear during the SCO (SHANGHAI COOPERATION ORGANIZATION) summit in Shanghai. But if the interests of gas producers continue to be ignored, and Gazprom is subjected to more pressure, Moscow may become more interested in this idea.


Iran again being considered a full member of the SCO.

The Invisible HandEU Drug Policy#1468128/21/06; 08:17:40,,1855157,00.html

The Foreign Office today confirmed it was investigating claims that British military equipment SENT TO IRAN in the fight against INTERNATIONAL DRUG SMUGGLING had ended up in the hands of HIZBULLAH fighters in LEBANON
Repeal all drug laws, NOW!
Repeal the Fed also!
Give anarchy a chance!
Or do you want to limit freedom to gold, Freegold?

GoldiloxHousing crash puts sellers in debt crisis#1468138/21/06; 08:24:44


A THREE-BEDROOM brick-veneer house in St Clair sold for just $260,000 at the weekend - down about 42 per cent from its last sale at $450,000 in 2003 in a further sign of the depressed state of the Sydney property market.

Only one person bid on the house in the city's west. The mortgagee sale was forced after the owners could not meet the interest payments on the $405,000 they borrowed to buy the house at the peak of the market.

Auction clearance rates are hovering around 48 per cent since the recent interest rate rise, but plummeting property prices have meant many vendors are confronting negative equity, where they owe more on the property than it is worth.

The Herald checked 16 properties in south-western and western suburbs listed at the weekend and found 60 per cent had prices or had attracted offers at a discount to their last sale price.

At the St Clair auction the buyer was an investor who will spend about $40,000 on essential repairs before leasing it at about $270 a week, said its L.J. Hooker St Marys selling agent, Michael Beatty.

Increasing petrol prices appear to be compounding the impact of repeated interest rate rises on properties in Sydney's outlying suburbs by driving prices down.


Coming soon to properties near you?

The Invisible HandThere it is!#1468148/21/06; 08:26:09


The Venezuelan presidential election campaign is taking on more and more extreme forms as the December election date nears. Venezuelan President Hugo Chavez has activated the anti-American component in his effort to remain in office. He has announced the exposure of four American spies, labeled his opposition "lackey's of Washington," and announced the plans for his visit to Beijing, which begins on Tuesday and should result in the diversion of most of Venezuelan oil from the United States to China.

The Invisible HandCrazy European Union#1468158/21/06; 08:35:31


Swedish Prime Minister Goran Persson said Friday laying the gas pipeline across the floor of the Baltic Sea threatens ecology. Persson pointed out it may hit the off-shore disposals of toxic substances and advocated lifting the route to the surface. Even if Mr Persson has some reason, the timing of his statement prompts to suppose that the PM wants just to boost popularity before parliamentary elections in Sweden.
According to the project, the North European Gas Pipeline will run for around 1,200km and connect shores of Russia and Germany, ensuring direct supplies of Russia's gas to Western Europe.


And me trying to find out some posts ago what was the EU's Energy Charter.

GoldiloxD-Day#1468168/21/06; 09:16:44

With tomorrow heralding both the visit of Chavez to China, and Bush's "Decision Day" for Iran, it could be a day of market fireworks, if not elsewhere, as well. A few online harbingers have suggested the beginning of "surgical" strikes by either US or Israeli forces.

Eyes Wide Open!

The Invisible HandTwo FT and one Barron's preview#1468178/21/06; 09:18:37

By Wolfgang Munchau

Could the eurozone's astonishingly robust economic performance during the second quarter be for real? France is now the eurozone's growth locomotive. Its economy expanded at an annualised rate of between 4.5 per cent and 4.9 per cent. Germany's performance is not as strong but in some respects more astonishing. With an annualised growth rate of 3.6 per cent, it would be wrong to classify Germany as the "sick man of Europe" – an honorary title it inherited from the UK. One economist has been talking about a "Goldilocks" scenario for the eurozone – neither too hot, nor too cold. Is this optimism justified?

By Peter Costello

The world has changed dramatically in the 60 years since the International Monetary Fund was formed. The emergence of rapidly growing economies in Asia, Latin America and elsewhere has changed the distribution of the global economy. Yet fund governance arrangements have not kept pace. They reflect the economic structure of the postwar period rather than that of the 21st century.
The failure to reform governance in recent years is undermining the authority and effectiveness of the IMF.


FOREIGN EXCHANGE IS THE TITAN OF THE GLOBAL capital markets. An average of about $2 trillion changes hands every day. To put this in perspective, in less than two weeks, the turnover in this market covers a year's worth of the world's trade. In a little more than a month, enough currencies are exchanged to buy all the goods and services the world produces in 12 months.
The U.S. dollar is a linchpin of the foreign-exchange market, and its ups and downs are thought to have a crucial impact on global trade and economic growth. Some traders are betting that the greenback is poised for an imminent slide.

I completed the final sentence of the Barron's preview by entering "the buck stops where betting that" into

And even though there will be no recovery in euroland, the euro would not slide thanks to the gold-reserves of the ECB? We'll see!

Why does the title of the second FT column refer to the IMF as the GLOBAL Monetary Fund?

ThoreaulyThe Plan#1468188/21/06; 09:18:55

It has been said that history repeats itself first as tragedy, then as farce. Thus do we witness first the horror of the Soviet Union, only to have its evil creep into the fabric of life here in the US and then flower -- like the kind that squirts water on a clown's costume -- into "The Plan" by Congressman Rham Emanuel and columnist Bruce Reed. Calling first for "a new social contract -- universal citizen service, universal college access, universal retirement savings, and universal children's health care -- that makes clear what you can do for your country and what your country can do for you," it then calls for "a return to fiscal responsibility."

I'm not making this up. On the contrary, this is what qualifies as serious thinking in Moscow-on-the-Potomac, never mind that our existing welfare-warfare colossus is already making it abundantly clear, not what our country can do FOR us, but what it can do TO us, creating so many trillions of dollars of debt in the process that the only way the money can ever be repaid will be to inflate it away, precisely as the Fed is doing.

P.S. For the record, I am bipartisan in my contempt for the political process in this country and make no apologies for despising my government -- regardless of who is running it -- so inimical to freedom and thus to the social enterprise has it become. If saying so is sufficient to have this post removed, so be it. But insofar as this forum is about gold, this to me is the ultimate reason to own it, there being no surer way to protect oneself from the colossal failure to come.

The Invisible HandHere it is (again)!#1468198/21/06; 09:34:42


Exploitation Week: The August 22 Iranian Kickoff
Why August 22 May Come & Go With Little More Than Customary Iranian Double Talk

Iran's response on August 22 can be expected to be a Muddy Waters approach, including a refusal to cease enrichment couched within calls for negotiation and diplomatic talks. Little if any change in position from any point selected at random over the past three years should be expected. In the week that will follow, Iran will be gauging the American and European response, looking to exploit cracks and weaknesses ahead of the August 31 UNSC deadline.
The Security Council handed Iran this exploitation buffer by naming their firm deadline only after Ahmadinejad announced his own August 22 intentions. For those suspicious of nefarious action by Iran on August 22, perhaps the date on the calendar to circle for vigilance is August 31

Speculation Rages About Iran's Plans for August 22
By Patrick Goodenough International Editor
August 21, 2006

( - August 22 could usher in an apocalyptic period in the Middle East thanks to some belligerent action on the part of the Iranian regime. Or maybe not.

As Tuesday approaches, the Internet is running hot with speculation about what Tuesday may bring, ranging from a new refusal by Iran to shut down its controversial uranium-enrichment activities to an attack -- even a nuclear attack -- against Israel.

The frenzy was prompted by Iranian President Mahmoud Ahmadinejad's announcement, more than a month ago, that his government would deliver its response on August 22 to an international carrot-and-stick proposal aimed at defusing the standoff over its nuclear activities.

THE DATE WAS CHOSEN BY TEHRAN AND HAD NO OBVIOUS RELEVANCE IN INTERNATIONAL DIPLOMACY. The only formal deadline the international community is currently awaiting with regard to Iran is August 31 -- the date set by the U.N. Security Council for Iran to suspend uranium enrichment or face the possibility of sanctions.

Some commentators have downplayed the importance of August 22, arguing that the decision was simply one of convenience, akin to saying "we'll respond by the end of the month." August 22 marks the end of the Persian solar month of Mordad.

But others are less sanguine, noting that the date is significant in Islam, for several reasons.

GoldiloxYesterday's Aristocracy#1468208/21/06; 09:39:24

@ Thoreauly,

George Ure put it well this morning.


Senatrix Clinton shows better than the others mentioned in a new poll by Time. The only issues I have with the poll are 1) they didn't ask me [her ratings would be lower] and 2) why the hell do national media keep rerunning the same aristocrats? Haven't they figured out perhaps 85% of the public wants new faces, fresh blood, and creative solutions? No? Oh crap...

I also liked McCanney's idea of "pushing the Constitutional RESET button." Go back to the Constitution, dump ALL incumbents, and start over from there.

Drastic probelms call for drastic solutions.

YGMBetting on Gold#1468218/21/06; 10:13:27

...@ $1,000.00 p/oz
The Invisible HandAnother lunatic#1468228/21/06; 10:16:08

There is

Here's a lunatic who's almost getting it. "Real Money Betting on Gold at $1,000’", says his title.

Isn't it strange that he talks about "obscure" people (gold-giants)?
And that he is probably doing this without really wanting to associate it with gold?

He understands that the dollar-International Monetary and Financial System (dollar-IMFS) can only survive by inflating itself.

Apparently merchant bank UBS recently noted a sudden surge in demand for gold options cashable at more than $1,000 an ounce expiring in December. Some "buyers" - read savvy hedge fund hyper gamblers - were even buying options dated late-2007 with a $2,500 strike.
These are extreme bets taken in the same way that ordinary people take lottery tickets. They cost little, but in the unlikely event that they pay off, they pay off big. But the interesting thing is not so much the chance of the bet paying off but the fact that they are being taken at all. So what is the significance of the fact of real money, rather than just the say-so of the usual gold-bug nutters, being placed on a gold price of more than $1000 an ounce?
What lies behind the bet is a huge international gamble that the dollar is about to fall out of bed rather dramatically. And the reason it would do so has very little to do with the U.S. and rather a lot to do with the attitudes of OBSCURE PEOPLE in the amazingly closed world of the Japanese and Chinese financial authorities.


Sorry if this double post.
YGM (8/21/06; 10:13:27MT - msg#: 146821)
Betting on Gold
...@ $1,000.00 p/oz

The Invisible HandThoreauly, please don't restrain yourself!#1468238/21/06; 10:49:49

You said:
If saying so is sufficient to have this post removed, so be it. But insofar as this forum is about gold, this to me is the ultimate reason to own it, there being no surer way to protect oneself from the colossal failure to come.

What's the the problem, man?

Rawls tried that 30 years ago also.

If you read Spanish, here's a critique of Rawls.
C’est la faute à Rawls,
contrat social et solidarité entre les generations.

As another lunatic said today on Another forum, advocates of Truth and Freedom have always to remain vigilant.

This thread is about whether there is a PERENNIAL PHILOSOPHY.
insuring for it the stability, universality and inexhaustibility
which makes it a truly PERENNIAL PHILOSOPHY
The principles elaborated, refined and organised by Aristotle were
destined to become the foundations of what is called the PERENNIAL PHILOSOPHY,
the enduring philosophy, the one philosophy which, RENEWING ITSELF OVER
AND OVER AGAIN through all the vicissitudes of time and history offers to each new generation the unchanging key to the mysteries of reality.
If Sullivan says that the perennial philosophy has to renew itself over and over again through all the vicissitudes of time and history, does he then mean that it has to answer again and again to the […]the imbeciles who [want to reinvent to Rawlsian wheel]?

Yes, we have to continuously remain vigilant for the imbeciles who cannot think and there utter nonsense.
Back luck - but that's life.

The Invisible HandThoreauly, please don't restrain yourself!#1468248/21/06; 10:49:52

You said:
If saying so is sufficient to have this post removed, so be it. But insofar as this forum is about gold, this to me is the ultimate reason to own it, there being no surer way to protect oneself from the colossal failure to come.

What's the the problem, man?

Rawls tried that 30 years ago also.

If you read Spanish, here's a critique of Rawls.
C’est la faute à Rawls,
contrat social et solidarité entre les generations.

As another lunatic said today on Another forum, advocates of Truth and Freedom have always to remain vigilant.

This thread is about whether there is a PERENNIAL PHILOSOPHY.
insuring for it the stability, universality and inexhaustibility
which makes it a truly PERENNIAL PHILOSOPHY
The principles elaborated, refined and organised by Aristotle were
destined to become the foundations of what is called the PERENNIAL PHILOSOPHY,
the enduring philosophy, the one philosophy which, RENEWING ITSELF OVER
AND OVER AGAIN through all the vicissitudes of time and history offers to each new generation the unchanging key to the mysteries of reality.
If Sullivan says that the perennial philosophy has to renew itself over and over again through all the vicissitudes of time and history, does he then mean that it has to answer again and again to the […]the imbeciles who [want to reinvent to Rawlsian wheel]?

Yes, we have to continuously remain vigilant for the imbeciles who cannot think and there utter nonsense.
Back luck - but that's life.

mikal"Go for gold"#1468258/21/06; 11:58:05

Why the Weak Dollar Means You Should Buy Into Gold - Moneyweek | MSN Money | August 21, 2006
Recommending 10% of a portfolio to gold may not
be an exciting way to close an eye-opening commentary,
but we've grown so accustomed to it by now that it's
like the wind-borne smell preceding a spring rain.
This link's another primer some can find useful.

mikal"Gold you can hold"#1468268/21/06; 12:17:46

Gold Coins Glint in Investor's Eye
Price rise sees surge in bullion trading
Bina Brown | Monday, August 21, 2006
(CNN) -- Snippit: "There is gold you can hold and gold you can fold. Which one an investor chooses will likely come down to individual preference as well as the price outlook.
The recent surge in the price of gold has seen investors flocking to both types.
The Perth Mint, an Australian manufacturer of gold bullion coins and operator of the world's only government guaranteed gold depository program, has seen gold bullion-related trading more than double in the past year.
It is a similar story in the United States, where the World Gold Council says the sale of coins and small bars increased by 41 per cent in the first quarter of 2006.
Veronica Maguire, general manager of minted products at the Perth Mint, says that as the price of gold has increased so has global demand for gold products, including coins and bars.
"Some people like to have something they can physically hold, such as a bar or a coin. Others can keep the metal in allocated form or deposit form," she says.
One benefit of a coin is the government guarantee over its weight and purity. That means that even if the bottom falls out of the gold price, the coin will still have some nominal value."

Interesting coverage that avoids solid investment advice
and fundamentals but manages to attractively
clarify and classify most physical gold investment options.
Then the article predictably deteriorates into
blunt subjectivity on the subject of gold bars and
Perth Mint certificates.

968Words of a strong leader behind a failing currency-system...#1468278/21/06; 13:04:45

My apologies for not being more gold-related, but this is fabulous press conference from the leader of the civilised world.
968Sorry for the typos - correction#1468288/21/06; 13:06:27

... but this is a fabulous press conference from the leader of the civilized world.
GOLD FINGERWhat to give me??#1468298/21/06; 16:20:38

I am asked what I would like for gifts....I say gold coins and point them to this web site......

Thanks for the great product line!!


The website is will never be unpopular~

TopazBonds.#1468308/21/06; 16:24:35

...and so it goes, into the abyss for the umpteenth time.
Gold and Silver caught a bid today to my surprise, we should be seeing weakness into the Monthly roll-over. A few of the smarties are jumping the gun on the basis of the curve.
Ben will look to the Market doing the Fed's dirty work here and will co-incide their rate-cutting with the seasonal Gold/Silver grab imo.
Gotta blame someone I 'spose.

The Invisible HandThe dollar has lost its safe haven status#1468318/21/06; 20:02:04



LONDON, August 22 (IranMania) - EU foreign policy chief Javier Solana and top Iranian nuclear negotiator Ali Larijani are open to "further contacts" about Tehran's nuclear ambitions, Solana said, according to AFP.
Tehran is due to respond on August 22 to a package of incentives offered by major powers in return for a freeze in enrichment, amid Western fears its nuclear programme is a cover for efforts to build atomic weapons.
The Security Council has also given Iran until August 31 to halt enrichment and reprocessing activities or face possible sanctions
Iran has suggested it will not give a simple "Yes" or "No" to the package but rather a "multi-dimensional" reply.
Speaking on the BBC a few days ago, Dan Gillerman, Israel's ambassador to the UN, said: "If the international community does not disarm Hezbollah, we will do it." This does not suggest that Israel has yet digested the lessons of the war. It must also be assumed that Israel and its American ally will not easily give up their attempts to disrupt or end Iran's nuclear programme by all possible means. The coming weeks and months are unlikely to be peaceful.
WASHINGTON (Reuters) - President George W. Bush voiced concern on Monday over talk in the United States of a civil war in Iraq, prompting speculation he may be coming around to the idea and considering a future exit strategy.
Bush's administration has insisted for months that Iraq is not sliding into civil war despite sectarian violence that has killed hundreds of Iraqis.
Getting closer to China is part of a strategic view to


now that Venezuela is pursuing a position in the United Nations (UN) Security Council and tries to broaden the hydrocarbons market

What if all occupiers left Iraq and in exchange for that Iran stopped its nuclear programme?

Saddam has been jailed and there are no WMD in Iraq.

A war against Iran and/or Iraq cannot be financed. Moreover, it will result in a higher price of oil (POO)

A nuclear-free Iran would therefore be very welcome together with a decreasing POO thanks to decreasing tension.

But perhaps some parties don't want peace in the oil desert.

Most observers are forgetting that the absolute superiority of Israel in the Middle East serves to keep the ailing petro-dollar from dying.

This would never have been possible if there had been peace in the Middle East.

If there had been peace, then the petro-dollar would have disappeared already in 1971 and Freegold would have been the world's reserve-standard.

Concerning the price of gold (POG), it is therefore a world on its head. The more war tension there is, the more the illusion of the eternal petro-dollar. This illusion in its turn can only be kept alive by continuing to freeze the POG.

A nuclear-free Iran would render the paper petro-dollar obsolete and would have no use for POG containment.

Everything else our masters want us to believe is bull excrement.

The Invisible Hand (8/21/06; 10:16:08MT - msg#: 146822)
Another lunatic
What lies behind the bet is a huge international gamble that the dollar is about to fall out of bed rather dramatically. And the reason it would do so has very little to do with the U.S. and rather a lot to do with the attitudes of OBSCURE PEOPLE in the amazingly closed world of the Japanese and Chinese financial authorities.

Perhaps those so-called "OBSCURE INDIVIDUALS" – Japanese and Chinese – are anticipating that everybody is seeing that Emperor petro-dollar has no clothes.

It's been 35 years that there is increasing tension in the Middle East.

Today this results in a flight "from" the dollar, instead of "into" the dollar

The dollar has thus lost its SAFE HAVEN status.

It's only a matter of days (?) before it will lose its RESERVE STATUS.

It is then of the utmost urgency for our masters to keep gold out of its future RESERVE context.

Euro-Central Banks seem however to have Another view as they sold only three-quarters of the full quota of 500 tonnes of gold which the Washington Agreement allowed to them to sell.

Armageddon (8/20/06; 01:23:37MT - msg#: 146778)
Europe's central banks are expected to sell only about three-quarters of the full quota of 500 tonnes of gold in the second year of an agreement that regulates bullion sales, analysts said.

The Invisible HandWhat if#1468328/21/06; 20:04:05


mikalTen little tips#1468338/21/06; 20:13:00

Ten Reasons We're Past the Tipping Point on Economic Disaster | MarketWatch | Paul B. Farrell | August 21
10 reminders that all is not quite what it seems.

White Hills968#1468348/21/06; 20:46:54

You should apologize. What trash! White Hills
ArmageddonGold Price supression at $625 today?#1468358/21/06; 20:52:18

After looking at todays gold chart on Kitco it seems that the Gold Cartel is trying to keep the price of gold around $625 during normal trading hours. The chart line seemed to me to be continuously hitting that $625 boundary like a ceiling, not overshooting by 2 or 3 dollars and then correcting below to $620 or so then shooting back up like what I have seen the past year. The graph looked like Bart Simpson's haircut. Also remember that the central banks have at least 160 tons of gold they can sell on the open market up until Sept 26.

I would be happy to hear any other opinions also.

