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ARCHIVED DISCUSSION FROM 1/2/2006 All times are U.S. Mountain Time (Yesterday's Discussion.) YGM (1/2/06; 23:38:19MT - usagold.com msg#: 140004) Sign of Times? http://www.business-standard.com/smartinvestor/storypage.php?hpFlag=Y&chklogin=N&autono=210397&leftnm=lmnu6&leftindx=6&lselect=0 Indian banks are cutting interest rates on personal loans to buy Gold (only Gold) TownCrier (1/2/06; 23:22:40MT - usagold.com msg#: 140003) Rook, your friend is an 'interesting' situation http://www.usagold.com/cpm/aboutcpm.html Given that USAGOLD-Centennial's prices are so very low, may I suggest the happier solution that your friend be informed of the benefits of accepting a greater quantity rather than taking the trouble to find another gold dealer/broker who'd be both eager and willing to give him less for the same money.R. Rook (1/2/06; 22:49:21MT - usagold.com msg#: 140002) N3 This is a guy who will value it more if it is high priced.He wont go competitive shopping. Pitch it as valuable, a work of art, and he will become a guy with gold coins lying around. With one to flip as he walks around. I will email my address. He will be back in late february. I know I just meandered into this sale idea, but I know the guy, he will go for it. Maga Circe (1/2/06; 22:42:21MT - usagold.com msg#: 140001) @ Smeagol 139981 & Liberty Head 139991 Great posts! I reminded me of what I read in the Sovereign Individual, by Davidson and Rees-Mogg, Ch. 7. The reference to the von Hayek paper is there together with an explanation of why cybercurrency (backed by gold) as a competitive currency would threaten the government's monopoly on legal tender. When that happens, governments lose the abitlity to expropriate whealth via inflation. Even the transaction fee required by firms who make e-gold available is lower than inflation. No wonder If I understand it correctly, this is all very exciting. I am very thankful to all the poster in this great forum where so much good education and useful knowledge is discussed. Bound Spirit (1/2/06; 22:39:07MT - usagold.com msg#: 140000) back on topic Ok, wow!! First post after years of lurking and I become part of the straw that breaks the camels back. My sincere apologies for any offenses my argumentative and philosophical proclivities caused. I do however believe that these off topic topics are critically important and need to be discussed - especially in light of the dark places I believe we are heading. I also believe that this forum is frequented by a caliber of people where these broader discussions will be productive. Few things generate self reflection more than the alienation felt by true gold (i.e real money) advocates. But that said, I promise to stick closer to the home topic. In the short time I have left before the responsibilities of previous commitments take hold again in 06, I will summarize my latest thinking about the concept "gold" lest other forum participants get the idea that I'm a true interloper. Unfortunately for those here, my contributions are almost wholly philosophical it's just my nature and can't be helped. I'm an Gold investor, not for its investment qualities, but because I believe in Gold as a devinely derived "concept" which aids living an intended and purposeful life. To that end, I couldn't be more indifferent as to its fiat measured value. For me, gold is literally one of those - put your money where your mouth is things. There's nothing apart from "gold as a concept" that is attractive to me. So, to briefly elaborate, what is my long held "concept" of gold as I see it? I believe our founding fathers felt that people should be free to pursue their interests and accumulate wealth through hard work and the successful implementation of their ideas. There's a lot to focus on in life: the pursuit of happiness, the security of family, the education and civic participation responsibilities of the self governed, and the time to reflect upon the larger questions of life. Today, thanks to the use of fiat currency, we have unnecessarily added to those responsibilities to the diminishment of others. Now we must kept a constant vigil that our accumulated wealth is safe from theft and/or erosion. With gold, if you had a good hiding place, it was an easy thing to do. Today? take your eyes off the screen at your own risk! I personally resent being compelled to know so much about, and stay abreast of; global macro economics, trade issues, bond markets, currency markets, derivatives, real estate, etc. And especially the transitory monetary and fiscal policy's that fiat money management demands. Inflation doesn't just steal money while its still in our wallets, it steals precious time away from,IMO, vastly more important concerns. Concerns that is fundamental to preserving our eroding way of life. Fiat money is a destabilizing force used in the name of funding things without tacit authorization of