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ARCHIVED DISCUSSION FROM 9/11/2006
All times are U.S. Mountain Time

(Yesterday's Discussion.)

Goldilox (9/11/06; 22:13:35MT - usagold.com msg#: 147384)
TO HEDGE IN A HAND BASKET
http://www.financialsense.com/Market/wrapup.htm
snip:

Businesses who ply their trade in the extractive or natural resource industry have historically been subject to the ups and downs of the business cycle – hence they've long been, collectively, branded ‘cyclical stocks.’

Junior exploration and resource companies fulfill the function of prospecting or discovering identifiable new resources to mine. Call this "grunt work" if you will.

Miners and their Hedge Books have been in the news a great deal lately.

Miners have been making news because the sector has been consolidating. Consolidation amongst the miners has stemmed from takeovers and mergers amongst the base metals producers like Inco and Falconbridge, for example, to the precious metals producers too – ones like Goldcorp/Glamis, Barrick/Placer and more recently Barrick's hostile attempted takeover of Nova Gold. The motivation for this rash of consolidations has been sparked by rising prices for the commodities in question, increased production or run rates to benefit from these higher prices and the inevitable resulting race-to-replace diminishing, finite reserves in the ground. "Cheap and easy money" has made it more attractive to buy and finance existing proven resources than to bother working-for-a-living and actually finding new resources.

This should come as no surprise to most; there are parallels. The moral equivalent is evidenced daily with the proliferation of Texas Hold'em Poker on T.V., which has been elevated to the status of "sport" - with anxious card holders sweating over bad cards - through its overwhelming invasion of all North American sports channels.

Why bother to break a sweat when some good ole fashioned service [watching, concentration, etc.] will suffice, ehhh?

Recently, inordinate attention has been paid to miner's Hedge Books. One well documented, highly publicized case – Barrick Gold Corp. – sports a ‘hedge position’ which is short physical gold bullion, that, speaking of bad cards - by some estimates has been "off-side" [underwater but ‘unrealized’ losses for accounting purposes] to the tune of 3 billion dollars.

This hedge position was ostensibly put in place to appease banker's[?] concerns and "allegedly" entered into to mitigate risk. That such a losing position would be allowed to "fester" to such unimaginable proportions tends to give new meaning to genesis of the word Barrick, which Dr. Antal Fekete so aptly described in his recent illuminating piece titled, To Barrick or to be Barricked, That is the Question (see link).

Apart from appeasing friendly bankers, if we're to believe Dr. Fekete, it would appear that Barrick's hedge position has left a ‘foul taste’ [or a foul smell, perhaps?] in the mouths of some interested parties.

A Foul Smell Indeed

In fact, Barrick's hostile bid for Nova Gold has so rankled some in the gold world, namely GATA – that they have rallied to support Nova Gold and have even gone public urging Nova shareholders to reject Barrick's hostile takeover bid,

"GATA urged NovaGold shareholders, in an August 14 news release, "not to tender their shares to Barrick before Barrick closes its short position in gold." The organization said that Barrick's alleged short position of about 12 million ounces of gold "long has been a major suppressing force against the gold price and against the price of gold mining shares."

Don't hedges work well?

For the uninformed or the uninitiated, it might do well to remember that even perfect hedges are often "thorny places" which may pose danger to unsuspecting trespassers [or would be shareholders too, perhaps?].

White Hills (9/11/06; 22:04:24MT - usagold.com msg#: 147383)
Armageddon
Of course Paulson is in charge of the PPT . He is doing what he was hired to do. How bad is it? What are we willing to do to turn back from the economic black hole sucking us down? It is all ABOUT THE DOLLAR.The rest is much to do about nothing. White Hills

Armageddon (9/11/06; 21:27:42MT - usagold.com msg#: 147382)
@Mk - Who is responsible for the gold plunge?
Sir Mk, you make some very good points about the European central bank and "Black Box" program trading really moving the gold market today. Some of my previous posts mentioned the European Central Banks and their 160 gold ton sell quota as well. I hadn't really thought about the program traders but it would explain the rapid gold price plunge and upward recovery as I see gold is over $590 per ounce as I am typing this.