White HillsArmageddon#1468368/21/06; 21:23:54

I agree with you that the gold cartel, a good as any discription of those manipulating the POG, is trying to keep the POG in a certain trading range. No big drops no big ups as volatility is to be avoided. As for the central banks selling gold, I think that is all smoke and mirrors. If they do announce sales they never identify the buyers and nobody knows for sure if the gold even changes hands. Indeed the POG is a perception only as it is established in a paper market where gold is sold by contract, paper, by people who don't have the gold to people that can't afford to buy it. True there is the illusion that there is gold being traded but it is just a casino where bets are made and mostly settled in paper currency. You will never see the true value of physical gold until the paper markets collapse as predicted by Another, FOA and others. My opinion. White Hills
Ten Bearsmuckraking#1468378/21/06; 21:31:29

Walter Winchell, HL Mencken, and Henry Hazlitt, did a bit of muckracking in their day,but most of us in that time read and listened anyway. In that same tradition, Bob Chapman's latest commentary;
GoldendomeThe dollar still reigns supreme and is the safe haven currency.#1468388/21/06; 22:15:06

Invisible Hand: Enjoy the insights from many of your posts, but Can't say as I can agree that the dollar may only have days to enjoy it's world reserve status...And, during the last period of tension (Hezbolah vs. Israel) wasn't gold going down and the dollar up? Sort of shoots in the foot the idea that the dollar is no longer a safe haven instrument.

I believe that we need to face facts: that regardless of our opinions and outlook for the dollar in the longer term-- for the immediate future-- the central banks around the world don't see it our way (yet). Central banks and (many) investors 'round the globe, continue to view the U.S. dollar as the safest place to park purchasing power. Now--most of us here, don't view it that way but, these central banks are all in cahoots together. If the U.S. or the U.S. dollar sinks, their all going down with the ship (probable disaster.) So- it's in their best interests to "bail water" so to speak, for as long as possible.

This is not to say, that as chinks fall from the caulking holding the dollar boat afloat and she begins to take serious water, that we won't see some scrambling overboard. But I believe-- and I've stated this before-- the U.S. has the GUNS...the biggest guns...and the most guns. You play ball with us or, you face the consequences. The guns-- is one of the items that makes the U.S. the safest haven (so far). Central banks actually help us buy the guns! Thereby, buying their own protection. And, bailing out of the dollar in an overt manner, so as to SINK the dollar, might, in some extreme, be viewed as an attack on the United States and therefore an act of War! This all assists in continuing the supreme dollar regime, IMO.

USAGOLD Daily Market ReportPage Update!#1468398/21/06; 22:43:10">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

Gold sharply higher, dollar down

August 21 (from Reuters) -- Gold futures in New York rallied more than 2 percent to end sharply higher on Monday, powered by a jump in copper prices, a weak dollar and a higher oil price.

The COMEX December gold contract settled up $13.50 at $635.20 after trading from $621.60 to $636.50 -- its priciest since last Thursday.

George Gero, vice president at RBC Capital Markets Global Futures, said buying was touched off because of increased geopolitical tensions and moves in external markets like currencies and energies that were beneficial to the metal.

"You had rising crude, a falling dollar, and sabre rattling from Iran," he said. "Traders said, 'I don't want to be short in gold'."

Gold is a classic safe-haven investment in troubled times.

Dealers also said gold got a boost as investors bought the basket of metals after copper rose 1 percent early in the day amid a labor dispute at a giant Chilean mine.

The dollar slipped broadly Monday, hitting a two-month low versus the euro, as investors avoided the U.S. currency amid mounting evidence that the U.S. economy is slowing.

By midafternoon, the euro was up about 0.7 percent against the dollar, at $1.29.

Gold frequently rises when the greenback falls, as the dollar-denominated metal gets cheaper for traders overseas.

Stephen Briggs, analyst with Societe Generale, said gold demand was likely to get a boost going forward because of interest from top-consumer India and renewed consumption of metal from jewelers who may need to add to low inventories.

"While swings in investor sentiment have had intermittent effects on underlying grass-roots demand, the outlook for the next few months and into 2007 remains healthy."

---(from url)---

TownCrierApologies for the late DMR posting...#1468408/21/06; 23:04:58

But, better 'late' than 'never', right?

A 20-hr drive of 1,400 miles, pausing only long enough for fuel, to travel half-way across this great country completely wiped me out and pushed back my schedule.


GoldiloxParking dollars#1468418/21/06; 23:10:32

@ Goldendome,

I think you hit the nail on the head when you talked about the dollar as the place to "park purchasing power".

While most of us believe gold is the place to park "savings," it has not reached that status in the world of liquid investment, ETFs and other derivatives not withstanding.

Still totally different animals.

TownCrierServer glitch????#1468428/21/06; 23:14:32

Having two windows open allowed me to capture an odd event (and to save G'lox's post, pasted below).

What happened to it as I posted my previous? The ID # is even the same. Curious.

Something to look into tomorrow, and maybe ask Jeff to have a peek under the hood.

Has anyone else noticed glitchy behavior while I've been away?


Goldilox (8/21/06; 22:49:16MT - msg#: 146840)
Parking dollars
@ Goldendome,

I think you hit the nail on the head when you talked about the dollar as the place to "park purchasing power".

While most of us believe gold is the place to park "savings," it has not reached that status in the world of liquid investment, ETFs and other derivatives not withstanding.

Still totally different animals.

GoldiloxGlitchy behavior#1468438/21/06; 23:31:35

Other than a couple slow posts, everything seemed fine.

The hangup tonight was the first one of that severity.

TownCrierGoldilox#1468448/21/06; 23:58:56

Unless you reposted it, the fact that your post reappeared makes me think that Jeff might already have been under the hood (indeed, server upgrades and outages were scheduled this past Saturday), and maybe he had temporarily suspended or rerouted the posting mechanism. As it was, my own post took forever to get through before it finally did -- and that only after several failure messages stating that the server was unavailable.


GoldiloxRepost#1468458/22/06; 00:18:59

I hit the post button again, but not until I after I got a server timeout message and then waited about 5 more minutes.

Probably all happened during your "adjustments".

melda laureIndex of creeping fruitkake indicators#1468468/22/06; 01:19:52

I've noticed the server has been unavailable at times. Usually it is good after a few minutes.

RobKirby is sounding a bit more conspiratorial tonight.

Why the price suppression? If the financial sector can rig the prices of real things in the economy, they can hide a great deal of the real inflation that the fractional reserve fiat money system creates. The trouble is, this has been going on for 60 years now, and the cumulative inflation is now so high that producers of real goods are opting out of the game....

...Hence, the forests are returning to Eastern North America as farmers stop growing crops at less than their costs of operation and lumber jacks stop cutting trees that are worth less than the effort to cut them (an old growth pine tree is worth only $100 on the market these days), and Africa starves because their commodity exports aren't worth exporting. There is a shortage of most metals now because mining companies stopped looking for ore deposits to replace reserves in a futures driven metal market that made them eat low prices for their output but let their costs soar.

I know most of you don't care for this stuff because it doesn't seem to affect your day to day lives, and as first worlders, YOU TEND TO DERIVE BENEFIT FROM THE LOW DERIVED PRICES [ML: my emphasis]. Your well being depends on low consumer prices, because your incomes are derived from a services dominated economy. Get real. That economy is false. If the derivative systems and the hold of the G8 on the world economy ever falters, you will watch your fiat prosperity disappear in a hyperinflationary explosion..."

END snip:

My my! Such tone! It couldn't possibly be true!

Cliff Droke usually strikes me as a technical trader type. He has been saying for several years that the whole point of this derivatives clown act is to "bring about the total integration of the global economy" or some such fascist sounding thing. I dont mean that as commentary on his character, rather that he tends to be of the realist school as opposed to the wacko nutjob school of economics. Well, he is no fool:

One thing economists rarely make reference to in the ongoing discussion of the global economic boom is the effect that mass psychology has on the economy. Although consumer sentiment indexes do exist they are interpreted with a rather straight-forward conventional approach instead of from the contrarian psychological standpoint. Bombings, and equally significant – the fear of bombs – has been the X-factor of the global economy and U.S. stock market this year. This will be the focus of the second half of our commentary.....

...That strategically timed bombing campaigns, both terrorist and military, can provided an added support beneath the major stock markets as well as bolster the global economy, was a profitable discovery made by the global financial controllers.


My my, he's sounding more like Sir Goldlox, (or Gasp! Sir TIH!). Of course this isn't the first "bombing index" paper Droke has written (if memory serves.) He goes on to doubt the reality of the latest airline scare (he has much company there).

Well that's most thought provoking, we've all jumped off the deep end. I still havent filled the swimming hole to the brim with 100 oz Ag bars. And my Au pile is still small enough that I can lift it so it is obviously not too big yet. So I intend to derive a bit more "benefit" as long as I can before the rest of the planet catches on.

Sir TIH, earlier I asked what if we GAVE them nukes for their oil and "consideration". Now you ask what if the US got what it asked for: Oh that's rich!

Of course, Saddam told us he was being honest and we didn't take that for proof nor any amount of inspections, in fact, many still think those weapons are hiding somewhere. So Ahmindejad is in for it no matter what: especially if (Heaven forefend) the oil supply isn't yet as tight as we've been led to belive.

If he is wise, he will melt the entire national gold stockpile into one stonkin' humungous ingot that is too unwieldy to carry out the door.

Sir Thouroghly:
Origins of the Welfare State in America by Murray N. Rothbard. A truly fascinating tale: we should blame it all on Carrie Nation.

I do have one question: Who is right, Antal Feteke or Robert Blumen? Sir Sundeck- that discussion might be too hot for this or any forum, (the historical comments on mideaval clearing house models is interesting and deserves further scrutiny.)

Sir Sundeck. I am probably guilty as charged. It seems that a rising gold price often results in less useful information and too much cheerleading. Once the price is down or sideways, the ratio of useful information seems to rise as post volume drops. The general comments on commodities are probably irrelevant (no matter how horrifying to Mr Kirby and others). No amount of mayhem seems able to dislodge the death grip of intervention: Mr Kirby is right, the stakes are no less than the Dominance of the west over the Rest of the World (and europe already has its backup paper-,+from+the+south+to+the+north

"Lords of the Land and Kings of the Sea..." What garbage! Lords of the ledger and kings of the fee is more like it. We are fighting to see which is mightier, the pen or the market basket.

It's looking less like a fireworks show and more like the battle of unnumbered tears: a fight down to the last 1/2 sovereign, nugget, flake and crumb. FOA never said it would be neat, only that Physical would outlast the storm.

melda laureSo many dollars, so little gold#1468478/22/06; 01:31:41

Goldendome and 'Lox. At least most of us dont have so much savings to park that we cant buy as much as we are able. Bill Gates cannot say that.
KnallgoldBarrick cares about GATA#1468488/22/06; 03:07:52

Barrick: GATA is spreading misleading information re: NovaGold bid
SundeckWhy you must buy gold or - even better - silver now#1468498/22/06; 04:15:39


And, perhaps most dangerously of all, governments around the world have promised their citizens a level of economic security in the form of pensions and health benefits that they cannot possibly afford.

Today, not very many people understand the fallacy of these actions... or their inevitable collapse. But... over time... more and more people will begin to doubt the solvency of their governments and the practicality of their schemes. If the government can't pay its bills... why am I saving its dollars? If I can't depend on the government to protect me and my family, how will I pay for protection... for health care... for energy...?

When people have tangible evidence that something has gone badly wrong with the economy, they begin to hedge against it. They hoard real assets. Rich people hoard gold and silver.

Sundeck: Porter Stansberry does alright on the analysis until getting to the gold/silver ratio bit (see link)...

Some people talk as if the gold/silver ratio of 16 is written in the stars and cast in stone. All this stuff about "reversion to the mean" etc. is based on no mechanism and little understanding. Sure, in any long time series, excursions often revert to the mean, but if there is a change in the fundamentals there is no guarantee that the old mean will be maintained.

No one knows exactly where gold is going and the same applies to silver. But that is OK, because it is very apparent where the dollar and other fiat currencies are headed, and if you hold gold and silver you are likely to maintain your wealth securely, irrespective of precisely how the gold/silver ratio evolves...


HenriGoldendome Msg #146838#1468508/22/06; 08:58:50

Sir, I agree that when entities of significance begin to jump ship on the "USS Dollar System" that the US administration will take a dim view of it. In fact this has already been happening. Timing wise the most obvious trigger for the "liberation" and democratization of Iraq was the announced intent of Sod_mnd Insane to trade oil for euros…act of war? When Argentina announced that it intended to change its monetary policy from a 100% link to the US dollar to a "Basket of currencies weighted in a more significant way to the euro, the US banking institutions operating within their borders pulled the carpet out from under them…act of war? Paper war? No bullets necessary…

When you state that it is guns that maintain the supremacy of the dollar system at the behest of central banks, I think that we part ways philosophically. I do not deny that it is only through the purchase of US treasury bonds by China and Japan that the US is able to afford and support the Iraq debacle and other "police actions" about the globe; however, I see these central banks are, as you say, only seeking to avert overt financial collapse as the inevitable transition out of the dollar based system progresses. I do not see this as "buying protection" nor do I believe that they believe this. If and when the world sees US as you do, a disorderly rout (which is already in progress but as a controlled transition with some seemingly unpredictable market disruptions) would ensue in short order.

That said, I do agree (because monetary policy is a political animal controlled by political animals) that the transition will be necessarily orderly for obvious reasons…the alternative is unacceptable. I believe we can gauge the progress of the transition by observation of the orderly rise of the POG. I don't believe we will ever see a return to a gold based monetary standard, for inherent in this structure is a mechanism for and the absolute necessity to manipulate the "price/value" of gold.

When I say "seemingly unpredictable market disruptions", I mean that all the violent and obtuse market moves are all symptoms of an evolving monetary transition seeking to break free of the most significant drag on its progress…the massive unregulated derivatives market. IMHO this is the true protection racket. It is the multinational private banks that abet (for a fee) those desperately trying to insulate themselves and their customers from overt losses due to the ongoing transition. Here lies the largest pool of free dollars in the free world today. The central banks do not want to harm the constituency of their political appointees and so do not wish to disrupt local stock and commodities markets and go to great lengths(notice I did not say expense) to "stabilize" them. This does not necessarily apply to the stock markets of other localities which may be "punished/rewarded as long as they walk the path forward) The money for this comes from the fiat press and as long as the net effect is the massive destruction of free dollar reserves then it is money "created" well (a money well if you like). Let me explain.

For the dollar system to remain viable in the near term (at least through the ongoing transition), monetary (dollar) destruction must occur on a massive scale to counter balance the profligate printing of the last few decades. In the derivatives game, there is a party and a counter party. By all accounts, it is the Private multinational banks (that are selling the derivatives…mostly J.P.Morgan) that are presumably acting as counterparties to those trying to preserve their fiat positioning in global commerce. But perhaps it is not the Private banks that are the actual counterparties…by hook or crook, ultimately it is the central banks (by liquidity guarantees to these entities) that are the final counterparties. Here is how the evolution progresses. When massive amounts of positions are stacked with the anticipation that hmmm…say the dollar will decrease in value, then the central banks and/or their puppets move the value of the dollar upward in the regulated futures market, thus punishing by monetary destruction (disappearance of accrued reserves wasted on a losing bet) the savings of those who seek most aggressively to hold their progress upstream against an ever current downstream. Destruction of this pool of money is the name of the game and it is done with the capital of those who can most afford to lose it. After all, would they (the parties buying derivatives) be spending all this capital so frivolously if they were short on cash? This actually follows the natural law (if one thinks of fiat as an endless stream of liquidity) "the tighter one grasps it the quicker it slips through your fingers".Most of all, destruction of this capital does not disrupt local markets that are managed to weather the bumps and sudden downdrafts that are the consequence of massive amounts of capital being extracted (to buy more derivatives) or repositioned to take advantage of a perceived short term play (liquidity transfers between markets) on the ongoing miracle of monetary management.

The largest threat to the slow transition (bleeding off of excess liquidity by monetary destruction in the unregulated derivatives trade) is a runaway price of real and necessary critical commodities.

Now, I ask you, should any of this forgoing diatribe be close to the mark, is it any wonder that major central banks (indeed even the central bank of central banks, the BIS) do not call for regulation of the over the counter derivatives trade? Does the slow and patient advance of the POG begin to make sense with the backdrop that major central banks are adopting the MTM philosophy (that is part of the ongoing monetary revolution) to cushion the shock of this massive monetary destruction? Think of gold held and purchased by central banks as a giant monetary shock absorber. Do the "seemingly unpredictable market disruptions" now seem so unpredictable? Who are the giants whose footsteps we should follow? Why they are the architects of the evolving new monetary system.

Here now is the question of the day. When the monetary transition is complete and apparent tranquil financial seas are evident, will there be a need for central banks to hold gold any longer? Will MTM be meaningful if there is no monetary system transition to weather. Will the wind beneath the wings of gold then fail to support its "Price"? Does 5000 years of history as a store of value mean anything when the new monetary equilibrium (bankers utopia) arrives? Your guess is as good as mine. Best advice? Follow the footsteps of the giants, or jump ahead of them and sell before they do? One who jumps in front of a giant strides runs the risk of getting crushed.

Henrierrata to below msg 146850 Paragraph 5, line 14#1468518/22/06; 09:10:05

"...against an ever increasing downstream current."
The Invisible HandViva l’Anarchia Americana!#1468528/22/06; 09:31:54

Re: Goldendome (8/21/06; 22:15:06MT - msg#: 146838

American empire is exceptional in that contrary to all previous empires it does not herald the promise of universalist values but instead brazenly declares its goal as the propagation of its own interests.
Since the very day the occupation forces came to Iraq and the Iraqi state collapsed
Attempts to choke Arab development cannot but fail. The three main currents developed by Arab societies — nationalists, Islamists and leftists — are intrinsically anti-imperialist and therefore opposed to US-Israeli regional designs.
What US-Israeli neo-imperialists have to offer is not only contrary to the interests of the Arab people, it is immoral.
Resistance is a matter of situation.
Every advocate of an alternative world should play a part in supporting the transformation that the renaissance of Arab struggles heralds. Whereas brute force has too often decided history, in the new world there will be no peace without justice, and no justice without the right of return for every displaced Palestinian; the immediate and unconditional withdrawal of the occupation from Iraq, along with the cancellation of all laws, treaties and agreements passed since the illegal invasion of the country; respect of Lebanese sovereignty and the condemnation and prosecution of Israel for the numerous war crimes and crimes against humanity it has perpetrated in Lebanon and in Gaza; that all Arab states and people which have been aggressed should receive fair reparations and compensations for the human and material loses they've endured; that all political prisoners should be set free immediately. Until these requirements are met, global civil disobedience is not only justified, it is a moral duty.


This article gives some idea of the many different changes that are evolving about Middle East matters. It also gives all the global players that are involved in those matters.

While Central Banks keep on using the dollar-unit, the hearts and minds have already drifted away from this dollar-unit and more precisely from what it stands for (military might).

The same changes have already taken place in other places (Euroland-Russia-Asia-other)
The "divide and rule" logic stops where the divided start uniting. From there on, the military might becomes increasingly counterproductive for its cause.

The "changes" continue to evolve as invisible as my hand up until the hand suddenly surfaces.

The short intervals between escalating wars are always periods where the invisible hand surfaces and manifests itself as a fact.

The correct timing for the Freegold anticipation is already behind us (1999-2001)...regardless of the fact that we continue to use the dollar-unit, today, tomorrow,....

The geopolitical events as such aren't that important. What counts is the many "changes" that these events cause.
Aristotle, Nicomachean Ethics, Book 7, Chapter 6, in fine

GoldiloxActs of financial war#1468538/22/06; 09:35:39

@ Henri,

Don't forget the Islamic Gold Dinar, which immediately after the '04 Christmas tsunami was completely purged from the news. Iraq and Iran were both strong proponents of this proposal, along with Indonesia and Malaysia.

While the Euro offers a competitive FIAT threat to dollar hegemony (more than likely only altering which branches of the international banking cartel gain power), the IGD proposal seriously threatened FIAT itself, by offering the potential of a truly PM-backed currency.

Even gold proponents no longer even speak of this proposal! The fervor over Mexican silver coinage also seems to have fallen into the couch, so to speak.

No one with "real" power wants anything to do with "real" money, as it makes it harder for them to control "the game".

The Invisible Handan interview Bernanke will never give#1468548/22/06; 09:51:32

BILD-Interviews Bundesbank-Boss Axel Weber
"What are you doing with our gold?"
"Was machen Sie mit unserem vielen Gold?"

This interview shows that the ECB's attitude towards gold is completely different from that of the Fed.