those living and not yet born. Gold as a concept, properly understood and implemented, avoids all this. That is its power, and that's mostly why our founding fathers believed in it and that's why its worth owning, period. TownCrier (1/2/06; 22:36:13MT - usagold.com msg#: 139999) Rook, http://www.usagold.com/gold/coins/FrenchNapIII.html Not quite the Napeoleons you're looking for, but have the advantage of being both reasonably priced and available.R. Rook (1/2/06; 22:21:19MT - usagold.com msg#: 139998) l/_ Oh, and I think you could clinch a sale if you include some small amount of creatively made chocolate. I'm serious! He would react positively. If you had pieces made in a fancy -- H -- shape, you would have him calling.I kid you not. Rook (1/2/06; 22:11:45MT - usagold.com msg#: 139997) l/_ I for one am grateful for less politics on the forum.One guy asked me this year where to invest 50000 dollars. I told him (again) that my choice would be gold. I put usagold on his favorites list for him. I mentioned that gold had risen since 98, and thought it would reach 500 this year. Following MK's lead on that. Later I happened to talk to him and he said he had mentioned to some people that I had told him it would reach 500 and it did. I said there was no good reason why it will not continue to trend up. If he does follow the link I gave him, I know he would never settle into the forum with the moveon.org blogger style politics we have fostered. I have another freind, well, I will call him freind, can you ever call the obscenely wealthy people freind? None the less, we have a happy record of encounters, and numerous at his house, and I wonder if there is another person who is in love with gold leaf as he is. His cielings, some doors, virtually all fixtures, including sink fixtures, gold plated or leafed. I mentioned to him, why dont you buy gold bars for door stops? He has statues and other works of art that are costly, I recommend that usagold offer solid gold statues and gold plated items. Send me a package you want me to give him. No big explanations. Do you have a way to get some Napolean gold coins? Were some ever made? He has a new Napolean bust with spotlight. I bet he would spring for some Napolean gold coins. He just bought a home on the beach, Palm Beach. Right after the big hurricane season. Why? because it is opulent.Dont send me a package to give him that is all logical. Promote the beauty of your coins and whatever. Federal_Reserves (1/2/06; 21:52:11MT - usagold.com msg#: 139996) Once Communist China realizes they are becoming a sub-state of the global corporations (US, Britan, European, Japan) who run the world, and who they have allowed to control their economy since 95, it's likely they will start to react in a negative fashion, particularly as they recognize they will not be allowed control of Taiwan. This will be the trigger for a negative world event. MK (1/2/06; 20:44:06MT - usagold.com msg#: 139995) New rules We should be a bit more specific, as we really do not want to inhibit good and useful conversation. Let me put it in a simple framework: Acceptable posts include discussion of economics, financial and monetary markets, and geopolitics -- that is, insofar as they each are made to demonstrate relevance to the topic of GOLD ownership. We'll go with that and I will leave the rest to all of you in the spirit with which we created this forum and with which we would like to see it proceed in the future. Lets not forget that it wasn't too many years ago that discussions like this on gold as it relates to our political, financial and economic well-being did not even exist. The mainstream press controlled what was said about gold and each and every one of us was a quiet voice with a limited audience. We have had something special here over the past nearly eight years (Yes! approaching eight years now). Let us all appreciate and take personal responsibility for what we have here and make it better place for all visitors -- both new and old. By this we will nourish something special for ourselves.Let the discussion continue. . . My best to all of you with best wishes for a happy and successful 2006! Mthirsty1 (1/2/06; 20:39:49MT - usagold.com msg#: 139994) "OOPS" Sorry folks,i left the discussion and went to the doctor and went directley to the rules.I had not seen MK'S POST.I appoligize.M. Goldilox (1/2/06; 20:31:15MT - usagold.com msg#: 139993) European moves to solve gas row http://news.bbc.co.uk/2/hi/europe/4576534.stm snip:International efforts are taking place to solve the dispute between Russia and Ukraine over gas prices, which has disrupted supplies across Europe. EU foreign policy chief Javier Solana said he was trying to persuade both sides to resume talks. Ukraine said it would call for arbitration.Russia says it will pump more gas to countries that said supplies had fallen after Moscow cut Kiev's provision.Gas firm Gazprom said full supply would be restored by Wednesday evening.EU energy officials are set to discuss the crisis at a meeting on Wednesday.