However, another culprit for the gold plunge could be Paulson who is Secretary of the Treasury and the tools he wields through the Federal Reserve, the private Gold Cartel, other Central Banks around the world and his experience with world financial markets and the legal, semilegal, grey-area, even illegal actions he can take to supress the gold price. I have a feeling that this most recent gold plunge may be an attempt to get rid of the people on margin, and weak hands, the people that are listening to the gold experts saying gold will be $850 by the end of the year and just want a quick easy profit without understanding the basic financial reasons why they should own gold in the first place. The dollar must be maintained as the world's reserve currency. Furthermore, the mid term elections are coming up and you notice that oil,gas,gold are down and even the Iranian situation is seeming to quiet down as well. Gold, oil, gas all need to go down in price to create the illusion of a strong economy with low inflation. In fact I just saw a headline on CNN's financial web site stating "Fed's Poole sees strong economy" even though monthly job creation for the past few months is well below 150,000 which is the minimum number to offset the growth in the work force. Thirdly, its the anniversary of the 911 attacks and the supression of gold price could be a running start to the continued supression of gold during a major terror attack on American soil.

In essense, I would add Henry Paulson to the list of who is responsible for the recent gold plunge.

The reasons behind this are:
1. The American dollar must be preserved as the world's reserve currency.
2. The Midterm elections are coming and the financial people in the Bush administration want oil,gas, and gold down in price in order to create the illusion of a strong robust economy so that Republicans are re-elected this November.
3. Possible coming major terror attacks on American soil and gold must be supressed to convince people it is not a store of value in times of crisis.

However, I believe Paulson will eventually fail because of China's refusal to revalue it currency.


Cometose (9/11/06; 20:26:23MT - usagold.com msg#: 147381)
dollar gold relationship
dollar missed it's cue today or it's really sick duh

MK (9/11/06; 20:26:15MT - usagold.com msg#: 147380)
Current market
There is a lot of talk in and around the gold media about who or what might be responsible for the gold sell off. I do not go with the theories that some European nation state is responsible for the sell-off. France has been transparent about its interests and Axel Weber put the kabosh on German sales. So if there is selling where is it coming from? Portugal was mentioned in today's Daily Market Report, but the tonnages discussed there aren't enough to create a problem -- especially with China and Japan waiting in the wings to buy whatever the official sector would like to put on the market.

So, once again, where is the official sector selling -- if there is any -- coming from?

To me, if there is selling, and I'm not competely convinced that there is, by a process of deductive logic, it could be the European Central Bank that might be the source. We have established over the last year or so that the bullion banks need a bleed-off of about 50 tonnes a month required in order to defray the possibility of a default and runaway price. In the past, it was the ECB that stepped-in to support the bullion banks when all other sources dried up. (And that support could well be delimited to German and French bullion banks from this writer's point of view.)

I would label such selling as the primary central bank fulfilling its role as the lender of last resort -- even if it were to apply that role to gold bullion loans. The ECB claims to be transparent in this regard, but in the past they have been anything but. Opaque would be a better word to describe their actions. Therefore, the ECB is suspecrt. I can't say for sure who the seller has been (if there is one), but this all has the same feel of several months ago when it was announced in arrears that it was the ECB itself doing the selling (and I was among the strongest critics of the sales.)

Who knows what would be the result in the grander scheme of things if one or more bullion banks were to find themselves in a position unable to meet the demands of their depositors. Not only would you have the probability of depositors given the heave-ho, you could have the multiplier effect of diverse market players sensing that the system could no longer meet its gold obligations. The price would run. The problem -- from the central bank's point of view -- would feed on itself as physical supplies dried up. You could have the bullion banks -- which in some cases are also huge national commercial banks -- up against the wall with massive losses to contemplate and the consequent moral hazard marching toward the central banks' doors.

So it is not beyond the understandable to think that the selling culprit, if there is one, could be the ECB.

That having been said, there is another possibility.

Too often we, as gold owners and advocates, discount the power and incentives in the paper trading community. The world we know has been turned sideways, twisted, stood up and its legs cut out from underneath it when it comes to analysing the gold market. It is all too probable that what we have witnessed the past few days is nothing more than paper traders -- the big banks, hedge funds, commodity funds, et al -- all responding to signals imbedded in their programmed trading systems.

I have mentioned this before and I'll mention it again: The computerized, black box trading programs could be a force in and of itself every bit as formidable in the gold market as central bank selling. And there's an automaticity to it that is nearly frightening to long time free market types.