The Invisible HandAbsurdity all over the place#1468558/22/06; 10:10:08

"This is probably why we witnessed a totally unprecedented phenomenon during the Israeli-Lebanese war," the general went on to say. "This was the first time that the army of an independent, UN-recognized state, which has diplomatic relations with a hundred countries, did not defend its territory and people from an outside aggression. I mean the Lebanese army. Lebanon was attacked, but its army was not even ordered to defend it. This is unbelievable. Who needs such an army? Why do the Lebanese taxpayers maintain it? This is a very dangerous precedent
The price of crude oil could hit $300 (£158) a barrel if BP's pipeline corrosion crisis in Alaska turns out to be an endemic problem for the industry, according to the leading oil industry analyst Matthew Simmons.
What about oil in euro?

ABC gold market report
gold yesterday rose 15 dollar due to Lebanese tensions
How can the talking heads continue to discuss the daily activity of a market within a contained dollar regime?
During the last 25 years, gold went from ATH $850 to $250 and then back to $730.
Can you show me one place on this planet where a piece of land is still being sold at the same (lower) price as 25 years ago?
Aquinas had a mystical experience while celebrating Mass on 6 December 1273, after which he stopped writing, leaving the Summa unfinished. When asked why he had stopped writing, Aquinas replied, "I cannot go on... All that I have written seems to me like so much straw compared to what I have seen and what has been revealed to me."

Henrifor the unworldly#1468568/22/06; 10:16:56

Can anyone translate the interview in german cited by "the Hand" in msg 146854???
FlatlinerPaper is so soft#1468578/22/06; 10:46:20

Seems the news about Nickel has come and gone with little sway in our political world. For some reason, I can't help but see the unfolding developments as a glimpse into the future for other metals that we all hold dearly.

A quick search on Google for "Nickel default" shows a top hit with our friend Ted Butler ( Then, if you follow the collection of articles you find things like "Question of supply dogs nickel market" (,,8210-2318156,00.html) and "Nickel Shortage Prompts Unprecedented Action From The LME" ( and "LME boss says nickel limit gives market `certainty'" (

All of this is a high stakes, low press coverage, attempt to remove the ‘public’ emotion from the developing situation. We should all watch it very closely.

The most interesting part to me is that when the going gets tough, the rules change. Tomorrow, we could have the same situation in Silver. Silver has been looking for this squeeze for a long time. But, what we see here is that when the squeeze hits, and should take affect, it is neutralized with a simple rule change (or is it?) and the longs are left with uncollectible profits and a stunned look on their faces. It reminds me of the Monopoly posting where the rules change to keep the game going. But in this case, the cupcake (Nickel) will not fall into the hands of the speculator.

Nickel though, doesn't really draw attention like gold and silver. It will be interesting if the trading houses can maintain confidence if either one of these fall into the same predicament. It may not be long before there will be haves and have-nots in the precious metals arenas. Some will hold physical and others will be trapped speculators.

GoldiloxTopical moderation#1468588/22/06; 10:50:27

While the issue has been raised, and Admin has so far been very light-handed with the censor's knife, I noticed my favorite motorcycle site is also undergoing a strong pull to non-topical areas and is airing issues with perceived over-moderation.

Is this just overflow from a society that no longer feels the opportunity to express its views and grabs the availability to express ones' self where ever possible?

I'm not trying to pull us off topic, but I wonder if current difficulties with topical focus have roots in the same conditions that are fueling "flight to quality" in investments?

I think a lot of people come here because they are frustrated by the "mushroom" treatment afforded by the politically beholden mainstream media, especially the financial press.

GoldiloxHaves and have-nots in PMs#1468598/22/06; 10:55:12

@ Flatliner,

Very good point. I also wonder if this relates to "the little guy". While the major exchanges have the ability to "change the rules", the retail market moves forward with few hitches, so far.

The only event that anyone remembers affecting the retail sector is FDR's confiscation and subsequent "outlawing" of ownership.

Does anyone see less drastic, but meaningful, restrictions coming to the retail sector?

Flatliner@Goldilox#1468608/22/06; 11:28:32

I'm a little suspicious that it's the little guy that didn't see the rule change coming. Seeing that this forum has graced us with a right-side-up understanding of metal as money, one might just assume that the big players also have this understanding. It seems to me that if a big-boy gets on both sides of the equation, both long and short in different accounts, they can move the market price wise. Also, when it comes to paying a %1 penalty per day, it may be that they are paying themselves. Thus, the little guys that should have bought physical are left with an expiring contract that really doesn't benefit from a spike in price. That is most unfortunate.

At this point, it's not about speculation, it's about wealth preservation. Those that can hold out the longest will benefit. In order to do this, you have to give up on expiration dates and contractual obligations tied to a future date. A bird in hand – so to speak.

Oh, regarding ‘FDR's confiscation’, it takes an older educated investor that has studied the function of gold to really know what this means. The average joe (99.9% of all people) deal with paper money and paper balances and paper savings.

Rather then voting for paper benefits, vote by acquiring physical coins.

GoldiloxThe "Little Guy"#1468618/22/06; 12:01:26

@ Flatliner,

People I was referring to as little guys aren't likely to be playing on the Comix. I meant the ones who are more likely to call our hosts' "Small Order Desk".

Maybe a difference of magnitude, but rule changes in mega markets do not seem to "directly" affect the purchaser of a few coins at a time.

My question was "Does anyoe see this changing?"

GoldiloxUSDX#1468628/22/06; 12:07:18

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Druid"Gold, Get You Some"#1468648/22/06; 13:05:42

Druid: I'll post this once again for any newbies that might have come on board since the last time I posted it.


The debasement of world currency: it is inflation,
but not as we know it

by Peter Warburton
April 9, 2001


Central banks are engaged in a desperate battle on two fronts

What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, their actions seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.


Now, Rhody's comments:

As my metals pundit friend Rhody explained in a private e-mail to me,

"Here's the latest little fiasco on the paper derivative scene.

Apparently, some entity(s) have been naked shorting nickel to the point where they are now trapped. (Naked shorting is selling futures contracts for delivery of something you do not have. It is a form of fraudulent selling) Naked shorting in a market with a physical deficit of supply makes no sense, unless the object is price suppression for political reasons. The only other possibility is stupidity and greed. It looks like the powers that be are moving to assist these naked shorts.

I might add that there has never been a case on a futures market for the PTB to come to the assist of a speculator with a naked long position (a buyer who bought too much and couldn't come up with the rest of the cash when delivery was due). All this supports my contention that futures markets generally are derivative systems designed to suppress the prices of all commodities. Imagine what the price of nickel would be if there had been NO naked shorting to augment supply in paper form. Hence the nick name CRIMEX for COMEX.

Why the price suppression? If the financial sector can rig the prices of real things in the economy, they can hide a great deal of the real inflation that the fractional reserve fiat money system creates. The trouble is, this has been going on for 60 years now, and the cumulative inflation is now so high that producers of real goods are opting out of the game.

Hence, the forests are returning to Eastern North America as farmers stop growing crops at less than their costs of operation and lumber jacks stop cutting trees that are worth less than the effort to cut them (an old growth pine tree is worth only $100 on the market these days), and Africa starves because their commodity exports aren't worth exporting. There is a shortage of most metals now because mining companies stopped looking for ore deposits to replace reserves in a futures driven metal market that made them eat low prices for their output but let their costs soar.

I know most of you don't care for this stuff because it doesn't seem to affect your day to day lives, and as first worlders, you tend to benefit from the low derived prices. Your well being depends on low consumer prices, because your incomes are derived from a services dominated economy. Get real. That economy is false. If the derivative systems and the hold of the G8 on the world economy ever falters, you will watch your fiat prosperity disappear in a hyperinflationary explosion..."

I'd like to share a few more sage words of my friend Rhody – words I've shared with you all before but they're worth repeating again and again,

"I say, wait until COMEX [or LBMA] stockpiles are gone, and there is a default on COMEX [or LBMA] that eliminates the futures price discovery system and we should see a fair market price fairly quickly, and I do mean "FAIR" market price. A price actually determined by true supply and demand fundamentals." [RK emphasis]

Now, notice the date of Mr. Warburton's comments and reconcile that with what is happening today per Rhody's comments. It's that "inherit value" thingy that must truly never come to light. If some of you lurkers out there are still struggling with making that plunge toward your first bullion purchase, I strongly recommend that you give these fine folks here at the castle a ring and dive on in. I'm reposting this again to let you know that for those of us that have been convening at this fine castle forum for as long as I (we) have, what is transpiring and taking shape before our eyes is really no mystery at all but par for the paper course.

DruidDruid (8/22/06; 13:05:42MT - msg#: 146864)#1468658/22/06; 13:14:42

Druid: Correction...."inherent value" thingy.
TopazAu/Ag...Sundeck.#1468668/22/06; 14:28:05$GOLD:$SILVER&p=D&st=1990-01-01&en=2006-12-23&id=p44105871339

The thing with the ratio has more to do with an early warning system imo than any preference one over the other.
Silver can be seen as the Canary in the Coalmine here indicating what Gold is being prevented from doing via "management".
So, IF your Gold in Possession position is such that you are comfortable with it, why not also take a ride on the Silver Rocket? ...for surely it's headed back to the 20's ...even into the 'teens before the systemic wheels fall off.

Sierra MadreInterest rates "minus" (price) inflation#1468678/22/06; 16:05:11

It is amazing how stupidified financial analysis has become. The prevailing intellectual level in finance and economics in the journals devoted to reporting on those themes is abysmally low. I guess the true object is to guide the masses of investors in the direction which our masters desire them to go, very and far from analyzing events for the discovery of any truth.

Take the recommended practice – which we find without fail, every day in the press – that interest rates should be "deflated" by the Consumer Price Index to find the "real" interest rate.

This is a totally absurd simplification which should only be offered by individuals with an IQ of about 80. Yet, you find this silly practice in articles by supposedly knowledgeable people.

The idea is supposed to be, that a lot of people live off the interest on their investments, and that if prices are going up, then, if interest rates are not "positive" – that is to say, higher than the supposed CPI – then they are going to be suffering a falling standard of living, because the interest earned will not be enough to pay for the things they need to live on. Or on the contrary, if the interest rate is "negative" – lower than the increase in the CPI – then borrowers are getting "interest-free" money.

It's all so silly! First of all, because a genuine "interest rate" is not set by any human or group of humans, such as the Fed. A genuine interest rate is a market phenomenon, and we have no such market phenomenon today. The interest rate – at any rate, the short-term interest rate - is SET by the Federal Reserve. And it would not surprise me at all to find it proven that the long-term interest rate may be manipulated to some extent, thus invalidating it as a market phenomenon.

Second, because the CPI refers to a set of values ARBITRARILY selected by the bureaucrats who establish the CPI figures, and also manipulated, as we all well know, by "Hedonics". So the CPI refers to some things sold in some places at some prices in some volumes, and not to a million other things sold in other places at other prices in other volumes.

For instance, what about housing? We know that it was excluded from the CPI, because housing was going up, by using instead, the "implicit rent" which homeowners were deriving from living in expensive homes while interest rates were low. It appears that now there must be another arbitrary change, to cancel the rising costs of rent, now that more people are renting or about to become renters.

It's all fudge! It's all manipulation of perceptions, just as the increase in GDP was massaged to reflect the increasing power of computers as "increased production". Or, the increasing horsepower and number of gadgets in cars, for the same effect.

Subtracting the CPI from the interest rate to get a "real" figure is totally unacceptable from a scientific economic point of view and its acceptance only goes to show that economic discussion has fallen to the level of twelve-year-olds. Any writer that talks about "real" interest rates after inflation is talking utter nonsense. But, it's done all over the world. Conclusion: we are all on a plane flying at Mach .8 and – no one is at the controls!

Buy gold at any price.

Gandalf the WhiteSir Goldie's US$ NY session Chart !#1468688/22/06; 17:32:38

WOWSERS --- THAT is THE pictorial "Definition" of PPT MANIPULATION, IMHO !
Does anyone have the LINK for the 24 hour US$ chart ?
The action in the NY session is the WILDEST, I shall bet !

GoldiloxBush OKs involuntary Marine recall#1468698/22/06; 17:54:50


WASHINGTON (CNN) -- President Bush has authorized the U.S. Marine Corps to recall 2,500 troops to active duty because there are not enough volunteers returning for duty in Afghanistan and Iraq, Marine commanders announced Tuesday.

The recall was authorized last month, and will begin in spring 2007 to fill positions for upcoming rotations, Marine officials said. The Marine Corps is currently picking volunteers from the Marine Individual Ready Reserve, the officials said.

Marine Col. Guy A. Stratton, head of the manpower mobilization section, told The Associated Press that there is a shortfall of about 1,200 Marines needed to fill positions in upcoming unit deployments.

"Since this is going to be a long war, we thought it was judicious and prudent at this time to be able to use a relatively small portion of those Marines to help us augment our units," Stratton said, according to the AP.


So much for winding down the war, excuse me, "regime change" . . . but it's only 2500!

USAGOLD Daily Market ReportPage Update!#1468708/22/06; 18:23:48">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

Gold eases, Germany holds

August 22 (from Reuters) -- COMEX gold futures settled lower Tuesday on dealer selling fueled by a rising dollar, but uncertainty over Iran's atomic ambitions and high oil prices helped stave of deeper losses in the safe-haven metal.

COMEX December gold slipped $1.20 to end at $634 after dealing between $639.20 to $629.60.

Doubts over Iran's nuclear aims and the 34-day war between Israel and Hizbollah fighters in Lebanon have underpinned gold, even amid bouts of heavy profit taking.

Iran handed over its formal reply to a nuclear incentives offer from world powers and said it contained ideas that would allow serious talks about its standoff with the West to start immediately.

But Tehran gave no sign of heeding a key U.N. Security Council demand that it freeze uranium enrichment before the end of this month or face the prospect of sanctions.

In other news, Germany's Bundesbank is not planning to sell gold from its reserves in the next year of the central bank gold agreement, its president Axel Weber indicated.

(DowJones) -- In the overall picture for gold, Peter Grandich, analyst and editor of the Grandich Letter, said that gold made a major bottom last Friday around $610 and is "primed for one of its best rallies in a long time."

Grandich added that a generally deteriorating dollar, strong physical demand for gold as the market enters its seasonally favorable period, shortfall in mine supply and in Central Bank sales along with "several geopolitical events" have all combined to give gold its best fundamental and technical picture in quite some time.

"A new, all-time high above $875 is only a question of when, not if," said Grandich.

---(see url for full news, 24-hr newswire)---

GoldiloxDMR#1468718/22/06; 19:23:34

It's interesting that Grandich says the next stop is $875, an Sinclair says its $887.

I wonder what geopolitical/fundamental/loss of control events are gonna power us up the next $150?

The Invisible HandHenri and Goldilox#1468728/22/06; 20:32:26

HIGHLIGHTS-ECB's Weber interview with Reuters

The Invisible Hand (8/22/06; 10:10:08MT - msg#: 146855)
Absurdity all over the place
ABC gold market report
gold yesterday rose 15 dollar due to Lebanese tensions
How can the talking heads continue to discuss the daily activity of a market within a contained dollar regime?
During the last 25 years, gold went from ATH $850 to $250 and then back to $730.
Can you show me one place on this planet where a piece of land is still being sold at the same (lower) price as 25 years ago?,,1856164,00.html


· Supplies limited by lack of storage capacity
· Big six have already raised prices at least 35% this year

Terry Macalister
Wednesday August 23, 2006
The Guardian

mikalPrevention is always better than their "cure"#1468738/23/06; 00:28:11

Expert: Massive Flu Pandemic Is Imminent - Sci-Tech Today - 8/22/06 - "Sometime in the very near future, the next influenza pandemic will sweep across the globe, infecting billions, killing millions, crippling healthcare systems and bringing economies to a halt."
This article warns against doing nothing, or creating a panic. But it seems our health care infrastructure is more vulnerable than at any time with the monopoly and overreliance on centralized bureaucracy, large medical treatment centers and allopathic/big pharma allied doctors at the expense of local family practitioners and home-based folk medicine. They, along with local economies and the entire global financial system are ill-equipped to prevent
a disproportionate number of unhealthy, ill or elderly victims let alone among the general population should some pandemic appear. There is irony in the author's assertion: "crippling healthcare systems and bringing economies to a halt" when such disruption was already chronic and systemic and becoming more acute!

GoldiloxTHE TREND TOWARD STATE CORPORATIONS#1468748/23/06; 00:36:21


Economic distress is certain to lead to more mergers of US corporations with the state. Economic distress in USEconomy renders more difficult continued freedoms on the political side, as national security forces the sacrifice of liberty. This is a deeply unfortunate trend. Formation of state dominated corporations in my view is a crystal clear harbinger of two developments. Outside the US borders, it signals an escalation for the global war for energy. Notice almost all such giant corporations have an energy nucleus. Inside the United States, they have a financial nucleus also, since financial weapons have been used as lethal economic weapons for decades. Given the Petro-Dollar superstructure, an umbilical cord ties the USDollar to oil. US tactical financial weapons are indeed deployed in order to protect energy supply, and at low cost. Inside the US borders, it signals a deterioration of personal freedom, civil liberties, and the private sector ability to migrate and transport money.

The next couple years will be explosive in the energy world, financial world, and political world. The collateral damage will be to economies, efficiency, and innocent people. The greatest casualty will be to TRUTH. Official national statements have often sunk to efforts to control public opinion, to shape conditions for legislation, to summon national emotions. The degradation of press & media quality and reliability in the United States is not only noticeable but should send the people into PUBLIC DEFCON. It has already degraded on a grand scale. Media networks are each owned by a corporation, each subject to party alliance, political motives, and agendas. The disparity between US news story slant & bias is astounding. The disparity between US story reports, versus European or Asian reports on the same story, is even more alarming, but not as frightening as the absence of stories being reported at all in the US press & media. A free press has always been held at the pinnacle of institutions in a land of freedom, a great light to shine. That light is going dim.

The tribes of the world have aligned. Their economic armies are comprised of state corporations. Securing energy, minerals, food, and water are of primary importance for tribal survival, as is keeping the flow of money ample and reliable. Gold and crude oil will be set on perpetual upward courses in price, with such a belligerent corporate climate in force. State corporations exist to fight wars on the economic fronts. They exist today to fight the GLOBAL ENERGY WAR, and to fight the FINANCIAL WAR TO PRESERVE THE PETRO-DOLLAR. Corrections in the gold price and oil price will be shorter in duration but no less volatile. Anyone who purchased gold under $580 is deeply satisfied. Anyone who purchased silver under $10 is deep satisfied. Selling rallies will be to lure in suckers who fail to comprehend the global war and its corporate weapons. No price decline in either gold or oil can be sustained in such a climate of war and prevalent warlike corporate devices.

The true safe haven is not a government bond of any type, certainly not one which is responsible for 65% of all global debt in 2005 on a global basis. Especially not a govt bond from the nation which is so deeply committed to war in the Middle East in pursuit of oil, complete with its instability. Especially not from a nation which has authorized pre-emptive strikes while at the same time relying upon questionable usage of intelligence information. Especially not from a nation which has a growing deficit and trade imbalance beyond structural remedy, complete with poor repayment potential. Especially not from a nation which has corrupted and rigged markets against Constitutionally mandated metals (gold & silver) which stand in opposition to its USDollar. The USTreasury Bond, long the safe haven, is like a giant metallic pillbox sitting in on open field during a massive lightning storm. All those who hunker down in the USTBond pillbox run the risk of financial electrocution. As long as the funding for military operations and state dominated corporations comes from the same large pool in which USDollars float, gold and crude oil will outperform all other investments. The USGovt is bound to flood the system in order to finance its operations, where like the first-borns, the first to feed at the table is the war machine. The second to feed is the fleet of state corporations. The back draft of preferential financial feeding creates a colossal wind current for gold and crude oil. Essential commercial and financial commodities rise in price in times of war, strife, and chaos. The unspoken truth is that the gold and crude oil price have risen markedly since the Iraqi War, which kicked off the Global Energy War. As it rages, yellow gold and black gold will continue to rise.


Nver one to mince words, JimWillieCB takes on the movers and shakers in the global resource war.

Armageddon@mikal - Bird Flu and 2006 like 1987 for stock market crash#1468758/23/06; 01:58:32

I think Jim Rogers said that a Bird Flu pandemic would be bad for commodities and that physical gold would go down the least of the "commodities". Right now I am about half physical gold and half cash. I just recently sold most of my gold stocks. I was told that during the crash of 1987 gold stocks went down by 50% and alot of people are saying that 2006 looks alot like 1987.