-GoldiloxPrice jumps in NatGas might seem like Putin's political manipulation from one perspective, but during this bitter cold winter in Europe, no one wants to see interruption of NatGas deliveries, or any upset of energy/economic equilibria. Perhaps cooler heads will prevail.Not directly gold related, but certainly well within our pre-open forum topical guidelines. I hope I'm not on thin ice with this one. Mthirsty1 (1/2/06; 20:18:46MT - usagold.com msg#: 139992) USA GOLD I started watching this discussion about a year ago.What has kept me coming back is the things i learn when listening to you folks.I have made a couple of posts in the last few weeks and would like to continue to participate.I do not really know what set off this last round of debates,but i am not seeing what i have in the past.Even though i am the new guy,i,think that everyone in this forum needs to take 5 minutes and go back and read the rules to take place in these discussions,as i did just before making this post.I did not see one rule that has not been broken in the past few weeks.CPM has the right to negate this forum at any second with no warning. Liberty Head (1/2/06; 20:11:17MT - usagold.com msg#: 139991) Competitive Money http://www.independent.org/newsroom/article.asp?id=1594 snipDespite the gold standard's success it's unlikely to be reintroduced by the U.S. government very soon. However, other monetary arrangements are still possible. As technology evolves, private forms of money may crowd out the importance of government money. Peter Thiel, co-founder of PayPal, said that in 2000 his company thought, "we're going to replace every government currency in the world." Although PayPal is an alternative payment system it's not an actual alternative money since it is denominated in national currencies. If other companies, which denominate accounts in commodities such as gold, like E-gold, increase to PayPal's size, technology may yet provide alternatives to government money.Nobel Laureate F.A. Hayek argued in his 1976 monograph, The Denationalization of Money, that private firms should be allowed to compete with government money and that the competition would provide a more stable and sound currency. With globalization, technological change, and firms like PayPal and E-gold we may eventually get there. In the meantime, as the Fed changes personalities, it is important to keep in mind that our modern monetary system, based entirely on expectations, has existed for only a brief time and its stability should be monitored cautiously.---------------Smeagol The REAL quesstion is - why are "THEY" (U.S.) doing THIS? ~>8-(Liberty HeadCompetition me thinkss is unwelcome.Best Wishes Flatliner (1/2/06; 20:04:11MT - usagold.com msg#: 139990) @so it begins Smeagol, The link is very interesting. The listed date makes me question why it took so long to find it's way into this great forum. Did this happen recently or (years ago) back in 2001?MK, Your discipline for this forum earns you and this site great respect. My hat is off to you and all who selflessly reach out to improve the financial lives of those who visit here. Thank you. MK (1/2/06; 19:41:13MT - usagold.com msg#: 139989) Goldilox Essentially, we will be looking for patterns of abuse. I think most of us have been around long enough to know what's acceptable. Use your best judgement. We value you and everyone else here as posters. We just need to keep things under control. That's a personal commitment that all of us need to incorporate into our thinking as posters here. Look at it this way: It's in the best interest of the Table as a whole. We are asking for co-operation. MK (1/2/06; 19:32:42MT - usagold.com msg#: 139988) Goldilox Make sure you relate your posts to gold is some way, shape or form. You will know that a warning has been issued if your post[s] are removed. Goldilox (1/2/06; 19:19:50MT - usagold.com msg#: 139987) Au and Ag open Actually moviing in opposite directions at the HK open, but the night is young! YGM (1/2/06; 19:16:49MT - usagold.com msg#: 139986) 2006 Up Up & Away. Au & Ag off to a running start. Let er rip! Goldilox (1/2/06; 19:14:02MT - usagold.com msg#: 139985) Rules Change Clarification @ MK,Does this mean discussions of silver, oil, and NatGas and non-gold currencies are now considered out of bounds, as well?Not trying to be facetious, but would appreciate some clarification of the boundaries. Goldilox (1/2/06; 19:08:14MT - usagold.com msg#: 139984) Confiscation vs. Nationalization @ YGM,I think that these are two horses of only slightly different color. You suggest that too many laws would need to change and it would take months to implement nationalization. One might have originally thought that of confiscation, as well, but it took only an overnight emergency Presidential proclamation, and laws followed later to