We live in the age of concentrated capital and decisions being made by funds and groups which literally overwhelm the wishes and desires of the individual owners and traders like you and me. I mentioned this in my post the other day and I suggest so much again today. They look for signs and symptoms most of us wouldn't even consider to be important. They react to these signals rightly or wrongly and create a market result foreign to most of us who hold the metal physically on the basis of supply/demand fundamentals and an understanding of the political economy that goes far beyond the concepts employed in black box trading.

As it is the gold market accomplished two things of importance to the computerized gold trader (picture the borg). At $590 gold you are at the 200 day moving average -- a buy signal. At $590 gold, you have also achieved a second technical buy signal -- that provided by the Elliot Wave/Fibonacci .380 correction also at $590. So perhaps the borg will see this as a turning point. That, of course, remains to be seen. I simply point it out for your own consideration.

I see the current situation the way many have today who have bothered to post in one or another their analysis: This is a good time to buy for physical gold owners and advocates.

Maybe the above thoughts will hold water. Maybe they won't. Either or/Any all -- I was only hoping to give you something to think about.

Your comments would be appreciated.


The Invisible Hand (9/11/06; 20:21:07MT - usagold.com msg#: 147379)
The Goldilocks euro
http://www.ameinfo.com/90460.html
SNIP
The UAE Central Bank Governor this week gave his strongest hint yet that the emirates will shortly enter the gold market and also purchase euros as a diversification of the national currency reserves presently held in US dollars. With the US dollar ripe for devaluation this seems a timely initiative.


The Invisible Hand (9/11/06; 19:53:49MT - usagold.com msg#: 147377)
IMF - Rato , the broken record !
http://english.aljazeera.net/NR/exeres/3CAA533D-0463-48C7-A729-79A827C45AA8.htm
SNIP
The international monetary fund chief has warned that the global economy could head into recession if imbalances in the world's financial systems are not resolved.

==

Imbalances...take it serious...no disorderly resolution...it's difficult...don't rush...

And ABSOLUTELY NOTHING happens ! That's how it goes
with very, very important matters.

We are talking about an INTERNATIONAL INSTITUTION
(IMF) !

When none of the main imbalance-parties does what is expected...they all know very well how it might end.

Most probably they "want" it to happen.

"It", being the further build up of the imbalances up until it bursts.

An explosive devaluation of the dollar + global hyper price-inflation.

Exactly what IMF-Rato doesn't dare to say !

He keeps hoping for a recession as the best case scenario for the dollar-IMF he is serving.

TownCrier (9/11/06; 16:06:53MT - usagold.com msg#: 147376)
Russian investigation of highland gold widens
http://www.mineweb.net/gold_silver/158820.htm
11-SEP-06
MOSCOW (Mineweb.com) --The main shaft fire is still not out at Highland Gold's Darasun goldmine, in Chita region, Southeastern Siberia, five days after an explosion trapped 61 miners below surface. Twenty-five died. Local firefighters say that they will take another two to three days before the fire will be extinguished.

The incident is the worst in the region, or in a goldmine across Russia, for more than a decade. The protracted rescue effort has been conveyed nightly on Russian television, as hope for the survivors dwindled.

The damage to Highland Gold, the London-based goldminer created by Roman Abramovich and Roddie Fleming, is serious. Rescued miners have given interviews to the media, accusing Rusdragmet, Highland's local management company, of ignoring fire safety requirements, and economizing on mine protection to cut costs of production. One said he would not return to work at the mine.

In Monday morning trading on the London Stock Exchange, Highland Gold's share price fell 8% to a historic low of 143 pence. This followed falls on Thursday and Friday of 15%...

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

Mining is dirty, difficult, dangerous work.

Maybe that's why so many financial institutions resort to simply printing and selling the idea of it instead.

Are you buying it?

R.

USAGOLD Daily Market Report (9/11/06; 15:48:37MT - usagold.com msg#: 147375)
Page Update!
http://www.usagold.com/DailyQuotes.html
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

September 11 (from MarketWatch, Reuters) -- Mirroring a broad decline among commodities, gold futures dropped $20 an ounce Monday to close under the $600 mark for the first time since late June, with some analysts betting that an upcoming sales deadline could translate into higher market supplies of the precious metal.

COMEX December contracts fell $20 to end the session at $597.30 after trading at one point as low as $589.60 -- the lowest intraday level for the contract since June 23.

"The selling in the last few sessions has all the earmarks of central bank selling," said Peter Grandich, editor of the Grandich Letter. "The belief the Washington Agreement participants would not meet their quota by September 26 now looks like wishful thinking," he added, referring to a handshake-pact among certain central banks to set limits on each year's sales of the metal from sovereign vaults.