Surprise: Bears still growling about 1987
Commentary: They see similarities in 2006 to the '87 crash
Disable live quotes
Digg it
By Peter Brimelow, MarketWatch
Last Update: 12:01 AM ET Aug 21, 2006

NEW YORK (MarketWatch) -- Market up five days running. Biggest Nasdaq gain in four years. Time for something distinctly depressing!
Well, not deeply depressing ... totally. But checking around, I was surprised to find that Don Hays of Hays Advisory, the respected institutionally-oriented superbull, was having one of his periodic moments of nuanced doubt after the past week's strong action.
He wrote in his last bulletin: "We are amazed at the lack of belief in this rally by the public investor. We find the 'dumb' investor is still nervous and cautious, and the 'smart' investor is not yet bailing out. So yes, you have to start paring back on those disappointing stocks that have not used the recent up-move in the market to heal themselves ..."
But, Hays qualified with his usual exquisiteness, "Don't overdo it. The tug-of-war ... is still on the side of the bulls."
And, more alarmingly, John Mauldin of Millennium Wave Advisors was reflecting in his week-ending e-letter about taking the hard-landing side in against Oak Associates' Ed Yardeni in a point-counterpoint debate interview that appeared in Aug. 18 Wall Street Journal Online. See Wall Street Journal column.
Mauldin's bearish take: "We have a slowing economy and rising inflation - by any other name that's stagflation. And given all the excesses of the 1990s and the excesses of the housing market, a little stagflation - maybe including a mild recession - may be about the best outcome we could ask for."
Mauldin's more-alarming afterthought: a chart argument made by Bill King in his daily King Report that the S&P 500 action after June has produced what King calls a "W pattern" with three forays up to 1,280-1,300 separated by two down to 1,220.
Ominously, King notes, that's just what happened before the 1987 Crash.
King wrote: "We are NOT suggesting that a 1987-like crash is imminent; but we are warning that 'W' formations can lead to dramatic market reversals. The current stock market is in a weaker technical position that it was in 1987 as evinced by its position to its quarterly and yearly moving averages. In 1987 interest rates were much higher, but the economy was stronger and the US trade deficit problem was in its embryonic stage."
King's conclusion: "The moral of the story is stocks need to rally sharply from here to negate the 'W' pattern, or on any decline stocks must NOT breach the base of the 'W' pattern." (i.e. 1,220). If a stock decline violates the base of the 'W' pattern, Big Mo, as in 'Momentum Players' will be unleashed by traders and investors and he will be hurling red tickets."
I can't help it; I always twitch when anyone talks about the 1987 Crash.
You had to be there.
And, as it happens, from a very different perspective, New York University economist Nouriel Roubini last week also published a discussion on his Roubini Global Economic service on "The Scary Similarities between 2006 and 1987."
Among other factors, Roubini cites "trade protectionism and asset protectionism; hedgy and trigger-happy investors and rising geopolitical risks; the risk of a disorderly fall in the U.S. dollar; a slush of financial derivatives that are a black box that no-one understands... frothy markets where years of too easy money have created bubbles galore - the latest in housing - that are ready to burst; a bubble of thousands of new hedge funds with inexperienced managers...a housing market whose rout may trigger systemic effects ..."
Many readers don't like me quoting bears. But, hey, you aren't going to hear about them from your broker. End of Story

The Invisible HandThe dollar standard is a mere bomb standard #1468768/23/06; 05:11:16


FRANKFURT, Germany, Aug. 22--Bundesbank President Axel Weber ruled out Tuesday the use of Germany's huge gold reserves to help fill the gaps in federal budget, according to AFP.
Asked by the mass-circulation daily Bild whether the German central bank could simply sell some of its gold to plug the gaping holes in the budget that the government wants to fill by means of an increase in valued-added tax (VAT), Weber replied, "You can't be serious.
"Such one-off measures are never a good idea," the Bundesbank chief said. "Drawing on capital is not an alternative. It is better to press ahead with consistent debt reduction. And here a lot can be done on the spending side."
Germany has 3,428 tons of gold, worth an estimated 54 billion euros (69.5 billion dollars) at current market prices, making it the second largest holder of gold reserves in the world after the United States.
In addition, it has a further 28 billion euros in reserves of foreign currency, such as the dollar and the yen.
The issue of what to do with such massive reserves have frequently led to tensions between the government and the Bundesbank in the past, with politicians calling for the sale of some of the gold, particularly in view of the rise in the gold price.
But the German central bank has long opposed such requests, not least because a sale could be seen as a sign that it is vulnerable to political pressure.
Weber told the Bild that the Bundesbank was not opposed in principle to a sale of some of the gold.
"I could imagine shifting some of our reserves from gold into foreign currency. But we don't want to tap into Germany's currency reserves," he said.
"Gold is part of Germany's currency reserves, of which we are the guardian. THEY ARE AN IMPORTANT FACTOR BEHIND CONFIDENCE IN THE STABILITY OF THE EURO," WEBER SAID.

Final sentence: reserves are an IMPORTANT FACTOR BEHIND CONFIDENCE IN THE STABILITY of the euro...

This is something else that Alan the Great, central banks STAND READY TO SELL GOLD, SHOULD THE PRICE RISE.

This is because the gold reserves of the US of A Treasury are a fixed price gold reserve, whereas the ECB's gold reserves are marked to market.

When he speaks about the stability of the euro, Weber means that the euro should also have a stable exchange-rate (vis-à-vis inter alia the dollar). Weber means also the appropriate euro price of gold which is the natural correlative of a stable euro.

Appropriate EURO price of gold and NOT DOLLAR price of gold. Both the ECB and the Fed are "making" their own price of gold.

Both prices, the ECB price of gold and the Fed price of gold, will not deviate too much from each other because both central banks administer/coordinate also the euro/dollar exchange rate.

The Fed is less interested in the stability of the dollar world currency. The Fed is therefore no central bank but a national/international bank which administers the dollar with a view to the US world economy, not with a view to dollar-stability.

That's why the US of A also needs this gigantic military industry which implements the colonising charactre of its world economy.

The dollar standard is no more a gold standard or oil standard, but a mere bomb standard.

The Invisible Handswitch from gradualism to radicalism #1468778/23/06; 05:55:56

by Henry C.K. Liu

All top posts in the management team of the world biggest economy are now headed by untested appointees with little high-level experience in government or proven policy predilections.
The problem Henry Paulson will face is right here at home in the US, not in Beijing or Moscow or even Caracas. He will have to explain to an ever increasing number of US voters how globalized financial markets and super-national economic policy has benefited them or will benefit them in the future.
Conflict of interest in policy-making is unavoidable in a complex financial system. It is not surprising nor unreasonable that those have done well in the private finance sector should be natural candidates to manage the finances of the public sector. And it can be argued that in a system such as the US's, the private and public sectors are two complementary rings of the national economy circus. Conflicts are tolerable if the management of the public sector by private interests produces a strong economy for all of the general public. When the economy falters, conflict of interest between private and public becomes a critical issue because it is always the general public that bears most of the pain. An economic downturn in the US will produce populist government by representatives of the general public rather than elitist government by the rich and powerful.
Some facts.

Today the inflation-adjusted debt of the US of A is TEN TIMES higher than in 1929.

Under FDR, a devaluation of 60% combined with low interest rates could make US export nor employment revive.

Globalisation began during the 1974 oil crisis where petro-dollars were being sent to US of A banks to be lent to developing countries which were therefore being condemned to export to the US of A in order to acquire the necessary dollars to reimburse the borrowed petro-dollars.

US of A protectionism prevented petro dollars already in those days from being invested in US of A entreprises.
In the "debt-driven" economy, higher (increasing) interest rates are in themselves an inflatory datum. Compare the present rate of debt.

Lower interest rates are deflatory for creditors. Compare the present pauperisation of creditors and the resulting stagflation. Hence the usury being practiced by the speculative financial industry.

In 1984, Reagan discussed the Fed's abolition openly.

Volcker renounced gradualism. This is perhaps what we can again expect.

Today's exuberant financial markets are only a shadow of the economy. Not the economy itself.

This explains why policies have less and less effect on the economy and more effect on "Finance".

With Paulson as US of A Usurer, euhr Treasurer, we have the indirect confirmation that the financial MUST use usury to make the economy collapse. This is implied in the historical sketch of Liu combined with the conclusions we inescapably have to draw from the recent events.

This explains why gold's vitality will increase to the extent that this absurd anomaly will be systemically continued. This will ultimately result in a switch from gradualism to radicalism.

ArcticfoxDon't usually post entire article but seeing no copyright and #1468788/23/06; 07:44:06

knowing that Butler is probably not adverse to his message getting goes..

First Nickel, Then Silver?
By: Theodore Butler
-- Posted 21 August, 2006

This past week, the investment world witnessed an event that has only occurred rarely in the past. I am referring to the extraordinary developments in the nickel market on the London Metals Exchange (LME), the largest base metals exchange in the world. Due to an unprecedented scarcity of metal, the LME was forced to revise the delivery terms of its nickel contracts. In return for allowing short sellers to delay delivery of metal, a daily penalty fee of around 1% of the contract value was payable by the shorts to long holders.

Here are some excerpts from the LME's press release of August 16 –

"Those with short positions in nickel falling prompt on Friday 18 August 2006, and on subsequent prompt dates until further notice, who are unable to effect physical delivery an/or unable to borrow metal at a backwardation of no more than $300.00 per tonne per day, shall be able to defer delivery for a day at a penalty of $300.00 per tonne. Those with long positions for prompt on those days who are subject to deferred delivery shall be entitled to compensation of $300.00 per tonne per day

Commenting on the announcement, Simon Heale, LME Chief Executive said:

"Nickel stocks are at historically low levels and we now have a genuine material shortage. Our first priority is to ensure that trading remains orderly and to prevent the risk of settlement defaults."

Although there has been widespread reporting of this event in all the popular media and news services, I have been thunderstruck by how mostly all of the reports have danced around the key fact at the heart of this matter. That key fact is that the LME just declared that its nickel contract has gone into default.

While Mr. Heale states that the action by the exchange is designed to prevent default, the action taken is nothing but a declaration of default, rendering his statement as absurd. Default is a simple word. Any time you unilaterally violate or negate the terms and conditions of any legal contract, that contract is in default. Period.

Moreover, a simple analysis of the situation reveals that the LME is aligning itself with the interests of the naked shorts in nickel, as common sense should tell you that no long holder asked the exchange to suspend the delivery obligation of the shorts.

I must say that it is troubling that with such widespread reporting of this event, the most important fact, the delivery default, seemed lost as a message. But make no mistake; this default is a most serious matter. In fact, as I have written previously, a contract default is the absolute worst event that could befall any exchange. In an instant, a delivery default renders an exchange suspect as an institution. It makes no difference if that exchange has existed for hundreds of years, a delivery default can immediately destroy the strongest reputation. This is the grave risk that the nickel debacle poses to the LME.

The main concern for the nickel market and the LME is that the abrogation of the shorts’ delivery obligation is not the end of problem, even though it may lead to the end of the LME itself. That is because legitimate long contract holders, particularly industrial consumers, have been left in a lurch by the deferral of delivery of actual metal. What do the industrial nickel users now do?

The legitimacy of any exchange or contract is based upon all conditions and obligations being upheld, and not suspended when it is expedient to certain interests. In the case of a futures or forward contract on a physical commodity, the most important conditions and obligations are those which guarantee and mandate how the contract is converted to actual delivery.

Although only a very small percentage of any futures contract normally results in actual delivery of the physical commodity, it is precisely the delivery mechanism that determines the legitimacy of the contract. Take away that delivery mechanism and you take away the legitimacy. Take away the delivery mechanism and all you have left is paper contract with no connection to the commodity involved. This is what has happened to the LME nickel contract – because the exchange has suspended the shorts’ responsibility to deliver actual metal, that contract has become, essentially, worthless to industrial consumers.

The key point here is not that every contract created between a long and a short will result in actual delivery, but that every contract will result in delivery if either party wants it to. Each party to a contract, the long and the short, entered into that contract voluntarily. No one held a gun to anyone's head, forcing them to buy or sell any contract. It is unfair and illegal that any authority (the LME) intercedes on behalf of either side to override a contract that was entered into voluntarily.

What the LME has done in nickel is relieve the shorts of having to round up actual metal to deliver against their contractual promise to deliver, and unilaterally transferred the obligation to the longs, the industrial user. These industrial consumer longs (and other longs) entered into their nickel contracts voluntarily and legally, with the option of taking delivery. Now they are told, with no warning, they can't take delivery and must secure metal elsewhere. The shorts don't have to scramble for material they promised to deliver, the longs have to scramble for material they were legally promised to receive. Nothing could be more unfair.

Furthermore, as long as the shorts’ obligation to deliver nickel is suspended, there is no good reason for an industrial user to buy an LME contract. This is the greatest threat to the LME. And it's not just deterrence for those buyers who want to take actual delivery. With the delivery mechanism destroyed in nickel, the linkage between the price of real metal and the LME contract is also destroyed. Without the requirement for delivery, the price of nickel on an LME contract and nickel in the real world loses its connection. In this case, the price of LME nickel is merely a figment of anyone's imagination. What good does it do an industrial consumer to hedge on the LME, if there is no assurance his contract will converge with the price of actual metal on the delivery due date? Without the delivery mechanism, there is no linkage between paper contract and actual metal.

This is the real meaning of the LME's delivery default. It is also the same thing with the short-side manipulation in COMEX silver. It is a coincidence that this LME nickel disaster has occurred precisely at the same time others and I have been alleging a manipulation in COMEX silver. However, nothing could prove our case more clearly.

A long-side manipulation, evidenced by a concentrated long position and prices higher than would be without the concentrated position, is something the regulators have vast experience in dealing with. While disruptive and illegal, long-side manipulations are usually short in duration and easy to terminate. The concentrated longs, usually speculators, are forced to sell their positions, causing prices to collapse and end the manipulation.

A short-side manipulation, like those in LME nickel and COMEX silver, is evidenced by a concentrated short position and prices lower than would be without the concentrated short position. (The concentrated short position in nickel has been reported in news stories, while the concentrated short position in COMEX silver is reported by the CFTC). The regulators have little or no experience with short side manipulations, and since the concentrated shorts are industry insiders, rather than outside speculators, there is little incentive for the regulators to move against their own.

The real problem with short-side manipulations is that it is very difficult to terminate without great damage because they have a long duration. When a short-side manipulation is terminated, like in LME nickel, it threatens great and lasting disruption to the actual market because the resultant shortage of material causes real hardship with no easy remedy. This is in addition to the damage caused to an exchange or contract involved in such a short-side manipulation, which ends in a delivery default.

Clearly, the UK regulators and LME officials waited too long to attack and resolve the short-side manipulation in nickel. If they had acted responsibly and forced the concentrated shorts to cease their manipulative activities, the delivery default might have been averted. Now it is too late in nickel, as the damage is done. Is it too late for silver?

I think there may still be time for the US regulators to act in silver and avoid a COMEX silver delivery default. But I also have my doubts. That's because the CFTC and NYMEX/COMEX officials have been dragging their feet on the issue of the concentrated short position. Instead of promptly responding to allegations of manipulation and a looming delivery default, the regulators are stalling. Stalling didn't benefit the regulators in LME nickel. It only made matters much worse.

In fact, the main, if not only, difference between nickel and silver is that the regulators will never be able to say they were not warned in silver. And if the regulators in silver still do not see how the recent events in LME nickel are directly foretelling what is going to happen in COMEX silver, then they do not deserve to be regulators any longer.

While I will continue to attempt to end the silver manipulation (with your help), it is entirely possible that government regulators and COMEX officials will continue to evade their legal responsibilities and allow the silver manipulation to exist, right up to the inevitable delivery default. That will be tragic, but it will be on their heads.

Fortunately, there is something else that you can do. You can take the debacle in LME nickel as yet another confirmation as what will happen in silver and position yourself accordingly. If there has ever been an exclamation point given to "buy and hold real silver", it has been given to you by the LME actions in nickel. If an exchange that has been in existence for hundreds of years can suddenly terminate delivery obligations in its contracts, how hard do you think it will be for those issuing pool and leveraged accounts in silver to do exactly the same thing? I think anyone holding such accounts needs to have their heads examined.

But the strongest message of the LME default is being sent to the silver industrial consumers of the world, because the biggest potential losers in nickel are the industrial users. If the LME can get away with suspending delivery requirements in nickel, how hard will it be for the COMEX to suspend delivery requirements in silver? Do you think the CFTC will come to your defense? The same CFTC that is stalling on the concentrated short issue in silver? Even more than those investors and speculators dealing in paper contracts, any user who is not stockpiling real silver inventories, in light of what just occurred on the LME, is missing the boat.

I hope the CFTC and the NYMEX does the right thing with this concentrated silver short position and moves against the manipulators. But even if they don't, there is no good reason for investors and industrial users to not protect themselves and buy real silver. How many wake-up calls are necessary?

-- Posted 21 August, 2006

contrarianDefault of LME Nickel Contract#1468798/23/06; 07:54:17

Default of this nickel contract once again shows the true worthlessness of these paper contracts.
contrarianDefault of LME Nickel Contract#1468808/23/06; 07:57:54

Also shows that there's a sucker born every minute. Imagine how those longs feel rooked and snookerooed! I guess they get what they deserve!

Shows what a bunch of charletans these paper handlers are. There's nothing like changing the rules of the game to save your A.

GoldiloxChanging the game#1468818/23/06; 09:30:07

@ contrarian,

The Wall St casinos are no more "honest" than the gaming casinos, who blackball and even arrest people for such audacities as "card-counting".

How blatantly dishonest to exclude anyone who actually understands how to play the game.

Can you imagine a contract bridge tournament excluding someone who counted cards? My mother used to kick my father under the table for NOT counting cards!

Now that it's been "determined" that card counting is not illegal, they use other means, like only dealing half the deck before shuffling, or their favorite - the eight deck shoe and an electric "shuffling machine."

Casinos always change the game when the "wrong people" win . . . not unlike Diebold election machines, which are one-arm bandits reapplied politically.

Our elections have been reduced to video poker - where "the house" is a guaranteed winner.

GoldiloxMore "Changing the game"#1468828/23/06; 09:51:06

This was the basis for my question day before yesterday. As most here seem confident that confiscation is not "in the cards" so far, what methods of "house rigging" may be in store for physical holders if PoG gets "out of hand"?

Surely we don't believe we'll "get a pass," if the banks start feeling serious pain from PoG runup.

Are we hiding our collective "heads in the sand" from this question, because it's too close for comfort?

KnallgoldGoldilox#1468838/23/06; 09:58:39

If physical gets out of hand?Well,they hedged that one,read the FreeGold archive and other "giving vaguely hints"-writings.Surely it will be called a great reform to the international monetary system :-)
GoldiloxFreegold Archive?#1468848/23/06; 10:07:41

@ Knallgold,

Can the "Freegold Archive" be accessed by simpler means than wading through daily posts?

KnallgoldGoldilox#1468858/23/06; 10:16:36

I meant the Goldtrail archive-but you're right,you have to wade through all the daily posts here as often thats where the jewels are cut...
Chris PowellChinese banks struggle to hedge bloated dollar holdings#1468868/23/06; 10:17:38

Chinese Banks Facing Losses on Dollar Assets as Yuan Rises

From Xinhua News Agency
via People's Daily Online, Beijing
Wednesday, August 23, 2006

Major Chinese banks, with an estimated $80 billion in foreign currency assets, will face losses if the yuan keeps rising in value, bank executives said Wednesday.

Banks holding U.S. dollars would "definitely suffer losses as the renminbi, or the yuan, continues to appreciate," Pang Xiusheng, the China Construction Bank's chief finance officer, told Xinhua.

The Bank of China would pay close attention to the yuan's exchange rate and its effect on financial management, said Zhu Min, a BOC executive assistant president.

The No. 2 state lender, listed in Hong Kong and Shanghai, planned to "further reduce" its foreign exchange holdings by the end of the year, Zhu said.

The Bank of China's foreign currency assets, believed to be the biggest among major domestic banks, were a longtime concern for its stock investors, especially with the yuan rising by greater margins lately.

Under China's currency controls, banks have been forced to buy the majority of foreign currency earnings by domestic exporters, piling up hefty U.S. dollar and other foreign currency-denominated assets.

U.S. manufacturers argue that the yuan is undervalued by as much as 40 percent, making Chinese goods cheaper in the United States and American products more expensive in China and hurting the U.S. job market.

In July last year China revalued the yuan by 2 percent against the U.S. dollar and abandoned its peg to the dollar in favor of a restricted float against a group of foreign currencies.

The yuan has since risen by 3.7 percent against the U.S. dollar. Its appreciation was typically sharp last week, rising 123 basis points last Wednesday. On Wednesday, the official exchange rate was at 7.9703 per dollar.

A China Banking Regulatory Commission report says as the yuan appreciates, though slowly, banks are finding it increasingly difficult to find foreign currency buyers to hedge risks through currency swaps and other financial tools.