support its enforcement.More and more things that constitutionally "require" legislation are finding their source in admin orders that are later supported by legislation, so while there may be many reasons to doubt nationalization, your explanation doesn't strike me as one that would hinder today's governmental processes. specie-man (1/2/06; 18:55:39MT - usagold.com msg#: 139983) RE: ...and so it begins (?) @Smeagol,VERY interesting...Someone views E-Gold as a threat, it would seem. Smeagol (1/2/06; 18:55:33MT - usagold.com msg#: 139982) Instant Law Ssir YGM (msg#: 139977)"We have many laws that would have to be legislated and changed and outside of total Gov martial law these transitions would take years."Two words, precious:Executive Order.S. Smeagol (1/2/06; 18:49:07MT - usagold.com msg#: 139981) ...and so it begins (?) http://www.wired.com/news/politics/0,1283,42745,00.html by Declan McCullagh2001-03-30 15:00:00.0Ssnips:"WASHINGTON -- The Secret Service has raided a New York state business that exchanged dollars for grams of the digital currency called e-gold.A bevy of agents from the Secret Service, Postal Service and local police recently detained the owners of Gold-Age, based in Syracuse, and seized computers, files and documents from the fledgling firm.U.S. Attorney Daniel French said Friday that the investigation involved charges of credit card fraud. "We haven't brought charges yet," French said. "We're in the investigative phase."Gold-Age owner Parker Bradley says that during his eight-hour interrogation on March 12, the Secret Service seemed less interested in credit card fraud and more interested in the mechanics of e-gold. Until last year, Bradley accepted credit cards and paid out e-gold, but said he quit because too many people used stolen credit cards when conducting business with him."The interrogation became less about me and more about politics and e-gold," Bradley said. "They were trying to get me to blame e-gold for fraud. Just to be blunt, these guys have no clue about how e-commerce works, how e-gold works or what I was doing." ...."Bradley, who was raided, says that he's retained a lawyer and is asking that his computer equipment be returned. He said that in addition to the Secret Service seizing his business records, the raid seemed personal: They snatched his passport, birth certificate and personal checkbook.""When it was obvious I had done nothing wrong, they tried to get me and my wife -- interrogating us separately -- to implicate e-gold," Bradley said. "They said, 'Might (e-gold) be doing this, could they be doing this?'" ----More at link.The REAL quesstion is - why are "THEY" (U.S.) doing THIS? ~>8-(S. Cavan Man (1/2/06; 18:42:46MT - usagold.com msg#: 139980) @ The PH Man... Finally...after all these years...we are in complete harmony! Salutations...CM YGM (1/2/06; 18:36:34MT - usagold.com msg#: 139979) 2006 Hi & Close Au High--$$$ 999.99 $$$Close--$$$ 999.95 $$$If wishes were horses, beggars would ride. Now awaiting Invisible Hands quote (smile) I KNOW from past experience I'll like his 2006 estimates much better. MK (1/2/06; 18:30:05MT - usagold.com msg#: 139978) Forum rules change After much thought and discussion, including input from USAGOLD-Centennial Precious Metals clientele who either participate in this forum or visit it regularly, we have decided to return to the gold only discussion format and that includes the weekend. As of this post, this forum is no longer an open forum. If you see a post disappear, it is most likely because we have deemed sufficiently off-topic to warrant removal. We see this return to our original format as in the best interest of both the firm and the forum itself. With the New Year upon us, we felt it would be a good time to make this change. We are looking forward to 2006 as an important year for gold and the international economy. It is our sincere hope that this unique forum will serve as a source of information and opinion for our current and prospective clientele. Thank you for your co-operation. YGM (1/2/06; 18:29:29MT - usagold.com msg#: 139977) Nationalizing Gold "In Ground" Personally as far the thought of western world, democratic Nations usurping publicly owned Mining Company's Gold reserves goes, I find the notion is totally ridiculous. We have many laws that would have to be legislated and changed and outside of total Gov martial law these transitions would take years. The dollar amount which would have to be paid in compensation would be staggering. If it ever did come to pass you wouldn't own any private Gold long before they take the Gold in ground. Confiscation will come long before Nationalization. Smeagol (1/2/06; 18:24:45MT - usagold.com msg#: 139976) Taking Shots at the Mother Of All Gold-Price Contessts White Rose (1/2/06; 08:32:44MT - usagold.com msg#: 139936)"I propose an unofficial contest to guess the high price for gold in 2006 as measured in US "dollars", as well as the closing price for the year."Predict the high AND ending price of It a year from now...with all that is on (and above, and below) the horizon?? You might as well have assked us to pull Melda Laure's elven bow! Ssss...what tassks they sets us, precious! But, ssince we loves to guess It sso much, we must try...sss...even with no or little hope, and less training!Will a kind Giant please hoisst us up... sso we can use this?.... thank you!For the ending price of It in 2006.......errrrr-r-rghH!TWANG!sshhhhhhhhh >Thunk!