The Washington accord had been more than 100 tons short of its quota, but the banks should be finished with their sales before the cutoff date, he said.

"Physical buyers are accustomed to this and have stepped aside knowing a big rally will occur once the selling runs its course," Grandich said.

It's true that the precious-metals investment community is fully aware there is a potential remaining 160 metric tons of gold that has not yet come to market under the terms of the central bank gold agreement, said Kitco's analyst Jon Nadler.

But traders don't have a handle on whether the quotas will be met or simply fall short, he said.

The Bank of Portugal said Monday it has sold 20 tons of gold reserve in recent months and settlement of the operation is now complete. It has sold a total 35 tons of gold this year and holds a total 382 tons of gold in reserves, said a bank spokesman.

Prices for precious metals have seen some hefty losses over the past several days, but some analysts believe the declines provide a buying opportunity.

This looks like normal market volatility to us and it is not a fundamental change in the story," Mark Mathias, managing director of Dawnay Day Quantum, said.

James Steel, analyst at HSBC Bank in New York said: "The key seems to be oil and copper. The direct correlation between gold and oil is not very strong, but gold is being undermined by its inclusion in commodity indices."

"World gold prices are falling at precisely what ought to be a time of seasonal strength in the marketplace, prompting skittish shot-term speculators to bail out en masse, rather than await the much-anticipated return of the throngs of jewelry buyers from India," said Nadler.

"The calendar however, will not wait, and the wedding season will be upon India within a month," he said, meaning "some will have to decide whether $580 or $590 gold is enough of a bargain to go ahead and load up on bullion."

Grandich said he believes a "big reflex rally is near."

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

TownCrier (9/11/06; 14:33:19MT - usagold.com msg#: 147374)
FT HEADLINE -- The Short View: Gold and oil
http://www.ft.com/cms/s/6887ac08-41bf-11db-b4ab-0000779e2340.html
by John Authers, Investment Editor
(FT) September 11 2006

September 11 was an eerily inappropriate date for a decline in the global perception of geopolitical risk. But yesterday saw the sharpest fall in the world gold price in three months.

It fell more than 4 per cent, bringing it below $600 per ounce to reach $586, and 18 per cent below its high for the year, as investors assimilated the idea that political risks may not be not as high as they had seemed and that oil is not a one-way bet.

^---(FT registration req'd to read article at url)---^

Without going further, I can only hope that the author does not propagate the myth that geopolitical risk (specifically the threat of violence) is the primary force shaping the market value of gold during this era.

Closer to the truth would be an explanation that we are looking into a crucible to see what survives as dualing reserve-accounting paradigms square off in a trial by fire.

It is only paper-gold that is added as fuel, and it is only the paper that burns. Unfortunately, it isn't until the test is completed and all the smoke clears that a lot of novice or potential gold investors will be able to understand the difference. As a result they are paralyzed on the sidelines rubbing their eyes and they miss out on glorious buying-opportunities in the heat of the moment.

Does anyone really seriously doubt that physical gold will prevail? If, indeed, you are in doubt, take a long hard consideration of its competition.

*poof*

R.

mikal (9/11/06; 13:54:35MT - usagold.com msg#: 147373)
News too true to use
http://www.afxnews.com
Asian Countries to Let Currencies Rise, Hike Rates
Sun, Sep 10 2006 19:15 GMT
BASEL (AFX) - The Bank for International Settlements said Asian central banks which have intervened to limit currency strength may be forced to raise interest rates or let their currencies appreciate as inflation pressures grow.
Central banks have been able to keep interest rates low during the large-scale foreign exchange market intervention of recent years, because other structural factors such as increased competition and excess capacity have limited inflationary pressures.
But this situation is unlikely to last, the BIS said.
"The concern would be that these structural forces might recede or eventually be overwhelmed by the inflationary pressures arising from expansionary monetary conditions," it said in its latest quarterly review.
"Growth since 2002 has reduced excess capacity in the global economy, and commodity prices have risen strongly across the board. In such circumstances, central banks may have to raise interest rates and allow their currencies to appreciate at a faster rate than in the past," it said.
The scale of intervention in recent years has been unprecedented, resulting in reserve accumulation at a rate of 250 bln usd a year by emerging market economies between 2000 and 2005. This represents 3.5 pct of their combined annual GDP, the BIS said.
Reserve accumulation has been particularly rapid in China, South Korea, India, Malaysia and Taiwan, and also in Russia, it said.
Intervention has been aiming at offsetting some of the upward pressure on the countries' currencies resulting from their large current account surpluses.
Because the domestic money supply expands when a country sells its own currency in interventions, this would normally be expected to lead to additional inflationary pressures.
But these pressures can be offset if the authorities "sterilise" the intervention by issuing securities to mop up the resulting extra liquidity.
But in the case of some central banks, recent interventions have not been fully sterilised, the BIS said.
In India, South Korea, Malaysia, Singapore and Taiwan, between 85 and 95 pct of intervention was sterilised between Jan 2000 and May 2006, whereas the figure was just above 70 pct in China and 60 pct in Russia, it said.
"Many central banks may have used reserve accumulation opportunistically to expand the monetary base to support their choice of a more accommodative monetary policy stance," it said.