GoldiloxChinese CB#1468878/23/06; 10:28:12

@ CP,

Between a rock and a hard place!

GoldiloxFreegold Archives#1468888/23/06; 10:34:53

@ Knallgold,

While I sometimes meander through the archives, I find searching for on specific topic too tedious for the amount of time I can allot to the task. I'm always grateful when Admin sets aside a labeled group of posts for later "research".

Some days, it seems difficult to strike up an actual conversation about gold. Maybe some posters will chime in with their thoughts.

While I bear no ill will toward those watching the forest, but when it comes to gold, I also like looking at the "trees."

GoldiloxArts and Crafts class#1468898/23/06; 10:47:26

@ Gandalf,

Never seen such a Picasso-esque chart before.

I hope the PPT is enjoying their "painting lessons".

Flatliner@Changing the game#1468908/23/06; 11:22:59

Goldilox, Went looking for a clear description of your question but didn't find it. In any case, I would love to hear ideas from forum members regarding perceived rule changes in the coming months/years and how they think it will affect the status of Gold in the world.

To me, the MTM concept used by major world banks that do not have license to print FRNs is the defense that us ants have against gold confiscation. In other words, these world banks have stated through their actions that gold will trade in the marketplace and the bank will use this transaction information to value the reserves. This seems to imply insurance of currency value for gold and a ready market for gold.

This MTM insurance tied together with the global marketplace makes it really easy for the little guy to find creative ways to find value in gold. It is, in my opinion, this global marketplace that works to the disadvantage of countries that try to ‘outlaw’ what is good. This leads me to believe (not for sure) that if a country tries to ‘buck the trend’ by confiscating personal wealth (held in gold) they will also have to isolate the country from world markets or police the boarders (which we all know is not effective).

Now, will us ants get a ‘pass’? Logic (and history) has it that confiscation may come to pass, but the outcome seems to be already defined by the other big players as something that will not happen everywhere.

But what about other big players? When I look at the ETFs and think about confiscation, I see an eminent domain opportunity. Gold is property and it may be needed for the public good someday in the future. I half expect that, before gold takes its rightful place as the international currency of trade, we will see the US$ try to defend itself by acquiring easy resources like ETFs and that physical acquisition will be sold into the market to support the shorts (more of the same game).

It's hard for me to see any other outcome then MTM gold in all currencies that trade internationally. I believe this is inevitable, but the time line is uncertain. There is so much gold in the world, that as long as TPTB can get their hands on it to use it to support US$ fiat (by driving the price low) the day of MTM for the US$ will be delayed. I also believe that the days are numbered and I draw this understanding from watching international bank sales of gold. It seems that public announcements of sales (and sales themselves) are less affective when countering central banks state that they will consume any and all liquidity provided by the sale. :) That, to me, is the clearest sign that we are not far from seeing gold take a very public step towards standing up as the international currency that settles trade and provides currency insurance for those trades.

The world need not fall apart in this process, but those that own the right to the US$ would lead you to believe just that.

Along the way, we will see rule changes. I would always bet that the changes will support the paper shorts. Thus, if the world markets run out of physical gold (silver), expect the contract price to drop. If we see a steep run up in the price of gold, expect margin requirements to change.

The good news in all of this is that Gold is physical property that is held on reserve in many world banks. Its function is to provide support for currency and insurance for international trade. This function is out of sight right now, but will not be if confidence is reduced in the US$. To me, this is our guarantee for wealth through holding gold.

GoldiloxClearer question#1468918/23/06; 11:41:01

@ Flatliner,
Here's the original post:

Goldilox (8/22/06; 10:55:12MT - msg#: 146859)
Haves and have-nots in PMs
@ Flatliner,

Very good point. I also wonder if this relates to "the little guy". While the major exchanges have the ability to "change the rules", the retail market moves forward with few hitches, so far.

The only [major] event that anyone remembers affecting the retail sector is FDR's confiscation and subsequent "outlawing" of ownership.

Does anyone see less drastic, but meaningful, restrictions coming to the retail sector?

My clarification is: What "rule changes" does anyone doresee in the retail market, perhaps reflective of the paper market rule changes, perhaps not?

Another way to put it:

If the FIAT PTB start to become more annoyed by little guys hoarding PMs and coins, outside confiscation, what other manipulations might we look for?

Thanks for your response.

MKA Decade of USAGOLD (Already??) -- Our Latest NewsGroup#1468948/23/06; 11:53:19

The latest NewsGroup is out. This go-around we resurrect our old Market Update format for your reading pleasure.

The following is a snippet to whet your appetite. If you are not signed up for our e-mail-based NewsGroup, perhaps knowing that this is the venue we will use to pass along our observations on the market might serve as an incentive:

* * * * * * *Soon we will reach a milestone at USAGOLD-Centennial Precious Metals -- the tenth anniversary of the launching of the USAGOLD website. It is hard to believe it has been ten years since I sat down to the computer and wrote the very first Daily Gold Market Report -- the site's anchor page. . . . . . . . . .In this past weekend's Financial Times, Alvin Toffler, the futurologist who has been rated the third most influential business analyst behind Bill Gates and Peter Drucker, outlined his "big notion of the moment.". . . . . . . . "Instead of the geographically bounded, socially ascribed communities of the past," writes Nathan Gardels of the Financial Times, "[Toffler] foresees networks of like-minded that bring people together as never before." . . . . . . . . .The internet, of course, is one of the institutions that makes Toffler's organizing principle possible. Anyone who has participated in the USAGOLD website, either as an observer or participant, knows that Toffler's observation has already become reality through internet portals like USAGOLD. Our website, it seems to me, fits well the definition of the "like-minded network" Toffler describes.* * * * * * * *


Comments also on:

The nickel market meltdown
Why gold doesn't always respond to the news
The credibility gap on budget gap and the numbers gap
A comment from Richard Russell worth noting ($1000 gold)
Keep scrolling for some stimulating comments under Notable Quotables

To join our illustrious, clubby group. . . .please go to the link above

GoldiloxPM Equities in a vice#1468958/23/06; 12:12:30

PM equities agetting hammered since the close of the Comix while GLD and SLV are pretty steady.

Set up for a Comix run tomorrow?

Gandalf the WhiteSir Goldie --- US$ Chart --- <;-)#1468968/23/06; 12:49:03

HOWEVER, do please note that the PLAYERS of the GAME are having trouble getting the "highs" higher than the day before ! SOMETIME, the little black boxes will note that fact and that GAME will be "toast", and a NEW GAME must be invented.
GET YELLOW NOW ! (while it is easy)
That NEW GAME may really be unfriendly to GOLDHEARTS !

Flatlinerwhat other manipulations might we look for?#1468978/23/06; 12:51:50

I would expect anything that prevents paper from being converted into physical. This would suggest more derivative products for investors supported by the banks that are in trouble. Also, I would expect laws preventing the flow of investment money into investment vehicles that invest in physical metal. I would expect public market delivery ‘forgiveness’ like what we've seen with Nickel. I would expect margin requirement changes that ‘flush’ the market at any point and I would expect aggressive language, towards the rest of the world, from those running the US$.

But, the game is already in checkmate! What we're witnessing is the struggle before the loser admits defeat.

What I'm looking for is how the loser will come up unscathed. I think I remember something about the Fed reporting gold on the books recently, but, it appears, that no one in the forum really understands what that means (or it's just lost to me). Could it be that the loser is positioning to not be destroyed by global rule changes? Could it be that the little guy will not be hurt in the US just like the little guy will not be hurt in any other country?

It's really the big boys that are shuffling for positions on a worldly scale so they can start another game. It just seems that the dealer has already been selected and the chips are golden.

This forum has given me confidence to not be so worried about the changes that are dictated by those that defend the US$ through the use of the public gold markets. Those in control must have trading economies so they can figure in their little advantage one way or another. We, as ants, are subject to ALL rules and regulations, but it doesn't mean that we must be blind to global moves and the foundation upon which the economies are built.

Keep buying gold – if you can afford it. Only play in the paper markets what you can afford to lose and be prepared for the worst. Live everyday like it's your last and always remember Black Blades advice. It's good advice.

GoldiloxGlobal changes#1468988/23/06; 13:20:21

@ Flatliner,

"Could it be that the little guy will not be hurt in the US just like the little guy will not be hurt in any other country? "

That would certaily be a first!


Goldilox"Dance"#1468998/23/06; 13:23:11

@ Gandalf,

The candlesticks on the USDX chart remind of the old spaghetti westerns, where they shot at the hero's feet, and yelled,

"Dance, Varmint!"

Flatliner@Global changes#1469008/23/06; 13:24:56

In this case, I have assumed that the little guy is the little gold holder. In my opinion, it's the little dollar holder that will be hurt.
melda laure(No Subject)#1469018/23/06; 13:59:00

The simplest is a form of "registration" of purchases and transactions by brokers and dealers (similar to the 1099 form now provided by your paper broker).

Given a good understanding of the effects of creative regulation you can imagine the rich options available there. For example, if the initial set up fee is $100 to register the purchaser, then automatically, purchases of single coins are out, only the committed investor will bother.

If the state transaction fee is on the same order then only large purchases will be economic and again the small buyer of one or two ounces will be dissuaded. Pawn shops will be discouraged from from dealing in gold coins because of the hassle.

Deeding or gifting of coins will also require registration. This can be "encouraged" by a suitable penalty fee (%20 of melt) for late registration after the amnesty period after which any transaction will incur cap gains on the gross value of the sale (not just the "profit"). Again, the point of such regulation is not to ban the activity but to discourage the potential investor from the hassle of entering the gold market. The large buyer already has enough problems because the amounts desired simply aren't available, and any reasonable fee is just another expense. The actual reasons for creating the new rules hardly matter (national security, preventing wire fraud, identity theft, increasing transparency etc, blah blah blah) as that is merely an obfuscation.

In fact, the initial fees could be small, and the only real goal would be to convince everyone that the government knows who has what and could "theoretically" be leaving open the door to a future confiscation, all amid vociferous denials. After that, fees can be increased.

The problem is selling the idea. Given the present day situation, it is more practical that initially a thorough examination of the rules for registration of equities is undertaken. Then any rules for gold ownership can be considered a mere "normalization" of the regulatory standards accross all investment categories.

That's the way this sort of BS works, in my experience.

Clink!A silver default on Comex ?#1469028/23/06; 14:45:13

That was a good article, Sir Arcticfox. Ted Butler asks if silver (I guess it's a little much to ask Mr. Silver to mention gold occasionally !) might not be the next to run into default issues. Midas has been tracking the Comex silver warehouse stocks for a long time, but has recently added the distinction of warehouse totals and registered totals (i.e. the tradable quantity). Looking back to last Christmas, the totals were 120 million oz (now 103) and the registered was 67 million (now 43), so it looks like there has been aconsiderable drawdon over the last eight months. However, go back to Feb '05, and the figures were 102 million and 40 million - virtually the same as now. So, while there might be similarities with Nickel, it doesn't appear, at first blush, that silver stocks are ominously low. However, it should be noted that the 20-year low of registered stock was 37 million in 2003, so, on a historic basis, the stock has been lowish for a considerable time, now. The only unknown that I know about (to paraphrase Rummy) is that the majority of the nickel stock in the LME already had warrants written against them (sounds like the same kind of dubious book-keeping which allows CBs to count gold receivables as the same as gold bars in their reserves) so it wasn't really there at all. Does anybody know where this kind of information might be found ?


USAGOLD Daily Market ReportPage Update!#1469038/23/06; 15:46:52">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

August 23 (from MarketWatch) -- Gold futures fell Wednesday to their lowest level in three sessions as traders reacted to moves in the U.S. dollar following a drop in existing-home sales. The COMEX December gold contract closed down $1 at $633.

Sales of existing homes plunged 4.1% to a seasonally adjusted annualized rate of 6.33 million, the lowest since January 2004, the National Association of Realtors said Tuesday.

Immediately after the news, the dollar looked like it would extend its decline, then the greenback turned nearly flat against most major currencies since the housing data had been widely expected and the figures did little to alter the market's view that the Federal Reserve won't raise interest rates again.

Taking a look at the bigger picture, "gold traders are gearing up for a move back above $650 as Iran has sent the clear message that it will not stop enriching uranium and as the Fed signals that more rate increases may be needed. Gold thrives off such uncertainty" said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch.

"$700+ is still our target by years end, if not even higher. Individuals who were kicking themselves the last time gold ran to $700 should take a long hard look at the buying opportunities in gold right now -- they may not last."

---(see url for full news, 24-hr newswire)---

USAGOLD - Centennial Precious Metals, Inc.FIRST STRIKE! -- Have you been misled by other dealers?#1469048/23/06; 15:58:11

Especially in the wake of the new gold Buffalo bullion coin released recently by the U.S. Mint, many people have been phoning our staff with questions regarding "First Strikes" that they have been offered by other overly eager and aggressive gold dealers at other firms.

After answering the same question time and time again in an attempt to better inform our clientele, at our Bulletin Board we are very pleased to present the U.S. Mint's very effort to set the record straight and prevent citizens from being potentially preyed upon by the notion that they are being offered a "first strike" of products from the U.S. Mint.

= = = = = = = = = = = = = = = = = = = =
Consumer and Business Awareness
= = = = = = = = = = = = = = = = = = = =

"First Strike"

The United States Mint has received inquiries from consumers regarding use of the term "first strike." The term has appeared in connection with the advertising and grading of 2005 and 2006 silver, gold, and platinum proof and bullion American Eagle Coins, and the new 2006 24-karat proof and bullion American Buffalo Gold Coins. Currently, there is no widely-accepted and standardized numismatic industry definition of "first strike." Coin dealers and grading services may use this term in varying ways. Some base its use on dates appearing on United States Mint product packaging or packing slips, or on the dates of product releases or ceremonial coin strike events. Consumers should carefully review the following information along with each dealer's or grading service's definition of "first strike" when considering a purchase of coins with this designation.

The United States Mint has not designated any 2005 or 2006 American Eagle Coins or 2006 American Buffalo Coins as "first strikes," nor do we track the order in which we mint such coins during their production. The United States Mint held a launch ceremony for the 2006 American Buffalo Gold Coin on June 20, 2006, two days before its release on June 22, at which two proof coins and two uncirculated coins were ceremonially struck. However, those coins were not individually identified and were put in regular inventory after the ceremony. The United States Mint did not hold any striking ceremonies for the 2005 or 2006 American Eagle Coins.

The United States Mint strives to produce coins of consistently high quality throughout the course of production. Our strict quality controls assure that coins of this caliber are produced from each die set throughout its useful life. Our manufacturing facilities use a die set as long as the quality of resulting coins meets United States Mint standards, and then replace the dies, continually changing sets throughout the production process. For bullion American Eagle and American Buffalo Coins, the United States Mint makes an average of about 6,000 coins from one die set. For proof versions of the 2006 American Buffalo Coins, the yield is an average of about 1,500 coins per die set. For proof versions of the American Eagle Coins, the yield is an average of about 300-500 coins per die set. This means that coins may be minted from new die sets at any point and at multiple times while production of a coin is ongoing, not just the first day or at the beginning of production. To put this in context, in 2005 the United States Mint produced approximately 356,500 one-ounce gold, 8,891,000 silver, and 6,300 one-ounce platinum American Eagle Bullion Coins.

American Eagle and American Buffalo Coins are not individually numbered and the United States Mint does not keep track of the order or date of minting of individual bullion or proof coins. The United States Mint begins production several weeks before these coins are scheduled to be released. By the release dates for 2005 and 2006 bullion coins, the United States Mint had already minted approximately 50% of the projected sales numbers for these coins. Any dates on shipping boxes containing uncirculated bullion coins sent to Authorized Purchasers are strictly for quality control and accounting purposes at the United States Mint at West Point. The date on the box represents the date that the box was packed, verified as 500 ounces and sealed, and the date of packaging does not necessarily correlate with the date of manufacture. The date on shipping labels and packing slips for proof coins, which are sent directly to United States Mint customers from our fulfillment center, is the date the item was packed and shipped by the fulfillment center. The other numbers on the shipping label and packing slip are used to track the order and for quality control.
= = = = = = = = = = = = = = = = = = = = = = =

For the trustworthy and professional service you deserve, choose USAGOLD-Centennial Precious Metals as your gold brokerage!


Sierra MadreSILVER MONEY IN MEXICO - NEWS#1469058/23/06; 16:12:48

FWIW - The Catholic Church has given its implicit support to the idea of monetizing the silver coin. One of the supporters of the idea, Jose Alberto Villsana, has written a booklet (in Spanish) with the title: "The Return of the Silver Coin, as just and honest money, as seen in the light of the Social Doctrine of the Church".

The preface is by Bishop Talavera, and there will be a public presentation (September 28th) of this booklet by Bishop Aguiar, who is secretary of the Mexican Conference of Bishops which includes all bishops in Mexico.

This booklet includes quotes from Eric Englund, Douglas Gnazzo, Rep. Dr. Ron Paul and Eustace Mullins.

To my knowledge, this is the first time that the Church takes a look at the injustice and fraud of fiat money and advocates real money as just and honest.

The silver issue is alive and well in Mexico.


MKSierra Madre#1469068/23/06; 16:21:09

I would be very interested in "The Return of the Silver Coin, as just and honest money, as seen in the light of the Social Doctrine of the Church". Will an English translation be available? I believe you are right. I have not seen a tie between church doctrine and monetary policy and would be interested in how the ties are made from a philosophical point of view.

This is definitely something for Invisible Hand as well, it would seem.

mikalSharia in the UK#1469078/23/06; 16:46:44,,1856456,00.html

Bank Pioneers Islamic Student Account | Sandra Haurant |
Wednesday August 23, 2006 | Guardian Unlimited
Lloyds TSB has become the first UK bank to launch a student account specifically for Muslim undergraduates.
The account adheres to Islamic shariah law, which says that no interest can be paid or received on money and bans investment in certain industries such as alcohol or gambling.
In accordance with these rules, money held in the accounts will be kept separate from other funds in the bank, which may be invested in unsuitable areas, and the account will not pay interest on credit balances, paid at 0.1% on standard student accounts, or charge interest on debit balances.
Aside from these differences, account holders will have the same benefits as students with standard accounts. These include an interest-free overdraft of £1,500 for three years, which will rise to £2,000 for those on longer courses.
A spokesman for the bank said the account was designed for people who were not planning to borrow more than the interest-free amount, and that people going over their overdraft limit would incur the same penalty fees as students with the standard account. This is a £30 charge capped at £90 each month.
Account holders will also receive a free iPod shuffle and one year's free membership with the Youth Hostel Association.
Paul Sherrin, head of Islamic Financial Services at Lloyds TSB, said: "This student account is the first to be designed with Muslims in mind. Britain's two million-strong Muslim community is as young as it is fast-growing, with more than half under the age of 25, and of course many of these are studying.
"Until today, however, young Muslim students have had no choice but to go against their beliefs by opening traditional bank accounts. By providing a real alternative that meets their financial and religious needs, we have made it possible for them to enjoy campus life without compromising their faith."
In June, Lloyds TSB made a bid to attract more Muslim customers when it made shariah-compliant home loans and current accounts available from all its UK branches. A spokesman for the bank said that more shariah-compliant products were in the pipeline."

Hard tangible assets are integral to sharia law and spoken and unspoken tradition in most of the world.
This actions by Lloyd's is a major part of an evolving trend that recognizes tradition and culture, like precious metals, that could rejuvenate economies and societies at every level.
Especially relevent today where more focus is
needed on the nature of investments and their consequences, and as havoc wrought by fraud, usury and their offshoots becomes more apparent by the day.

GoldiloxCatholic Silver vs. Islamic Gold Dinar#1469088/23/06; 16:46:50

It would seem the "protectors of the faith" are beginning to turn on their FIAT benefactors.

Next thing you know, they'll turn down tithes from drug cartels.

Naw, I'm kidding.

melda laureJamas vencido, tu dinero esta podrido.#1469098/23/06; 16:50:53

other comments by said person from earlier in the year.

If you google his name, you may be able to click on the translate button... vuestra merced, senior Kosares, disculpe este discurso automatico... not sure if pasting that link would work, but here goes:

Sierra MadreA translation MUST be made of the silver booklet just mentioned#1469108/23/06; 17:29:56


Thank you, Sir, for your interest! I shall translate this potentially very important booklet into English, and advise you when it is ready.