<FRN$632sss...and for the peak price of It in 2006.....errrr-r-r-aaaAARGH-H-H!...TWANG!!OWWWW! Our fingers!! sshhhhhhhhhh >THUNK!!<FRN$670Ach! Sset uss down now and take away this tricksy thing! It's jusst as bad for us as elf-cakes!Not as high as others... but we will cover that by saying our guesses might be out the window anyways if some unexpected major "event" happens during the year.S. Smeagol (1/2/06; 18:15:24MT - usagold.com msg#: 139975) Keeping It within borders... Ssir Goldilox: "...what about a Nixonesque nationalization of the Comex to keep inventories in-house?"Hmmm...we thinks that level of interference in the marketses would be a thing of lasst resort, precious, but COMEX is not the ONLY place to get It, anymore. If the US-country does something like that it will only add to the "Dumb Things We've Done" side of the ledger.S. YGM (1/2/06; 17:53:26MT - usagold.com msg#: 139974) Hear Hear to These Remarks of Goldquest's goldquest (1/2/06; 16:24:28MT - usagold.com msg#: 139964)Wrong Gold Forum!It's the "other" gold forum that discusses everything except gold and precious metals.They are also, experts at insults, religion bashing and keeping their forum in an constant hostile enviroment.If the members of this great gold forum want that kind of a dialogue, then I wish everyone a "Happy New Year," and a goodbye..........................Lots of pathetic posts here today and other days. Can't speak of Silver w/o flak and insults but we have to wade thru the piles of crap posted today to follow any PM conversation. One or two manage to slip in politics and conspiracy crap ANY day of the week now. Maybe this is not the USA Gold Forum of old anymore. Too bad as this was always the best Gold & PM talk site. What next? HuTu's vs Tutsi's? Religion? Anti fur lobby?...YGM. Gene (1/2/06; 17:36:45MT - usagold.com msg#: 139973) @PH in LA & Goldilox Please go back and read my first post. You are attributing volumes to me that I did not write. I never said anything about Gen. Franks. I have never read anything he has written. I certainly do not advocate any nuclear strike against anyone. I am not a fascist or a racist and have never been so accused. I was not in favor of our participation in any war in places where we were not directly threatened, including this one and the two before it.I served in one & am too old now to do it again. Though I think the South Koreans are mighty glad they are not living the life they would have had we not been there.What I said was that I believe Iran will use a nuclear weapon if they can get one; and they would use it against us if they could. There is still a diplomatic door open to them. They don't need to enrich their own uranium. If a crazed criminal stands before me armed and says he's going to kill me, I'm going to do my utmost to shoot first. If you say that's wrong, so be it. I'll still shoot.As far as I'm concerned, American hegemony, crooked politicians, and the other things you both mention, they are not even relevant in this instance. This is strictly a case of survival. By the way, we get most of the oil we use from our neighbor to the north. Goldilox (1/2/06; 17:36:29MT - usagold.com msg#: 139972) Base metal majors jack up prices http://www.business-standard.com/smartinvestor/storypage.php?leftnm=lmnu6&leftindx=6&lselect=10&chklogin=N&autono=210343 snip:Buoyant global rates seen as triggerDilip Kumar Jha / Mumbai January 03, 2006Domestic base metal producers have increased their prices substantially, effective January 1, in sync with international rates. State-owned integrated copper producer Hindustan Copper, in one of the largest-ever price hike, has increased rates by Rs 11,000 a tonne across the board,. Aluminium major Hindalco Industries has hiked selling prices by Rs 4,000 a metric tonne, while state-run National Aluminum has raised prices by Rs 3,500 a metric tonne across all product categories. Hindustan Zinc, the largest zinc producer in the country, also raised its selling prices by about Rs 1,300 a tonne to Rs 107,300 per tonne (SHG) effective January 1, 2006. In the case of aluminium, this is the second price rise within a span of 15 days, following the 5,000 a tonne hike on December 17. The current hike has increased prices of aluminium ingot IC20 to Rs 111,450 a tonne, while billets CH10 has increased to Rs 114,450 a tonne. Aluminium wire rods WE20 surged to Rs 120,050 a tonne, while aluminium cast strip CS10 has