Goldilox (9/11/06; 13:14:37MT - usagold.com msg#: 147372)
The Goldilocks Monday
http://www.jsmineset.com/
snip:

The Fed is working overtime on the creation of a mass perspective of a non inflationary economy. The media is working overtime to call the end of the commodity market. Crude oil is being painted as a rotten apple ready to and in fact dropping from the tree.



The item that allows this game is not energy or metals of edibles, but rather the US dollar. Argue if you wish, but if today the US dollar was below .8500 the impact of all this misinformation would have been quite limited.

The goldilocks economy is being repeated on the airwaves today. It claims the economy is slowing perfectly and the cooling of commodity prices proves the wisdom, timing and depth of intellect of the new Conan the Money Man, Professor Bernanke. Greenspan has, like an old soldier, just faded away.

The Fed's Poole has just come out and said everything the market wanted to hear to fit the Goldilocks economy. We are right back on the 1930 Plateau of Prosperity as the markets seem to have forgotten about the Cinderella Economy that was in play a few months ago. I guess Goldilocks with its implication of the 3 BEARS is even better than a Cinderella (she vanishes at midnight).

Right behind Poole was Cathy Minehan of the Fed repeating the perfect balance now existing economically by Red's sage actions. This Monday 9/11 has got to be the best day ever in media reporting of the health of the US economy. There is hardly a challenge out there.

Geopolitically, both Iran and North Korea are ready to lay down their arms and beat them into plow shares.

Today Afghanistan and Iraq do not even exist.

Forgotten is every fundamental for which there is neither fix nor today attention. Every black box has gone bear oil and bear energy, yet the dollar remains the key. Gold is all in the US dollar.

It is inhumane to lecture people who are suffering. All I can say is damn margin, damn writing options, damn credit card use in investments and damn personal loans to speculate. They are the killer today as no one can stand pat and change the channel when the margin call person is banging on your front door looking for your first born.

If anything proves Wag the Dog is in action it is the concerted commentary from all corners of government and international banking TODAY concerning the miracle of the perfect Federal Reserve management of the economy with geopolitics falling directly into orderly control.

Gold is going to set the bear trap of all time, but those hanging on by a thumbnail might just be the means by which the wash out occurs. They always are.

As far as I am concerned:

The "Formula" is absolutely correct.
Gold is headed for $1650.
This is an attempt to break the back of inflationary psychology before October 1st.
The amount of gold, silver and precious metals shares on margin is shocking. Even the most conservative I have spoken to has been nursing margin debt for the past month. I feel so deeply for their pain.

$580 was called by a poster as the bottom of the "correction" last week. Will he/she be correct?

Thoreauly (9/11/06; 12:59:13MT - usagold.com msg#: 147371)
The NAHB Index vs. the S&P 500
http://www.minyanville.com/articles/?a=11150
This was referred to yesterday, but I don't think the link worked. The graph is truly eye-popping, however (see link), as it shows the S&P following the NAHB Index in virtual lockstep for the past ten years . . . but with a twelve-month lag! That is, the NAHB Index is essentially giving us a look at where the stock market will be a full year from now!

My question: assuming the PPT is (or soon will be) aware of the correlation, what in the world can they do to stop what would be nothing less than a full-scale economic collapse?

contrarian (9/11/06; 12:37:39MT - usagold.com msg#: 147370)
Pancakes
Sierra Madre--yes indeed, buildings do not pancake at freefall speeds, even at IHOP!