GoldiloxSInclair's thoughts on the Strange $ trade#1469118/23/06; 17:30:13


You can split all the hairs you want but today's market action was simply dollar short covering. The dollar recovery from Fib support to Fib resistance yesterday scared the hell out of the short side traders. Today they saw a cover opportunity at a slight-to-no loss and took it. The resulting 72 minute dollar rally filtered into gold. Crude oil also filtered into gold but as always it is the dollar that rules. After 72 minutes of short covering in the US dollar, the next 252 minutes to the US close saw the dollar resume it's super slope trading action.

Fed President Moskow can jabber about being an interest rate hawk all he wants but housing figures put egg on his face today.

The US economic recovery has been rolling over for a godly period of time. Yes wars make for good business. The only way the bottom will fall totally out here and now is if there is a terminal financial accident. Such an impending accident is more likely to cause an explosion in monetary liquidity than anything else.

The "Formula" as it acts on the dollar means it is doomed. When doom occurs is not years, but months away. It could be tomorrow but there is still some fight in the plastic Livermores of the government at the NY Fed Bank trading desk and Exchange Stabilization fund account with major international investment houses.

We are headed this coming month for a choppy gold price with strong rallies cut short and occurring again as we move into the fall.

Before frost is on the pumpkins I believe the $682 gold price magnet will be behind us.

Sierra Madre"Catholic" silver? "Islamic" dinar?#1469128/23/06; 17:32:47

It is well to recall Voltaire's words:



GoldiloxMogambo Rant#1469138/23/06; 17:45:33


So, I patiently and kindly explain, as I always do, "Go to hell, you greedy little bastards! I make the same money I made twenty years ago! But somehow it's MY fault that the damned Federal Reserve provided the financing for insane amounts of government spending, and so it's MY fault that all this monetary madness of mountains of money and debt ballooned into price inflation, as it always freaking does?"

Oh, I know by the blank, confused looks on their faces that they will not listen to the Big Stupid Mogambo (BSM), no matter how loudly I yell or how many frozen waffles I throw at them. Or you either. But perhaps you, and they, will listen to Dallas Federal Reserve Bank president Richard Fisher, who has neither a loud voice nor a supply of frozen-waffles-as-missiles handy, but is reported by Reuters to have said that inflation "is a sinister force that has the capacity to charm and romance the heck out of you, but in the end wreaks only havoc." Atlanta Fed President Jack Guynn says that inflation is "poisonous." Exactly so!

Perhaps this is what prompted reader Rebecca I., probably in an oblique reference to my many rat-like qualities, to pen the perfect analogy to Mr. Fisher when she writes "I equate fiat currency like a mouse trap. The easy credit and instant gratification it gives you is the bait. The bar that is sprung when the bait is taken is called inflation. As we munch on the bait, the spring has been sprung and we ignorantly wait for the bar to fall."


I haven't seen a angry Mogambo rant posted here in a while, so . . .

Flatliner, this is more likely what happens to the "little guy". Trap sprung, serfdom revitalized. And to make it worse, the medis shills, who drool at every word uttered by the mon[k]eyed aristocracy that supports their "hallowed shilldom", will blame the worker, his unions, his "benefits", and his "spending habits", as if survival were a "dirty word". The fact that savings is negative, is NOT a voluntary condition, when people use RE ATMs to buy gas, groceries, and pay for luxuries like medical insurance and mandatory auto insurance.

This is not going to end "nicely" for the "little guy".

GoldiloxMoney & religion#1469148/23/06; 17:56:52

@ Sierra Madre,


MKSierra Madre#1469158/23/06; 18:26:54

Thank you, kind sir. I will look forward to the translation. Religion, if nothing else, should have something to do with morality. Needless to say, if an important grouping within a major religion (in this case the Catholic bishops of Mexico), is attempting to tie monetary policy to a set of morals that is something of more than passing interest to me -- no matter which religion that group represents. If for no other reason than the moral authority the great organized religions carry with their adherents. That can't help but influence public policy, if no where else, than among intellectuals who will be forced to take a look. This is an interesting development.
Chris PowellAustralia's national newspaper cites GATA and BIS' confession to suppressing gold#1469168/23/06; 18:59:21

Golden Opportunity for Conspiracy: The New Gold Rush

Gold prices don't always conform to expectations, leaving room for some wild theories, Robin Bromby reports

By Robin Bromby
The Australian, Sydney
Wednesday, August 23, 2006

As if a seemingly insoluble situation in Lebanon, Iran on the verge of nuclear capability, oil at more than $US70 a barrel, and inflation barking at our doors wouldn't be enough to keep propelling the gold price.

And don't get us started on whether paper currencies have any real value or, with the U.S. Federal Reserve and other central bankers resorting to the printing press to keep the economic party going, the only true currency and ultimate repository of value is gold.

Then, as icing on this cake mix, comes the news of a plot by British-born Muslims to blow up airliners in the mid-Atlantic.

What does gold do? It goes DOWN, that's what, by $US16 an ounce.

Now the obvious explanation for that day's gold price was that oil went down and the U.S. dollar strengthened.

After all, that is the way the long-established inverse relationship between the yellow metal and the greenback is supposed to work.

But there are those who have their suspicions about the gold price and the degree to which it is manipulated, not just by hedge funds but by central banks.

Among the theories: Fort Knox is empty, the Americans having secretly disposed of all their gold. Otherwise, why does the U.S. government resist calls for a gold audit?

Another one: The European central banks, apart from the official sales we all know about, have also lent out most of the rest of their gold.

The conspiracy crowd latched on to a disclosure in 2001 that the Bank of Portugal had lent or swapped 70 percent of that country's gold reserves.

The nub of the conspiracy theory is that the central banks simply don't have the gold they claim to own.

In the 1990s they sold or leased out the gold, creating massive short positions. The counterparties have sold that gold and the central banks have no show of ever getting it back.

Best to keep the gold price low, then, and make out that gold is nothing more than a barbaric relic, with no intrinsic worth.

The problem for this theory is that the gold price did get over the $US700/oz mark this year, and there are respected analysts who believe it could make the $US1,000-plus level.

Why did the all-powerful anti-gold cartel, which also includes some of the world's biggest financial houses, allow that to happen?

The wild ups and downs this year could be explained by the activities, not of the central banks, but of the hedge funds.

After all, they are generally accepted as being the cause of much of the overheating, and corrections, in metals such as copper and nickel.

So, yes, there is manipulation, but nothing that we are not used to.

Interest rates are often aimed at influencing the markets (remember "irrational exuberance"'), and big traders do it to make money by influencing the market (remember George Soros making a pile betting against the Bank of England).

So you can use the tracking of the gold price to argue either way: The anti-gold cartel works to beat down any gains gold makes, or it's just the big hedge funds working gold to get profits in both price directions.

But, for all that, the moves have been pretty dramatic.

Gold on February 2, $US516.88/oz; on May 12, $714.80/oz; on June 14, $559.75/oz (that's a month on month drop of $US155); on July 14, $US664.15 (that's a retrace month on month of $US104/oz).

By July 24 the gold price had turned around and shed $US49/oz.

Sure, things changed in the world economy, in the Middle East, with the price of oil -- but not that much.

Last year at Basel in Switzerland the soon-to-be head of the Reserve Bank of Australia, Glenn Stevens, was among the many central bankers attending a three-day conference hosted by the Bank of International Settlements (BIS), the banker to the central banks.

William White, a senior BIS official, included in his opening remarks on the first morning of the conference some rather telling words about central bank co-operation.

One of the things central banks could do, he pointed out, was to get together for "the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful."

Was this a smoking gun?

The commentators at ("dedicated to the fight for sound constitutional money") thought so when the minutes of the conference were released recently by the BIS. They pointed to the constitution of the International Monetary Fund, which specifically rules out managing or fixing the gold price.

Moreover, the BIS is the banker to all those central banks that keep cranking out more and more paper money; that the crowd in Basel can't afford to have people thinking that gold is the only real basis of money is the view at The Golden Sextant.

The BIS was the target back in 2000 by the Gold Anti-Trust Action Committee, set up by a financial commentator and a Connecticut newspaper editor.

GATA was born in 1999 and raised enough money from the gold conspiracy believers that it took the BIS to court in Boston to try to prise open the details of the suspected collusion.

That case failed, but the fight goes on.

Gold's recent price rises have done nothing to dent the conviction of the gold conspiracy adherents.

donnemuirReligion & Money translation..Sierra Madre#1469178/23/06; 19:50:11

I too would be interested in subject pamphlet and more than willing to compensate you for your efforts.
The Invisible HandSome don't understand the gold transition debate.#1469188/23/06; 20:21:43

This past week, the investment world witnessed an event that has only occurred rarely in the past. I am referring to the extraordinary developments in the nickel market on the London Metals Exchange (LME), the largest base metals exchange in the world. Due to an unprecedented scarcity of metal, the LME was forced to revise the delivery terms of its nickel contracts. In return for allowing short sellers to delay delivery of metal, a daily penalty fee of around 1% of the contract value was payable by the shorts to long holders.
What good does it do an industrial consumer to hedge on the LME, if there is no assurance his contract will converge with the price of actual metal on the delivery due date? Without the delivery mechanism, there is no linkage between paper contract and actual metal.
CLEARLY, the UK regulators and LME officials waited too long to attack and resolve the short-side manipulation in nickel. If they had acted responsibly and forced the concentrated shorts to cease their manipulative activities, the delivery default might have been averted. Now it is too late in nickel, as the damage is done. Is it too late for silver?
I think there may still be time for the US regulators to act in silver and avoid a COMEX silver delivery default.


My namesake is again being denied its operation. It was up to the regulators, maintained alive with stolen tax money, to prevent the default, says Butler. GATA jubilates!

Common sense tells me this cannot be. Of course, in a market of crooks and criminals, supported by the tax parasites, there are no rules.

The present dollar system is a FINANCIAL system and is not dependent on the physical economy.

Entreprises have to derive their profits from financial manoeuvering (speculation) instead of deriving it from growing physical expansion

The Invisible Hand (8/23/06; 05:55:56MT - msg#: 146877)
switch from gradualism to radicalism
In 1984, Reagan discussed the Fed's abolition openly.
Volcker renounced gradualism. This is perhaps what we can again expect.
Today's exuberant financial markets are only a shadow of the economy. Not the economy itself.
This explains why policies have less and less effect on the economy and more effect on "Finance".
Analysts said the LME's move to limit daily cash premiums to $300 a tonne and allow investors to defer delivery may be attracting more metal into the market.

Do these analysts really think
-that this will attract more metal into the market?
-that once this new metal will have been attracted, entreprises will no longer have to derive their profits from financial manoeuvering (speculation)?
The temporary or permanently changing of the rules in the financial industry (COMEX) will not change anything.

That's why the price of gold (POG) could remain contained since 1971-1973.

Does the name of the Hunt brothers say you something in relation to the silver market?
When the Hunt brothers began accumulating silver in 1973 the price was $1.95 per ounce. Early in 1979 the price was about $5, and in 1980 the price peaked at $49.45 per ounce[1].
Once the silver market was cornered, outsiders joined the chase. As things heated up, the number of contracts being traded in a month equaled the total amount of silver available for delivery in the exchange warehouses, and many traders, including the Hunt Brothers, were taking delivery on their contracts. Members of the board at COMEX, many of whom had substantial silver short positions, moved to check this cornering of the silver market by lowering the number of contracts investors could hold, and raising margin requirements. The highly leveraged Hunt Brothers were unable to meet their margin calls, and were forced to sell. A combination of changed trading rules on the New York Metals Market (COMEX) that allowed only liquidation (sell) orders, and the intervention of the Federal Reserve to bail out the brothers put an end to the silver run. The price began to slide, culminating in a 50% one-day decline, known as Silver Thursday, on March 27, 1980 as the price plummeted from $21.62 to $10.80.
The collapse of the silver market meant huge losses for speculators. The Hunt brothers declared bankruptcy. By 1987 their liabilities had grown to nearly $2.5 billion against assets of $1.5 billion. Nelson Bunker Hunt declared bankruptcy and was convicted in August 1988 of conspiring to manipulate the market[2].

Some don't seem to understand much of the gold transition debate.

The LME gradualism will only lead to the radicalism of my namesake.

She has been restrained for too long. She will, to Butler's and GATA's disgust, come back with a vengeance.

The Invisible HandTurkish Daily News#1469198/23/06; 21:22:22

Whereas we turn our faces to the West, the Western countries try to extend their influence to Central Asia, the Turks’ fatherland. This region, which has been central to theories of world supremacy throughout history, is known as Eurasia
the United States aims to keep the peripheral states of Eurasia under its influence and prevent Russia from acquiring global power again. Within this context, by manipulating peripheral states such as Korea and the Philippines in the Far East and Germany and Poland in Europe, the United States strives to hinder Russia's dominance over Eurasasia

The Invisible Hand (8/20/06; 00:21:02MT - msg#: 146777)
Today, I'm Marxist
by William Norman Grigg
August 19, 2006
"During the cold war, U.S. imperialism was able to prevail by enlisting Maoist China, Japan and the European Union in an aggressive encirclement of the former Soviet Union," writes veteran Communist Party agitator Gerald Horne in the August issue of Political Affairs, the journal of the Communist Party USA. "Yet today [the United States] seeks to confront both Russia and China despite being debt-ridden and militarily overstretched in Iraq and Afghanistan."
In addition, "China and Russia have welcomed Iran into an organization little-known in this nation … the Shanghai Cooperation Organization," created by Beijing and Moscow in June 2001. Furthermore, "the twin giants of the 21st Century, China and India, have ambitious plans to buy stakes in Russian oil producers," and "Moscow is maneuvering to develop a natural gas equivalent of OPEC" — developments that position MOSCOW very well to be an ECONOMICALLY DOMINANT POWER as world energy markets tighten]


Wednesday, August 23, 2006
The Bundesbank reserves the right to reallocate some of its gold reserves into foreign currencies but does not plan to sell any to help overhaul Germany's public finances, Bundesbank President Axel Weber was quoted as saying.
Asked in an interview with German daily Bild on Tuesday why the Bundesbank had resisted calls from politicians to sell some of the country's gold reserves, Weber said: "We've never said that we don't want to sell gold in general.
Weber, who said the German [gold] reserves were worth 54 billion euros ($69.6 billion) at the end of July
In addition to the gold holdings, Weber told the paper that the Bundesbank held foreign currency reserves -- which included some in dollars and yen -- worth some 28 billion euros.


The WEBER article has a very strange title. This is all the more surprising if we realise that Weber spoke positively about Bundesbank gold.

Ladies and Gentlemen, this is the gold manipulators are trying to build perceptions, Butler and GATA then asking more regulation.

Fortunately, some people read the text and realise that the gold reserves of the Bundesbank (54 billion euros) are almost double its foreign currency reserves (28 billion euros)

The Eurasia article gives perhaps the reason why the US of A and the EU continue to collaborate.

By doing this,
the EU is trying to take advantage of the Pax Americana which is being built up
whereas if this Pax Americana would fail, the EU can always rely on its Freegold.

The EU will then use its Freegold to buy oil and gas.

It's that simple, n’en déplaise à Butler et GATA.

melda laureDe ruedas y monedas.#1469208/23/06; 23:09:16

a bit old perhaps. 11.28.2003
The New market economy. J. A. Villasana

you may have to google translate... linked below. Still haven't been able to find his latest work.

The Invisible HandHow to abolish the World Gold Council?#1469218/23/06; 23:52:58

and GATA by the same token
Monthly gold prices since 1971 in various currencies. Updated 7th August 2006
WGC commentary Monthly gold prices since 1971 in various currencies.
(MENAFN) World Gold Council (WGC) and owners of gold outlets in Saudi Arabia said that demand for gold and gold jewelry continues to fall across the kingdom, Arab News reported
Outlet owners at the main gold markets at Kandara and downtown Balad said that rising gold prices have been shying the consumers away from precious metal and jewelry.


Look at the very difference historical gold prices in different currencies.

Nevertheless, the WGC is saying that individuals in Saudi Arabia have less buying power and thus buy less gold.

What do Indians have to say?

According to the WGC so-called "statistics" less gold metal would therefore be bought.

And why do Saudi's have less buying power? Because of higher (more volatile) gold prices.

And what about the buying power of the lunatics who have gold in possession?

And what about the buying power of those who possess US of A stocks and US of A dollar (higher interest rates)?

And the buying of those who have oil revenues?

The MENAFN-article suggests that gold business derives all advantages from a lower price of gold as then more gold can be sold.

The WGC is continuing to view gold metal and paper gold as linked to each other and the dollar-regime.

The WGC is forgetting that gold is the competitor of the paper stock market.

The Atlases running the gold mines must continue to mine gold for razor thin profits, thereby sustaining the paper gold regime.

If they shrugged, the WGC and GATA would be swept out of existence.

melda laureJ. A. Villasana "The End of Globalization?"#1469228/24/06; 00:36:13

Far away from its particular beneficiaries, or its inevitable harm to soverignty and the masses, the problem of globalization, mostly thought to be primarily economical, is actually conceptually anthropological, and safeguards the primacy of the human person.

This wasnt a success of socialism. Nor did the liberal model able to sustain

The first denied the human right of private property. and resulted in a totalitarianism which cut the person down to his most basic rights. The second crystalized into a system characterized by private benefits and socialized costs. [ML comment: hmm where have I heard that before...]

What we have inherited intact was the ethics of materialism: globalization is good because it works, not because it is a good solution to humanity's needs.

By this axiom, the communities have had to go on accepting a process which gives priviledge to Finance over Society.

The centrality of the perosn, which in socialism was abused by the agency of the Protector State, was suffocated by Liberalism by market laws which began to protect the market against the good of the community.

In the socialist world, the primacy was not in human dignity regarding the subject of work, but rather in socialized benefits imposed by a system that denied the individual his basic rights.

In the Liberal world, which began withe the great depression of the 30's, we saw a new twist: Keynsian Capitalism and the monolithic "New Order" which Heinz Dietrich rightly called the "fourth Reich".

The numbers reveal how absurd it is to describe the Economy of the West as "free" commerce. In 20 of the 26 really industrialized countries have more protectionist measures today than 10 years ago. And close analysis of the process of globalization from the General Aggreement on Tariffs annd Trade (GATT) to the political measures of the Multilateral Accord on {Inversiones-?} (MAI) demonstrate that it is easier to to speak of Neutralizing action by the State, whose consequence is the reduction of government to a role of mere dependency, all the while the transnationals can obtain free access to regional markets and its cheap labor, monopolizing technology and world production under a strong international centralization plan. Commercial Transactions of the 350 largest companies of the world account for almost 40% of global commerce and this represents more than a third of the commerce of the United States. [ML comment: "your dollars not really worth what they say they are worth"]

None the less, not even that country has been freed from a process which has engendered enormous inequilibria between the haves and have nots: the middle class continues to decrease, unemployment continues to increase, actual productive activity is in dire straites and social services are insufficient to cover it.

Unfortunately the obvious solutions which some thinkers propose are almost never focussed on the root of the problem. Rarely is attention given to the grave deficiencies both philosophical, sociological and even economical which traditional doctrine presents. From totalitarian dirigisme, we went to Dogmatic Salvational Capitalism, without restricting exaggerated individualism, lack of solidarity, and over all, corruption and abuse which have been conducive to instability, intolerance and a new and worse devaluation of the person.

From thence, both new and old abuses of the person. Many systems have been imposed by force if that was needed. In the case of communism, we saw inprisonment in concentration camps of those unlucky souls who opposed the regime. In the new doctrine however, we submit whole communities to the fire if they resist "change" or globalization, as in Chechnia, or diplomatic sanctions by extraterritorial legislation as in the case of Cuba, or simply we impose macroeconomic schemes whose result is to directly affect the salaries, employment and wellbeing of the community.

The preoccupation of we who live in this new age is that the liberal system is now in a state as fragile as was socialism. This is now the conclusion of an increasing number of analysts which consider Wall Street to be the last wall to fall, practically predicting its much delayed and elusive downfall.

Many belived that economic liberalism had come to replace the errors of socialism, moreover, to impart of its aparent collapse. But in reality the dificiencies of various systems increased, whilst we were never able to rescue the centrality of the human person nor liberate ourselves of the reductionist tendencies which crept in during the post modern era.

The ones who rode this globalization perfectly were the bands of organized crime, who are today well entrenched in the US, producing immense corruption. Today, on earth, we waste vastly more on drugs and weapons than on food and clothing, with the paradox that those organizations are administered in clandestine fasion.

To a degree, Financial Imperialism was transformed by Narco Imperialism; money laundering cant be explained without recourse to circuitous financial models, any exceptions to this are insufficient to explain the money laundering.

It sounds scandalous, but that which at this time prevents the collapse of the world economic system are those same narcodollars which are generated by the same organization. It's proof enough to count the money.