shot up to Rs 120,800 a tonne. Aluminium prices are going up interruptedly in the international market with the white metal touching all time high of $ 2300 on the London Metal Exchange (LME). Lower than expected aluminium inventories in November are mainly attributed to the current price rise. Total world aluminum inventories in November fell by 30,000 metric tonne to 3.195 million tonne, from a revised 3.225 million tonne in October. Total unwrought aluminum inventories in November fell by 18,000 tonne to 1.765 million tonne compared with the previous month. Indian aluminium production, however, was higher at 612,247 tonne, up 6.7 per cent in the first eight months of the financial year. "A similar price rise in the international market is not the only criterion on which we decide the new price trend. There a number of other factors including comparative realisation in the international markets. If the realisation is better in the international markets, then we increase prices. Ultimately, all are working for making money," a Nalco official said. An official from Hindustan Copper said, "Monthly average LME copper prices, on which prices are decided, are calculated at $4576.78 in December compared with $4269.34 in November. We had no choice but to raise them in order to bring them at par with international rates." Despite a 25 per cent surge in output at 329,465 tonne during April-November 2005, prices have picked up owing to higher international prices and declining stocks across global warehouses.-GoldiloxAs energy is a major cost item in mining and delivery, this is hardly unexpected, especially as demand is experiencing no abatement either. Goldilox (1/2/06; 17:19:57MT - usagold.com msg#: 139971) War Messages @ PH,Please don't lump Bound Spirit with posters as unwilling to converse intelligently as Gene. At least Bound Spirit states his case and is willing it defend it. As with White Hills, I am always willing to debate when he is willing to bring his research to the table (on weekends and holidays).The bottom line is that none of this is about my or anyone else's beliefs, but the revelation of goings on about us to our mutual enlightenment as a group.Some affect gold overtly, and some, as Another revealed in his oil for gold analogy, are more covert in their actions and effects.The wars, as dollar hegemony actions, certainly affect POG (the last Iraq invasion saw a 25% run up in a short time), but not always as expected.Nor do we always immediately recognize the cause and effect. Was the POG run up just a natural response to political instability, or a more specific response to the policy of printing $billions more debt to purchase a "coalition"? Between Pakistan, Turkey and Israel, there were more than $50 Billions on the table for coalition support. That's a lot of overnight debt to add, on top of the direct costs of war. Goldilox (1/2/06; 16:48:21MT - usagold.com msg#: 139970) Kirby's thoughts @ Smeagol,Kirby's observations bring up an interesting point. Many posters have suggested that nationalization of in-ground resources may be imminent if more drastic measures are needed to retain national wealth, but what about a Nixonesque nationalization of the Comex to keep inventories in-house?Or maybe not a complete nationalization, but serious export restrictions, instead.That would certainly add fodder to the fan. PH in LA (1/2/06; 16:47:15MT - usagold.com msg#: 139969) Supporting US global hegemony! Dear Mr. Gene,Thank you for articulating in advance your fascist point of view by calling Goldilox a few names and quickly declaring your contribution to the discussion over. At least this is something we can agree on, even as the content of your and Bound Spirits' remarks turn stomachs throughout the thinking world.Thoughtful members of the world community do not take General Frank's opinion as the word of law any more than they support conscription as a way to get "our" oil out from under "their" countries. For your information, the "clash of civilizations" that warmongers like to cite as the reason for present-day conflicts already happened a thousand years ago. Rather, it is the racist character of the State of Israel that is the root cause of the state of today's world. When apartheid was the official policy of South Africa, the civilized world brought pressure against that rogue nation until it was abolished. This will happen eventually to Israel, too. No matter how many fascists and religious racists promote war as a solution until it happens.If you want to support the "institution of conscription" as preparation for your "final solutions" may I suggest that you make your move by signing up yourself. You might consider requesting that the daughters of our oh-so-brave President Bush join you, too. Such a "voting with your feet" action would be far more persuasive than any list of names you might like to call the "liberals" and "left wing whackos" that find your