Sierra Madre (9/11/06; 12:30:11MT - usagold.com msg#: 147369)
(No Subject)

Please excuse the repeats...sorry about that.

SIERRA

Sierra Madre (9/11/06; 12:28:56MT - usagold.com msg#: 147368)
Arbyh: Here we go again....

9/11 - ANOTHER day that will live in infamy...

"9 / 11 plays witness to the dangerousness of our foes. We battle with massive fire power and guidance systems against an enemy of skilled in explosives, assault and camouflage."

I agree with that statement; however, you have not identified THE FOE.

If you still believe those towers fell because two planes hit them, you still have to explain the collapse, on its own footprint and at free-fall speed, of WTC 7.

I have a fine bridge to sell, you interested?

SIERRA


arbyh (9/11/06; 10:50:14MT - usagold.com msg#: 147364)
pressure on gold is waning
The pressure on gold is waning. The establishment forces must have taken a lunch break.
OT: When Hitler's rail car artillary forces attacked the Maginot Line of French forts they would fire 1 round an hour, on the hour, from 8 to 5 (as I recall). They would, of course, skip the noon hour for lunch and resume at 1PM sharp.

Flatliner (9/11/06; 10:14:14MT - usagold.com msg#: 147363)
@a banker
It is a rare day when one see's independent thought filter through the sea of noise in a discernable way. It's the rare song that sparks a lonely tear, or the cry of the sacrificial lamb. Lost in the crowd of black umbrella's are a few red ones that standout, yet dare not resist the flow in fear that their true color will be noticed. Then, along comes a sunny day.

Modesty is a virtue that leads to an invitation to play.

You come to the forum at an interesting time with a sense of confidence that has not been seen for a while. This is truly refreshing and bewildering. To those that ‘think’ they are of independent thought, many will see benefit from your words, if only to see another red umbrella in the crowd or as to see someone that also notices that it really isn't raining.

How do you share?
Why do you share?

If you are here to help some trembling leaves, how is this done? Where is the wind calm and why is it that the crowd moves in unison towards what looks like the obis? Do you speak words that have been rehashed a million times? Or is your foundation build on rock rather then water?

Sorry for the barrage of questions, but I can't help but see that it's a sunny day.


arbyh (9/11/06; 10:05:56MT - usagold.com msg#: 147362)
(No Subject)
The Dow Jones Industrial Average is only down a little, so it is the "nay sayers" who are taking a beating...gold, emerging markets...

Bizarro-Greenspan (9/11/06; 09:58:25MT - usagold.com msg#: 147361)
What's the outlook,ORO?

"The outlook is one of stagflation worse by far than the 70s. The cause for monetary inflation of the order I expect is bad debt. The bad debt is a result of the process of credit quality deterioration characteristic of loose credit conditions, which are themselves the result of having no substantial solvency risk for the major banking houses, which,in turn,is the result of the moral hazard created by the presence of a lender of last resort."

************************************************************

Sounds great,let's all watch them get themselves out of this one,tally ho.


arbyh (9/11/06; 09:51:31MT - usagold.com msg#: 147360)
We watch as history bears witness ...
... and the FIAT -vs- Gold battle on the market unfolds today as we see the dollar trying to make and hold a small gain, while other forces coordinate a damaging blow to gold. This battle pits the well entrenched financial and world structural establishments utilizing unlimited dollars as a tool, against the forces of difficulty in trying to prop up an overburdened shell of debt country with the fundamental problem being that the currency itself looses value with all new debts. All current spending is debt.
It compares with a man cutting his own throat, gauging the need blood money, against the pain and chance of collapse.

May we have a moment of silence for the 9 / 11 victims? ...

... This is also a major anchor around the neck of government. While balancing the shell of debt, they must fight a dangerous battle of intrigue, against an unseen and well hidden foe. 9 / 11 plays witness to the dangerousness of our foes. We battle with massive fire power and guidance systems against an enemy of skilled in explosives, assault and camouflage.
Have you ever played Command and Conquer Generals? I have, and having been a career soldier and a fairly skilled tactician I have engaged in battle (war gamed no less than 20 times in the general vs general game option) these two types of adversaries against each other. I have yet to score a victory of the Advanced Tech Army over the well hidden army skilled in explosives, BIO CHEM tech, assault, and camouflage. Why? Well you could say I'm unskilled in the game, but reconsider the foe. The elusive deadly foe striking at will from unseen locations. Unleashing his deadliest power as quickly as possible.
TOC speaking with the Sensor Operator: "Did you see that, can you get me imagery on that? Here's the coordinates vicinity...OK...Now who did it, and which way did they go? I don't know I'm looking and see no tell tale activity. They are gone. I'll look for high speed vehicles moving away...shit there are hundreds of them."