Many thinkers and policy wonks are tossing around all sorts of ideas: some propose a new bretton woods, others ask the IMF to sell its gold assets, others want to conven a new non-aligned movement and even those who advance the initiative of creating a new Super World Bank to absorb the illiquidity of the various national central banks.

Its all so much aspirin: we find ourselves at a nexus and urge that the world economic system is reformd FROM ITS ROOTS, based on an anthropological concept that guarantees the centrality of the human person, and which globalizes solidarity.

That is, a system which promotes productivity, not speculations, nor clandestine profits; a system based on a solid money, and on parameters that take account of production and real risk; a system that beginst by favoring endogenic structures of the consumer; thus a system which considers the person, and not mere gain as the ultimate goal of all activity.

[ML "people act" profits are only a means to getting what you want]

This is where we are at present regarding globalization. Should we fail to resolve it, we will see liberalism pass into history as just another doctrine, among the many which were unable to solve the essential and primary problems of humanity.

hmm... vestiges of leo wanka, FOA/Another, and so on... Excuse my poor translation. This also was not the article I was looking for.

GoldiloxMore bonepiles#1469238/24/06; 02:18:01


Further signs of a weakening economy were seen last week as Ford announced last Friday that it would cut its 4th quarter production by 21% (168,000 units), temporarily shutting down plants in the U.S. and Canada. The company also announced that 3rd quarter production will be 20,000 units below its previous announcement and 78,000 units below last year. This will bring Ford's production to 9% lower than last year at just over 3 million units.

Chairman and Chief Executive Bill Ford said in a note to employees, "We know this decision will have a dramatic impact on our employees, as well as our suppliers," but that "This is, however, the right call for our customers, our dealers and our long-term future."

The Wall Street Journal, citing unidentified sources, reported Friday that Ford is considering shutting down more factories and cutting salaried jobs and benefits by 10% to 30%. Standard & Poor's Ratings Services and Moody's Investors Service both put Ford's credit ratings on review for possible downgrades further into junk territory.

Also last week, Boeing announced their plan to shut down C-17 cargo plane production at their Long Beach plant in California as Congress did not fund the new purchases. This decision is likely to affect thousands of Boeing workers and companies that supply parts for the C-17, with 5,500 Boeing employees in California, Missouri, Georgia and Arizona directly tied to the C-17 program. The decision will first hit the 25,000 employees of the nearly 700 companies in 42 states that supply parts and systems for the plane, Boeing said.


Not looking so rosy!

The Invisible HandVenezuela to substitute Iran#1469248/24/06; 03:39:28


Venezuelan President Hugo Chavez arrived in Beijing yesterday for a six-day visit. Today he will meet with Chinese president Hu Jintao and sign multibillion-dollar contracts for the delivery of oil to China, in which China will receive part of the oil that Venezuela currently supplies to the United States. This will allow the CHINESE GOVERNMENT TO PAINLESSLY WITHSTAND A POSSIBLE LOSS OF IRANIAN OIL and will be key to the country's energy security net. Backing up the China-Venezuela geopolitical tandem will be Moscow, which is actively supplying Hugo Chavez with Russian weapons.
The Chinese government's latest deals have prepared China to painlessly ride out a possible cut in oil supplies from Iran and the Persian Gulf states. As Mikhail Krutikhin, a partner at the consulting company RusEnergy, told Kommersant, "if Chavez really extracts such volumes of oil, then the REORIENTATION OF OIL EXPORTS FROM THE US TO CHINA is highly probable. And if the Panama Canal will be able to allow tankers with displacements of 300,000 tons, then Venezuelan oil will not only replace Iranian oil for China, but also may turn out to be even more competitive than Russian oil."


In my dictionary, this means that oil will stop flowing from Iran because the friendz will attack Iran.

Of course, this about a REORIENTATION
since the reorientation has been DENIED.
the Venezuelan government have denied […] that a calculated curtailment of exports to the United States is in the works.

GoldiloxUSDX#1469258/24/06; 07:57:19

More gaps than the Mexican border!
The Invisible HandC'est la lutte finale! (Internationale in Spanish)#1469268/24/06; 08:04:54



As evidence of the still-dangerous explosive potential of the situation in Southwest Asia, Vremya displayed the headline of Steinberg's article, with the EIR logo, while reporting, "The American weekly Executive Intelligence Review writes about the plans of the White House to draw Syria into the conflict and, through it, Iran, which has a mutual assistance treaty with Damascus.... According to their information, the American administration is planning to provoke war between Syria and Israel in October. The plan would involve the planting in Syria, by special forces, of some weapons of mass destruction, which would then 'accidentally' be discovered by Israeli soldiers during an intervention."
by Lyndon H. LaRouche, Jr.
August 2, 2006
The renowned psychoanalyst Bruno Bettelheim once explained, there are some slaves who, then as now, regarded their chains and rags as ornaments to be worn with pretense of pride. Today, the slavish mind says, "Since the system will never change, we can only influence our slave-master (the predators controlling the Democratic Leadership Council or others), by trying to influence that beast from beneath, and take his donations of faith-based-initiatives money when we can." Therefore, now is the time for currently leading political figures of much of the world to stop repeating the silly sophistries of the idiots whispering at their elbows, and, instead, to face the reality of the current global situation.
Consider the following puzzle:

LARouche's thoughts on Lebanon ask the question of small children and big philosophers; WHY?

The increasing global "confrontation" instead of global "cooperation" should indicate that some want to threaten all international systems including the dollar-international monetary and financial system. The stress being laid on privatising globalism.
Hence, La Rouche's aversion of Rohatyn.

It is clear that there are, for LaRouche, at this moment no counterpowers which represent anything. When one realises that nobody wants to oppose the lack of cooperation, the absurdity of the situation becomes clear.

LaRouche would be better advised to draw attention to the Paulson phenomenon. This phenomenon is the financial oligarchy coupled to a financial dollar capitalism that is being destroyed by its own systemic imbalances.

At the end of the day, this de facto evoluton will, without doubt influence gold's role in the present transition. Since such a world (fis-) order always result in the revolution of the oppressed (80%) who always have more reason to



DruidMexico Approaches the Combustion Point#1469278/24/06; 09:02:29

Druid: Enjoy the read.


Mexico City.

The Congress of the country is ringed by two-meter tall grilled metal barriers soldered together apparently to thwart a suicide car bomb attack. Behind this metal wall, 3000 vizored, kevlar-wearing robocops -- the Federal Preventative Police (PFP, a police force drawn from the army) -- and members of the elite Estado Mayor or Presidential military command, form a second line of defense. Armed with tear gas launchers, water cannons, and reportedly light tanks, this Praetorian Guard has been assigned to protect law and order and the institutions of the republic against left-wing mobs that threaten to storm the Legislative Palace -- or so the President informs his fellow citizens in repeated messages transmitted on national television.

No, the President's name is not Pinochet and this military tableau is not being mounted in the usual banana republic or some African satrap. This is Mexico, a paragon of democracy (dixit George Bush), Washington' third trading partner, and the eighth leading petroleum producer on the planet, seven weeks after the fraud-marred July 2 presidential election of which, at this writing, no winner has been officially declared. One of the elite military units assigned to seal off congress is indeed titled the July 2 brigade.

MEXICO ON A KNIFEBLADE headlines the British Guardian, but the typically short-term-memory-loss U.S. print media seems to have forgotten about the imbroglio just south of its borders. Nonetheless, the phone rings and it's New York telling me they just got a call from their man on the border and Homeland Security is beefing up its forces around Laredo in anticipation of upheaval further south. The phone rings again and it's California telling me they just heard on Air America that U.S. Navy patrols were being dispatched to safeguard Mexican oil platforms in the Gulf. The left-wing daily here, La Jornada, runs a citizen-snapped photo of army convoys arriving carrying soldiers disguised as farmers and young toughs. Rumors race through the seven mile-long encampment installed by supporters of leftist presidential challenger Andres Manuel Lopez Obrador (AMLO) three weeks ago who have tied up big city traffic and enraged the motorist class here, that PFP robocops will attack before dawn. The campers stay up all night huddled around bum fires prepared to defend their tent cities.

The moment reminds many Mexicans of the tense weeks in September and October 1968 when 12 days before the Olympic Games were to be inaugurated here, President Gustavo Diaz Ordaz ordered the military to massacre striking students in a downtown plaza not far from where AMLO's people are now camped out. 300 were killed in the Plaza of Three Cultures, their bodies incinerated at Military Camp #1 in western Mexico City. The Tlatelolco massacre was a watershed in social conflict here and the similarities are sinister. In fact, Lopez Obrador has taken to comparing outgoing President Vicente Fox with Diaz Ordaz.

Fox will go to congress September 1 to deliver his final State of the Union address. The new legislature will be convened the same day. The country may or may not have a new president by that day.

mikalThoughts on gold, inflation and the dollar#1469288/24/06; 09:07:39 Richard Russell - 'I Believe The Dollar Is Doomed' - 8-23
USAGOLD / Centennial Precious Metals, Inc.You are invited to join the NewsGroup... see what you've been missing!#1469298/24/06; 12:33:49">join the newsgroup
GOLD FINGERThe dark days of the $$#1469308/24/06; 13:22:08

Greetings....hope your having a golden day.....

The URL you posted about the $$ is exactly how I feel and it's a shame we can't find another TRUE "SUPERMAN" who could deal with our country's image and how the rest of the world sees us. The dollars fall with be the gold bugs gain!

SHAME>>??>WHAT SHAME?? Good or Bad...?

REF:mikal (8/24/06; 09:07:39MT - msg#: 146928)

Again, Many thanks to everyone who adds a comment and takes the time to post. Political, religious, or controversial...this is all good to me. I would rather be in the know.....instead of the not like some who IGNORANT!!

Need I really point any "GOLD FINGERS" here??


melda laureJ Alberto villasana's papers.#1469318/24/06; 13:26:26

I went looking for that document by Jose Alberto Villasana but could find no mention of it. He has several articles on Hugo Salinas Price's website, Plata.mex, and he speaks of most of the things that have been discussed here over the years including the situation mexicans face (similar to europe, though without a euro). My poor translation of his "end of globalization?" paper was posted earlier. One of the other sites you can read his papers at is a general site on Catholic issues, moral discussions and so on. He was also the author of a book on the assasination of that bishop that was gunned down at the TJ airport some years back as I recall.

USA-GOLD and other US gold fora appear linked on Hugo's site. It is an international problem. The globalization paper doesnt mention gold explicitly but does point out that the world economy is broken. In other articles he advocates physical coins as an insurance policy and eventually as a free-market solution to inflation prone paper/digital currencies.

USAGOLD Daily Market ReportPage Update!#1469328/24/06; 14:13:40">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

August 24 (from MarketWatch) -- {Ed. note: there will be no update to this page Friday August 25th due to travels}

Gold futures closed slightly lower Thursday, with the U.S. dollar turning higher in the wake of mixed durable-goods data and a fall in new-home sales. New orders for U.S.-made durable goods fell 2.4% in July on a big decline in orders for transportation goods, the Commerce Department said Thursday. But excluding the 9.6% drop in transportation goods, durable-goods orders rose 0.5%, the 10th increase in the past 12 months.

Sales of new homes dropped 4.3% in July to a seasonally adjusted annual rate of 1.07 million, the Commerce Department said Thursday.

Inventories of unsold homes rose to an 11-year high, while median prices flattened out.

Against this backdrop, the dollar erased earlier losses to trade up 0.1% against the yen and up 0.1% against the euro, which helped lean on the price of gold.

COMEX December contracts settled down $4.50 at $628.50.

"Just as the euro/dollar has been stuck within a rather small range for these past several weeks, and has become stuck in an even tighter range in the past several days, so too gold," said Dennis Gartman, editor of The Gartman Letter.

The metal is encountering strong resistance at the $628-630 level, but equally strong support at the $619-621 range and that's unlikely to change in the near-term, he said.

"Barring some wholly unforeseen political and/or economic news in the next several days, it is entirely possible... indeed it seems rather likely... that gold shall remain stuck within this range until the trading population returns to more normal levels in early September as European traders return from the long August holiday period and as North American traders return from the U.S. Labor Day holiday."

---(see url for full news, 24-hr newswire)---

Chris PowellExchanges see gold's monetary role growing#1469338/24/06; 14:46:14

But is 24-hour electronic trading meant
mainly to bury gold in more paper contracts?

* * *

Nymex Offers to Pay Gold Traders
$275 Million to Support Move Online

By Matthew Leising and Ann Saphir
Bloomberg News Service
Thursday, August 24, 2006

Nymex Holdings Inc., owner of the world's largest gold futures market, plans to pay members who trade metals about $275 million in stock to win their approval of around-the-clock electronic trading, three people with knowledge of the proposal said.

Nymex had been negotiating for months with metals traders to allow electronic transactions while the open-outcry trading floor is open. The members resisted the switch on concern that it would reduce their income. Nymex wants to act now because the Chicago Board of Trade's share of the 100-ounce gold market rose to 48 percent this month from 10 percent in December.

"The Chicago Board of Trade has now driven the Comex kicking, biting, and screaming into the 21st century," said Keith Bronstein, president of Chicago-based Tradelink LLC. "There is a consciousness at exchanges that gold is going to be a continually growing market because of its role as money."

The Nymex board voted two days ago to authorize the payment of 8,400 Nymex shares, worth about $386,400, to each member of the Commodity Exchange Inc. division where gold trades, according to the people. In return, the 712 Comex members will allow Nymex to offer electronic trading of gold futures during the U.S. day.

The vote followed a similar decision in April that put the Nymex's energy contracts on the Chicago Mercantile Exchange's Globex electronic system. That agreement came after electronic trading on the Intercontinental Exchange Inc.'s ICE Futures took market share from Nymex's benchmark crude oil contract.

Nymex spokeswoman Anu Ahluwalia declined to confirm or deny the vote.

The Comex payments must still be approved by the Securities and Exchange Commission and members of both the Nymex and Comex. Nymex members will probably vote on the plan as soon as possible, two of the people said, declining to be identified because the vote hasn't been made public.

Nymex Chief Executive Officer James Newsome, who is preparing for an initial share sale to the public this year, wants to offer daytime electronic metals trading on Globex to stem gains made by the Board of Trade, which began offering a contract identical to Nymex's in October 2004.

With gold touching a 26-year high in May and trading surging to records, the stakes of a battle over futures tied to the precious metal have multiplied, David Meger, senior commodities analyst at Alaron Trading Corp. in Chicago, said in an Aug. 3 interview.

"With the Board's new electronic contract out there, everybody is fighting for a piece of the bigger pie," Meger said.

Nymex shareholders are allowed to trade their shares, which are not yet offered to the public, among themselves. The shares went for $46 each as of Aug. 18. Based on that price, the payment to Comex members would be almost double the $157.1 million in sales Nymex Holdings reported in the second quarter.

ICE Futures, owned by Atlanta-based Intercontinental Exchange Inc., broke Nymex's monopoly on U.S. oil futures trading in February, when it began offering an electronic version of the contract. ICE now accounts for more than 30 percent of daily volume in the U.S. oil futures market, though trading in Nymex crude has increased over the period.

The move by Nymex to put Comex contracts on the Chicago exchange's Globex system might be too late, Bronstein said.

"It remains to be seen how many gold-trading platforms we need," said Bronstein, who uses both markets to buy and sell gold contracts. "After the Comex transitions to the CME, the Board of Trade will still be the superior gold-trading platform."

GoldiloxRE slow-w-w-w down#1469348/24/06; 18:10:58


All Things Considered, August 23, 2006 • New home-sales figures show sales of existing homes falling in July, to the lowest level in two and a half years. The report from the National Association of Realtors shows the biggest declines occurring in the West and parts of the Midwest. Inventories -- or houses on the market, but not yet sold -- are up sharply.

Overall, sales are down 11 percent from a year ago. That decline in the number of sales has analysts concluding that some areas are in for major price declines in the months ahead.

"Sellers are refusing to bring their prices down," says economist David Lereah. "Buyers are just not nibbling, so sales are dropping dramatically all across the nation."

That impasse between buyers and sellers is what lead to a big increase in the number of homes on the market last month. Inventories of unsold homes climbed to a 7-month supply, meaning that it if homes continue selling at their current pace, it would take that long for demand to catch up.

Lereah says as a result, some sellers may have little choice but to bite the bullet and take less for their house.


Sellers will hold for a while, just like they do with stocks that are retreating. Once they realize that there is no "bounce" just around the corner, there will be a glut of property owners trying to get out from under the oppressive mortgages they accepted to "get in" while the market was hot.

Ten BearsMath, philosophy, science, history, and economics#1469358/24/06; 20:41:55

according to Lyndon Larouche:

The reality of the way in which the recent thirty-five-year wrecking of the system of so-called "protectionist measures" has bankrupted what had been, into the late 1960s the most powerful economy the world had ever known,
There have been four outstanding aspects of the way in which deregulation has virtually destroyed the U.S.A.'s economic stability today: 1.) The Nixon use of a flight into the disease of "Friedmanism" as a prelude to the wrecking of the world monetary-financial system through the breakup of the Bretton Woods system; 2.) The massive deregulation conducted under the 1977-1981 Carter Administration; 3.) The post-October 1987 lunatic binge ("financial derivatives") of Federal Reserve Chairman Alan Greenspan; and, 4.) The sheer economic-financial lunacy of the Bush-Cheney Administration. These are not the only important factors, but they have been the most crucial among the blunders of U.S. policy over the 1968-2006 interval to date.

The underlying common feature of these and related, ruinous measures can be summed up in one word: "deregulation."

Under any continuation of those trend-features of that 1968-2006 interval, the U.S. is doomed to not merely a new world depression, in the sense "depression" was understood in the Europe and Americas of the 1930s, but the more calamitous form of a general breakdown-crisis of the present world economic-financial system.

The pivotal issue is the need to put the U.S. banking system, the Federal Reserve System, into bankruptcy, under U.S. Federal Government receivership. Much of the paper involved, including current mortgage values, financial derivatives obligations generally, and so on must be savagely discounted, or simply discarded as financial derivatives must be. However, this means that the U.S. Federal Government must intervene to keep the doors of the banks open, and their functional role in maintaining the current level of physical economic support of levels of employment, production, and essential services, while also serving as a conduit of long-term Federal credit at rates of 2% simple-interest, or lower, needed to stabilize impaired banking institutions and also stimulate growth of employment and output to national and regional levels above break-even.

That is not "socialism," contrary to the reckless babbling of some. Indeed, solid economic conservatives of the 1950s would have called this a change back to a "fair trade" policy, as an escape from the syphilis-like effects of recent decades' whorish dalliance with a street-walker's sort of "free trade" policy.

The man has a way with words.

mikal@Ten Bears#1469368/24/06; 22:46:02

Rex 84: FEMA's Blueprint for Martial Law in America
Allen L. Roland | August 20, 2006
Instead of a depression, LaRouche expects "the more calamitous form of a general breakdown-crisis".
If so, a state of emergency and/or martial law would be implemented aided by numerous Executive Orders and Presidential Decision Directives already codified as law,
as stated here numerous times and in the article, in additon to the premptive activation of local
guardsmen and law enforcement agencies trained under recent Homeland Security anti-terrorist programs.
Best be prepared with the motto "live free or die".
Under "martial law", your family and mine will have no rights or sanctity in the wild and random waves
of that social/economic/military tsunamni.

mikalRoubini: Pessimist or Realist?#1469378/24/06; 23:14:14 Coming Recession Will Be Nastier Than 2001's, Economist Says - MarketWatch - Rex Nutting - August 23, 2006
GoldiloxLarouche#1469388/24/06; 23:56:04

@Ten Bears,

Yes, Larouche is glib, and I do not quibble with his four major concerns.

I wonder, though, why corruption is not on his list.

Case in point:

I recently posted exerpts from the FEMA report that suggested one of the 1/2 $Billion dollar New Orleans cleanup contractors (no bid, of course) ate over half the money in admin costs, and passed the job on five more times until the final work was done for 14% of the original expenditure.

Now the local NO parish has decided to refuse further federal cleanup "grants" and hire local workers at an even less expensive rate, so they maintain some oversight.

We all know this behavior is rampant in the "conquest" industry, as well, so why do pundits not focus on this incredible under-the-table waste as a disease of the current systemic implementations?

Catherine Austin Fitts unearthed a $TRILLION in HUD waste, and was blackballed for doing so, spending ten years in crooked courts defending herself from the absconders. Of course, that's a lot milder treatment than MLK got for speaking out against HUD corruption in Atlanta.

It's not the system that is rotten, but the organized crime that has wrestled control with their off-budget Narco-arms rackets and casino securities policies.