views repulsive. For my part, I will continue to oppose aggressive war just as I did during the Vietnam war. I will never support the government of the United States in any use of nuclear weapons to subdue any other part of the world, nor will I support the ongoing commission of crimes against humanity, war crimes and/or violations of US laws, all of which are trademarks of our current government, in any misbegotten bid to preserve "U.S. global hegemony" or whatever other fancy name you would like to use to describe tyranny and/or human oppression. Mthirsty1 (1/2/06; 16:45:44MT - usagold.com msg#: 139968) Mercury http://sltrib.com/utah/ci_3356234 A very interesting article on mining in Nevada.Never realized Nevada is the third largest gold producer in the world behind South Africa,and Austraila,and produces four fifths of the gold in the united states. Smeagol (1/2/06; 16:40:27MT - usagold.com msg#: 139967) ...we forgot to add the part in our last Post, about the Fed susspending their M3 publishing at the ssame time.And the Ides of March to boot. What a confluence.Ssir Goldilox, the Banksters will do what they have always done...meddle in affairs better left to the natural order of things...until everyone wises up... or worse.S. Smeagol (1/2/06; 16:32:00MT - usagold.com msg#: 139966) ...and the beginning of...??? http://www.gold-eagle.com/editorials_05/rkirby010106.html The End Of The InnocenceRob Kirby"To any untrained [or uninformed] eye, viewing the stockpile data of physical gold 'warehoused' at the NYMEX's COMEX division in NY - admittedly nothing seems to be amiss [ie. warehoused totals don't seem to change much].""The "churn" on COMEX - for now - serves as strictly a 'change of ownership' of the physical stockpile. It seems the physical metal ownership is being acquired by some entity [s] in such a way as not to draw attention by significantly drawing down on stockpiles - so it's all optics.""Over the next three months, the U.S. dollar faces an uncertain future owing to likely significant liquidations in favor of the Euro with the establishment of a Petro Euro Oil Bourse - [March 20/06]. This uncertainty could significantly jeopardize the U.S. dollar's standing as the world's reserve currency.""March 20, 2006 - like it or not - is shaping up to be a date of significance. As this date approaches it will be interesting, indeed, to observe the machinations of COMEX warehouse stocks of metal as well as the fortunes of Iran - geopolitically on the world stage."-----The dots are being connected...we watches...Thoughtses?S. Goldilox (1/2/06; 16:28:37MT - usagold.com msg#: 139965) Mug's Game @ Sir Smeagol,Interesting article. Despite all efforts to sweep abuses like Barrick-Banchard under the table, the "smart money" responds to the bigger picture, which is not very fortuitous for unabated dollar hegemeny.I still question the bankster predictions TC posted yesterday, as I wonder how willing they are to continue their "bugger thy neighbor's currency" policies, but it is very likely that in the nearer term, gold will respond well irregardless of CB reactionism.-G goldquest (1/2/06; 16:24:28MT - usagold.com msg#: 139964) Wrong Gold Forum! It's the "other" gold forum that discusses everything except gold and precious metals.They are also, experts at insults, religion bashing and keeping their forum in an constant hostile enviroment.If the members of this great gold forum want that kind of a dialogue, then I wish everyone a "Happy New Year," and a goodbye. Goldilox (1/2/06; 16:18:14MT - usagold.com msg#: 139963) Response to "Bound Spirit" Thanks for the reply. I differ with your thoughts, but I have never labeled you "facist", or anything else - those, my friend, are your own words. I'm surprised that you would stoop to accuse me of that, given the thoughtfulness of the rest of your reply. I'm happy to engage your ideas in open discource when appropriate without resorting to name calling. I leave that tactic to less thouhgtful posters.As to the sources of my "world view", I rely on reports and anlayses by those who review the largest slate of facts that can be assembled. One of my favorites is a book promoted on the very right wing Puplava site entitled "Confessions of an Economic Hitman", a rather scathng treatise on the tactics of dollar hegemony.As to White Hills accusation that I get my facts from Michael Moore, I have referenced a lot of sources in the last few years, but never Michael Moore, as I believe he is no more independent than FOX "bought and paid for" News. If WH is unable to differentiate those sources, I suggest he should do more in-depth research before posting such off-the-cuff remarks. As to left-leaning tendencies, I have no more love for the Democratic Party's "government trough" agenda than I do for the NeoCons "conquest" agenda. I agree more with Ron Paul more than anyone on the left side of the carpet, but I don't let spinster's labels prejudice my