Turning back to the FIAT -vs- Gold battle...I see gold is getting its ass kicked. Well hard to be surprised it has a foe of unlimited resources and establishment.
My GG, IFN, PCFG, CEF are killing me all of them. I must be a bad tactician, because it surely hurts.



Knallgold (9/11/06; 08:31:20MT - usagold.com msg#: 147359)
(No Subject)
"But with nothing left to lose, Uncle Sam will try to make an ugly show of it for all of those CBs (and their tentative politicians) who are very newly arrived to join the MTM team."---a banker

Uncle Sam could actually shoot in his own feet.If its so obvious he engineers the ugly show,it will only attract more to the Golden Team.Once they realize they only have to beat a weak anti-freemarket force (which already is in its last grasps as world reserve),Golds charisma will be so seducing...

btw,a banker,you write a bit like Another-just to know if we say hello to an old friend!

YGM (9/11/06; 04:02:01MT - usagold.com msg#: 147358)
True Signs of the "Times"
smoke, mirrors, agendas, gold plating lead, gold embossed IOU's, prophet's of doom, powerful fiat IOU's yet worth little, singularly 1st up best dressed mentality worse than ever before globaly, ethics, (what does that word mean?), pigs at the trough in a frenzy. Contradictions every 30 minute's in the media reports of so called mining & market experts,it's going up, no it's going down, the metals/commodities bull has years to go, no it's peaked, newspaper articles headed w/ superlatives to exageratingly describe every up or down movement of metals and markets which is more often than not some editors/owners/IOU buddy, agenda driven tactic. Masses screaming for more, better, faster, all the while totally ignorant of what is meaningful in life or wealth. Funny how some deep buried yellow wealth, family or friends and an open mind can help you rise above the endless chatter & madness.....YGM

melda laure (9/11/06; 01:20:50MT - usagold.com msg#: 147357)
Ok, then perhaps I was mistaken.
I do not remember anyone saying that, but it would be a good reality check. I do recall the same point being made about the brinks trucks that were used to haul away the contents of the comex vault under the WTC.

Goldilox (9/11/06; 01:14:19MT - usagold.com msg#: 147356)
Fake Iraqi gold
@ melda laure,

I thought we had determined from the press photos that the weight of thay many bars would have totally overcome the trucks' suspensions had they been real.

After all, the density of gold is multiples greater than that of any of the industrial metals that might have been decorated to resemble the real thing.

That aside, I am inclined to agree that it was a cover story of some kind, as I fully believe that crushing the Islamic Gold Dinar movement (and "confiscating" their reserves) was a top priority of the FIAT Masters and the contrived Iraqi invasion.

While the Euro and other pure FIAT currencies can masquerade as competitive alternatives to the World's Reserve Currency to our hearts' delight, they really offer no true alternative. They represent the very same "obligation" to the same Money WIzards as the "almighty dollar".


melda laure (9/11/06; 00:40:27MT - usagold.com msg#: 147355)
Early start to Christmas Shopping season!
http://www.infinite-energy.com/resources/keyexpdata.html
Welcome A Banker, quite poetic (and to the point). Sir 'Lox it has always been my suspicion that the fake bars found in iraq were quite real and that the "fake bars" was a cover story. My only basis supporting this is that the fake bars have never been seen since, nor has any follow up story by published since that day.

SNIP
Nuclear Transmutations in Thin-Film Nickel Coatings Undergoing Electrolysis," George H. Miley and James A. Patterson...Following a two-week electrolytic run, the Ni film was found to contain Fe, Ag, Cu, Mg, and Cr, in concentrations exceeding 2 atom % each, plus a number of additional trace elements. These elements were at the most, only present in the initial film and the electrolyte plus other accessible cell components in much smaller amounts.
END.

Sir contrarian, that was quite hillarious, farts and all. But I am not sure we will be lauging forever. There are many truths that must remain apocryphal because the cost is too high. This I fear is one of them. However it is still a good deal easier to punch keystrokes on a computer, so there is no cause for alarm. I worry more about our descent into slavery.

"Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified..."

Bernanke may come to regret having said that; gold will have its day all the same.



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