Of course they're protecting us! They've run the "protection rackets" for generations, and now their infamous one-armed bandits decide our elections, too. Is it any wonder that they are "holding" every penny of their $400M MNF telethon booty to fund the Donald's New Orleans casino? They've even engineered Kelo vs. New London to make sure no one can challenge their private form of "urban renewal".

GoldiloxStraight talk#1469398/25/06; 00:06:20


Today the "Wag the Dog" spinners called out William Ford, the former president of the Atlanta Federal Reserve Bank to speak HAWKISH words concerning rising interest rates to further assist the dollar. So far we have had Moskow and Ford in two days implying rates will rise. Tomorrow Bernanke is speaking so the traders feel that play will follow the lead of Moskow and Ford and therefore bull the dollar on rising rates. We will see as the driver of the US economy for the past five years, housing, rolls over hard on the downside. Remember when auto sales drove the US economy, then housing all against a background of consumerism gone wild? Well it is all rolling over which will trigger the FORMULA and cream the dollar. It does not take a business crash to cream tax receipts, just a roll over as all businesses are highly leveraged.

The dollar game is now which economy stinks more than the other stinking economy to value currencies. Differential interest rates are now practically over since that game is also quite worn out.

The Durable Goods report was heralded as strong of course after backing out transportation because it was a loser just about the time Ford was dragged out to speak of higher rates. Of course the markets fall for it.

The spin on Durable Goods is akin to saying things are getting better for the Las Vegas gambler who only lost $100,000 this weeks after losing $150,000 the week before. Obviously his abilities are improving significantly.

You have to love the spin on US consumer sentiment.

"U.S. consumer sentiment slipped in May - Reading was slightly better than economists' forecasts"

However we should always respect the market that has taken the bait of the continuous 'Wag the Dog" media. Maybe we should all wear aluminum foil on our heads so the media can't suck our brains out.

Gold has good support at the most recent low and about four more weeks of failed rallies. Four weeks from now a bear trap of world class proportions will have been set and when it slams shut the action on the upside will curl your hair.

Let the Fibonacci and IBD over sold/bought lines guide the traders and 1/3 buy/sell for aggressive investors. You will do just fine.

Refer to the Green Doctrine and to the Formula, all of which will be proven totally correct this Fall.

Thanks to Trader Dan's technical investigative talents you will see the IBD clones every evening. I will repeat the Green Doctrine and Formula every Friday to remind you.

I made the put offer not to demonstrate madness, but to declare to you my confidence in my outlook for gold. I have absolutely nothing to gain by that overture and can only lose if I am wrong. I gain nothing if I am right. I only gain the satisfaction of once again holding your hand when the pros would pick your pocket as that is how they make their living.

My job is to stand repeatedly in front of the charge of the Lemmings. I get a lot of little footprints on my forehead as the dust clears time after time. I yell HALT and thousands of Lemmings knock me down and trample me in their desire for self destruction. Come on – think. Stand firm and reap the profits.


While the PPT expend much "political capital" to present the facade of "Goldilocks economy", Sinclair and others believe they will not succeed.

GoldiloxWorldwide gold mining picture in trouble#1469408/25/06; 06:53:32


The Chairman and CEO of International Royalty Corporation Thursday did not disappoint the enthusiastic crowd of his peers as he warned the "worldwide gold picture is in trouble." Developing nations want considerably more than companies who mine and run, and the lack of new discoveries is accelerating the mining merger frenzy.

In his other role as founder of Balfour Holdings, Colorado-based Silver has earned a reputation for being one of the foremost U.S. experts in international mineral appraisals, and strategic planning research for mining companies.

The good news, Silver declared to his fellow geos, is "that it's a great time to be running a junior" as junior miners and explorationists are easily raising $1 billion-plus in funding and $30 million to $40 million in cash from financial markets. As a lot of new gold bugs put their money into the markets, Silver remarked that it provides "a wonderful opportunity to grow your company.


Not much new here, but a good synopsis of the risks ahead.

GoldiloxNY Open#1469418/25/06; 06:58:50

Pretty strong PM sell-off at the bell, bith buyers moving in soon after, especially in gold.
Clink!Kelo vs New London#1469428/25/06; 07:29:51

Like many stories, this one hit the headlines but the media in general has been less than diligent about much follow up at a national level. Obviously, the subject of official confiscation of private property is of major concern to goldbugs. The URL above gives quite a long summary of some of the subsequent happenings, but I thought a few highlights might be of particular interest.

Snip :-
There is apparently something in public opinion--not to mention, the political system--which resists elevation of any specific fact in the process of reforming eminent domain. The reason appears to be the daunting questions--and their implications--which instantly arise once that is done, for example:

1. If housing is elevated in scrutiny with respect to eminent domain, what is the logic of restricting that elevation of housing to eminent domain? Why not elevate the level of scrutiny for housing in the contexts of zoning, taxation, and any other health and welfare regulation?
2. If housing is elevated in scrutiny with respect to eminent domain, what is the logic of restricting the elevation of the level of facts in the eminent domain context, to housing alone? [Good question !! C!]
3. If housing is elevated in scrutiny with respect to eminent domain, what is the logic preventing, say, the elevation of the level of scrutiny for education in the context of taxation? of medical care in the context of zoning? and so on. ["National interest", say. C!]
The questions proliferate--and so does their profundity--the moment eminent domain is even touched. The public appears not yet ready to confront those questions. The hesitation has led to eminent domain reforms which arguably do not reform eminent domain. Nevertheless, as commentators have pointed out, even twenty years ago eminent domain did not arouse public ire. This means that there has been some sort of change in political opinion with respect to facts and their relation to government, which has found expression--in however incoherent a fashion--in the new opposition to eminent domain. Eminent domain reform is one of the arenas in which this change is going forward.
====== the worm turns :-
On January 25, 2006, BB&T Corporation, a large bank, announced that it "will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain," holding that the ruling is morally objectionable and violates "basic rights".
On May 23, 2006, the city council of Hercules, California voted unanimously to use the right of eminent domain to seize 17 acres owned by Walmart corporation. At a hearing preceding the decision, many dozens of residents spoke against Walmart, complaining that the box stores economically depress an area by driving small shops bankrupt, and moving profits out of the local economy. The council applied the reasoning in the Kelo decision to pre-emptively prevent Walmart from depressing the city's economy.

And lots more.


GoldiloxKelo vs. New London in the Gulf#1469438/25/06; 07:40:15

As the Gulf cleanup plods along, I'm waiting to see the implementations of Kelo vs. New London by the developers who want to use prime Gulf shores property to increase the hotel/casino population for the "greater economic good".
Ten BearsCorruption and martial law #1469448/25/06; 09:01:00

@ Goldilox,and Mikal

Corruption at the very top: When the oligarchs looted Russia, the rapid currency depreciation coupled with the privatization of public assets impoverished many.
There are those who see similar trends leading to similar results here in the USA. I do not want to believe that they are right,however there are indicators pointing in that direction.

A story circulated here in my home area several years ago… A relative of a local, employed as a border petrol agent, inspected one or more Mexican trucks at the border coming into Texas which contained loads of new signs stating "Area Quarantined: Martial Law"

"First create problems, then offer solutions which alter society in a way which would not have been acceptable to the public before the problems were created."
Hegelian Dialectic in play.

GoldiloxBenefits of globalization must be shared: Bernanke#1469458/25/06; 09:32:02


JACKSON HOLE, Wyo. (MarketWatch) -- Economic policymakers have to make sure that enough segments of society feel the benefits of globalization in order to guard against protectionism, Federal Reserve Chairman Ben Bernanke said Friday.

"The challenge for policymakers is to ensure that the benefits of global economic integration are sufficiently widely shared -- for example, by helping displaced workers get the necessary training to take advantage of new opportunities -- that a consensus for welfare-enhancing changes can be obtained," Bernanke said in remarks to the Fed's annual retreat in Jackson Hole.

The effort is not easy, but it is well worth it because the benefits of global integration are large, he said.

Opponents of globalization tend to come from workers and firms whose livelihoods are threatened by the changing pattern of production, he said.

"The natural pattern is to resist change, for example, by seeking the passage of protectionist measures," he said.

Bernanke did not discuss the economic outlook or monetary policy in his prepared remarks. Read more about the debate over the outlook. Read more about the debate over the outlook.

He told the group of leading academics, economists and senior Fed officials that further progress on global integration should not be taken for granted.


Here in San Diego, with 7 large Indian Casinos already expanding, there are "casino dealer" schools popping up in every suburb, to take advantage of the FEDsters great idea of "training". Hmmm. . . minimum wage plus tips - FED spreak for opportunity! Sure beats an having MSCS and moving to Mumbai or Taipei!

Link to entire speech at the URL.

GoldiloxUSDX#1469468/25/06; 09:41:23

The Bernanke "speech spike" has already evaporated.
mikal@Ten Bears#1469478/25/06; 09:58:34 Thanks for that. Those pre-lettered signs don't surprise me, but the fact that the military hasn't used them yet does. Considering recent troop movements in U.S.- foreigners coming in to serve UN missions, and our troops and national guardsman involntarily recalled and garrisoned OUTSIDE and the surge in poor foreign mercenaries serving everywhere, conflict against staged terrorism and ethnic and other divisions DOES advance your "Hegelian Dielect".
Beating the Drums of War. US Troop Build-up: Army & Marines authorize "Involuntary Conscription" - August 23-06

Ten BearsCorruption of Government statistical models#1469488/25/06; 15:52:39

Jim Willie

Just what is the scandal of the month this month. Well, it is back-dated executive stock options, for three months running. The dishonesty of America is our chief characteristic noted by foreigners. They no longer believe most of our official statistics. Why the heck should they? They are almost all lies, useful to paint a picture of strength. The European Union economy is leaps & bounds stronger than the US's in almost every conceivable category.

Is institutionalized dishonesty engrained to the core of America? Methinks YES, WITHOUT ANY QUESTION.

mikalME balance of power favors shift toward gold#1469498/26/06; 08:24:35

Russia and Central Asian Allies Conduct War Games in Response to US Threats | Michel Chossudovsky | Univ of Ottawa | Revised August 25, 2006
mikalMajor U.S. parties desperate to preserve dying political status quo#1469508/26/06; 10:47:31 Off With Their Heads | Matt Tabbi | Rolling Stone | 08/24/06
Attacks on bloggers and irrational, total censorship and isolation of legitimate opposition candidates
are among the increasingly blatent and desperate strategies
and vote fraud tactics spurring backlash to the
"oligarchy" of "the major political parties, big business and commercial media".

GoldiloxWater, the "next oil"#1469518/26/06; 11:02:18


'Whisky is for drinking, water is for fighting over," Mark Twain once said. At the start of the 21st century, his gloomy view on the water side of the equation has been getting endorsements from an impressive - if unlikely - cast of characters.

The Central Intelligence Agency, the accountancy firm PricewaterhouseCoopers and, most recently, Britain's Ministry of Defense have all raised the specter of future "water wars." With water availability shrinking across the Middle East, Asia and sub- Saharan Africa, so the argument runs, violent conflict between states is increasingly likely.

The specter is also on the agenda for the experts from 140 countries gathered this week at the annual World Water Week forum in Stockholm. Meetings of water experts are not obvious forums for debating issues of global peace and security. But the ghost of Mark Twain is in Stockholm this week as we reflect on the links between water scarcity and violent conflict between states.

So, here's the question. Are we heading for an era of "hydrological warfare" in which rivers, lakes and aquifers become national security assets to be fought over, or controlled through proxy armies and client states? Or can water act as a force for peace and cooperation?

Observing recent events, it is difficult to avoid joining the ranks of pessimists who see water wars not as a future threat, but a living reality. Take the recent conflict in Lebanon. Beyond the unfolding horror captured on our television screens, one event went almost unnoticed. The destruction by Israeli bombs of irrigation canals supplying water from the Litani River to farmland along the coastal plain and parts of the Bekaa Valley threatens thousands of livelihoods.

The Litani irrigation system is not an isolated example. Last month in Sri Lanka, the refusal of Tamil Tiger rebels to open a sluice gate for canals that supply water to rice farmers sparked a full-scale military assault that claimed the lives of 17 aid workers.

Water conflicts are invariably shaped by local factors. But the sheer scale of these conflicts makes it impossible to dismiss them as isolated events. What we are dealing with is a global crisis generated by decades of gross mismanagement of water resources.

The facts behind the crisis tell their own story. By 2025, more than two billion people are expected to live in countries that find it difficult or impossible to mobilize the water resources needed to meet the needs of agriculture, industry and households. Population growth, urbanization and the rapid development of manufacturing industries are relentlessly increasing demand for finite water resources.

Symptoms of the resulting water stress are increasingly visible. In northern China, rivers now run dry in their lower reaches for much of the year. In parts of India, groundwater levels are falling so rapidly that from 10 percent to 20 percent of agricultural production is under threat.

From the Aral Sea in Central Asia to Lake Chad in sub-Saharan Africa, lakes are shrinking at an unprecedented rate. In effect, a large section of humanity is now living in regions where the limits of sustainable water use have been breached - and where water-based ecological systems are collapsing.

The disputes erupting within countries are one consequence of increasing scarcity. But water is the ultimate fugitive resource. Two in every five people in the world live in river and lake basins that span one or more international borders. And it is this hydrological interdependence that has the potential to transmit heightened competition for water across frontiers.

The Tigris and Euphrates river systems figure prominently at World Water Week. No river system better demonstrates the nature of hydrological interdependence. In Turkey, the Tigris and Euphrates rivers are seen as an underexploited source of power and irrigation. Viewed from Syria and Iraq, Turkish dams are a threat to hundreds of thousands of livelihoods, with farmers losing access to water. Underpinning the rivalry between states is the idea that sharing water is a zero-sum game: Every drop of water secured by Turkish farmers appears as a loss to Syrian farmers.

Consider, too, the huge river-diversion programs under consideration in China and India, which see them as part of a national strategy for transferring water from surplus to deficit areas. Neighboring governments fear a catastrophic loss of water. Bangladesh has warned that any diversion of the Ganges to meet the needs of India's cities could undermine the livelihoods of millions of vulnerable farmers.

Identifying potential flashpoints for conflict does not require a doctorate in hydrology. In the Middle East, the world's most severely water-stressed region, more than 90 percent of usable water crosses international borders. Forget oil: The most precious resource in the region flows in the River Jordan, or resides in the aquifers that link Israel and the occupied Palestinian territories.

The threats posed by competition for water are real enough - but for every threat there is an opportunity. Cooperation tends to attract less news than violent conflict. Perhaps that is why "water wars" get such exaggerated coverage. The agreement under which Lesotho provides water to the greater Johannesburg area in South Africa in return for watershed management finance does not make front page news. Nor does the Nile Basin Initiative, through which Egypt, Ethiopia and other countries are exchanging the benefits of cooperation on the Nile. And cooperation in West Africa between Senegal, Mali and Mauritania to share the Senegal River is not likely to make prime- time new slots in Europe. Yet cooperation over water is far more widespread than conflict.

None of this is to play down the risk of water wars. Like oil and other energy resources, water is a source of life and livelihoods. It follows that water security is every bit as integral to human progress as energy security, with one large caveat: unlike oil, water has no known substitutes. That is why no country can afford to suffer a catastrophic loss of water resources.


Mark Twain is also the one who said, "History does not repeat itself. It rhymes."

mikalNorth American Security and Trade Area by 2010#1469528/26/06; 11:02:23

Updates recent news reporting on the Mexico to
Canada Superhighway, NAFTA and CAFTA and the NA Union.

mikalNew NA population merger link#1469538/26/06; 14:52:35

Saturday, August 26, 2006 | Anthony Wile
(Updates story posted as "Part 3" below) Excerpt:
"On Friday, August 25, carried a string of immigration-related articles including: How open borders turn Americans into roadkill; Sting rounds up 25 foreigners for sex crimes; Border towns begin strict enforcement of laws; Will America survive to 2050? The site also carried a special offer for Buchanan's latest takes on border crisis, his new book "State of Emergency: The Third World Invasion and Conquest of America" Buchanan's book is a top-ranked Amazon seller – so obviously, the immigration issue has hit home for Americans, even ones who don't follow the alternative ‘Net press.

The immigration issue is getting a lot of attention on the ‘Net and in recent books – deservedly so. Ultimately, immigration is a government-generated problem, made worse by wrongheaded policies and, unfortunately, by fairly devious agendas. Free-market thinkers know that in a free society, where property was fully owned by individuals, there would be no immigration problem.
Individuals would invite "immigrants" in or not as they saw fit. No invite. No entrance.

My point in this article is that by focusing on the issue of immigration itself, the bigger picture may be obscured. Of course, let me make clear that WorldNetDaily in particular has every right to focus on any part of the immigration problem it wishes to. The site has been way out in front when it comes to exposing the issues underlying the illegal immigration explosion.
What are those issues? After a year "in the trenches" researching a number of such issues for my new book "High Alert" (High Alert Publishing,) I can tell you in all sincerity that it actually boils down to this: Believe it or not, America's lawfully elected government is trying to effect the dissolution of the United States of America via a merger with Canada and Mexico."

Ten BearsConversations with a retired pension fund manager#1469548/26/06; 16:29:20

Gambling economy…It is not enough that risk has been shifted to the public via the dismemberment of defined benefit pension programs, nor is it sufficient that the paper sold to the public has little or no intrinsic value (and is denominated in suspect paper fiat currency).
Now the public is supposed to be satisfied with a global labor arbitrage touted as globalization, and to be willing to give up productive manufacturing industries to take up positions as minimum wage croupiers in the growth ‘industry’ of gambling houses.

In times past, these establishments were confined to the sparsely populated western states, later locating in a north eastern state, and more recently in backward ‘bubba’ states in the south.

Now, the Dallas mayor is on record as supporting one in the downtown area.
We are headed for a society where no one has a productive position or a secured old age, only the dream of striking it rich in a rigged casino on Wall Street or Main Street.

GoldendomeU.S. economy headed for a fall.#1469558/26/06; 17:09:22

You can watch and listen to an interview on with Nouriel Roubini (a former gov't economist now on his own). He is predicting a "nasty" recession for the U.S. brought on by the steep decline in housing activity and prices. Roubini says the Fed could be cutting interest rates again by late 2006-- but that won't help housing--as the supply build-up is just too great. He predicts a 20% decline in commodity prices, overall. But cautions, that the geopolitical tensions might overwhelm demand declines in oil, thereby, holding prices up. The burning question that he did not address: is Gold a commodity or Money from his viewpoint? My guess? A commodity.

[Scroll down to the 4:40 pm ET timeslot, on the linked page to find the interview]

GoldiloxChad president orders Chevron out#1469568/26/06; 17:15:10


N'DJAMENA, Chad (Reuters) -- Chad ordered U.S. energy giant Chevron and Malaysia's Petronas on Saturday to leave the country within 24 hours for failing to honor tax obligations, in a move apparently motivated by a desire to earn more from its oil.

"From tomorrow, the representatives of Chevron and Petronas must leave Chad and close their offices," Idriss Deby, president of the central African nation, told a government meeting.

The surprise move followed Chad's decision to create a new national oil company, which it said should become a partner in the country's existing oil-producing consortium, led by U.S. major Exxon Mobil and including Chevron and Petronas.

Landlocked Chad, which began pumping crude in 2003, produces around 160,000-170,000 barrel per day but most of its people remain poor.

Deby said the government had asked Chevron and Petronas this month to honor corporate tax obligations in their contracts.

"Unfortunately the government has received no reaction from the two partners," Deby said.

"Chad must get involved in the production of its oil to control its wealth and develop and increase its participation in the [consortium] pipeline," Deby said, referring to a 250,000 barrels-per-day pipeline to the Cameroon coast.

Under the 1988 agreement with the foreign consortium, Chad gets 12.5 percent of the wellhead value of total production, before quality discount and the cost of sending it through the pipeline to Cameroon's Kribi terminal.

"Despite the rise in the price of a barrel, now estimated at around $70, Chad doesn't get much from its oil revenues," Deby told the meeting with government ministers and political parties.

"In less than three years of exploitation the consortium has earned $5 billion for a $3 billion investment. In contrast, Chad has just received crumbs: $588 million, just 12.5 percent."

The current and former ministers who had handled Chad's oil negotiations are being dismissed. They would answer before the courts on charges they had sent letters to the two foreign oil firms advising them not to pay the taxes, Deby said.

Deby, whose needs increased oil revenues to tackle a security threat from eastern rebels and also poverty, has called the original 1988 oil development deal "a fool's agreement" and called for its renegotiation.

A Transparency International survey last year ranked Chad the world's most corrupt state.


More indigenous resource grabs!

Camel"mask your brightness"#1469578/26/06; 17:58:29

Compliments to our host for making this is a citadel of free speech

Hottest six months in recorded history her