opinion of someone's ideas.I won't go into any more detail in deference to the host and topical preferences, as I do not reference these issues anymore except when responding to someone else's post.As POG reflects the world political climate, among other things, I think we are likely to experience MK's projected "breakout" in the coming months. I concur with those who are predicting some large increases and wild volatility in response to dollar weakness and political unrest.Prosperous New Year to all. Smeagol (1/2/06; 16:14:33MT - usagold.com msg#: 139962) When Gold Is For Losers... And when It's Not http://www.gold-eagle.com/editorials_05/lundeen123105.html Gold And "A Mug's Game"The Gold / US Currency in Circulation Ratioby Mark J. LundeenSsnipses:"For the better part of the past 86 years, holding gold has been what Humphrey Bogart in a 1938 gangster movie would have called "a mug's game". A mug's game being an occupation best left to losers. In this article I will discuss an oscillator that for 86 years has correctly called the turns when gold was the smart play and when gold was best left to the mugs. I call it, "The Gold / US Currency in Circulation Ratio" (The Gold / CinC Ratio or just The Ratio). Right now, The Ratio is telling us that gold is a mugs game - no more.""The Gold / CinC Ratio is very simple. To construct it, one only uses as variables the price of gold and US Currency in Circulation (CinC) both indexed to 1.00 on 05-January-1920.""The Ratio trends downward as CinC increases at a rate faster than the price of gold and holding gold becomes a mug's game. As The Ratio trends down towards its lower end point in the cycle, the markets reach a point of revulsion to Federal Reserve Notes (dollars). Confidence in "the full faith and credit" behind those controlling the issue of US currency is shaken, serious money sell their dollar assets to buy hard assets including gold, and gold is no longer a mug's game."-----A different... ssimple way of showing how It prices dollars...and what we all know is coming for dollars and they that keep and use them. Ssir Gandalf would like the chartses, they resembles "dollar-waterfalls" he likes so much.May you find safe ways through 2006 and beyond, precious.S. Liberty Head (1/2/06; 16:07:59MT - usagold.com msg#: 139961) Questions What is it about people who speak the truth, that they must be crucified?What is it about people who hear the truth, that they must crucify?Does the truth not remain long after the messenger has been demeaned and murdered?Best Wishes, from one who has been condemned to eternal irrelevance. Goldilox (1/2/06; 15:59:26MT - usagold.com msg#: 139960) More name calling Thanks Gene,I cetainly expected no less than childish epithets after reading your first post.I have some very conservative friends who are more than willing to engage in intelligent "no-name-calling" debate, but you obviously aren't prepared for that level of discourse. Gene (1/2/06; 15:12:02MT - usagold.com msg#: 139959) @goldilox As much as I would like to respond, I know from experience that no amount of reason or logic will convince a left wing whacko of anything. Boy, did Bound Spirit ever have you pegged correctly. Discussion over! Goldilox (1/2/06; 15:01:05MT - usagold.com msg#: 139958) Using Nukes @ Gene,Using your "logic", someone should have nuked the US long ago, as it is the only country who, once having a nuclear arsernal, immediately used them on civilian targets. In fact, the US is still the only force using nuclear contaminated ammo, preferring to expose its own troops and continue to deny the reality of "Gulf War Syndrome" until most of those soldiers affected are already dead from slow nuclear poisoning.This is the same insane policy as the chemical and biological weapons employed in Viet-Nam. My brother came home from Nam and suffered for 15 more years from officially denied "friendly fire poisoning," and was finally awarded his due "honor" posthumously. I hope your children and grandchildren are treated better by your blood thirst than my family has been.Thankfully, everyone in the world does not as readily promote mutually assured destruction as you do. Gene (1/2/06; 14:17:26MT - usagold.com msg#: 139957) Iran/Oil/Gold I don't think we need an excuse about Iran other than self preservation. If Iran develops a nuclear weapon, they will use it.I think the groundwork is being layed right now amongst our allies & aquaintences for a strike either by us or Israel or both against the facilities in Iran. Of course oil & gold prices will explode with the first detonation in Iran. My only problem with this is that I don't think we should do it without having first instituted conscription again.We need more "feet on the ground" capability. We should not undertake such activity w/o having considered all possible "unintended consequences" & w/o overwhelming force on our side.By the way, my guess on the 2006 gold high & close is $823. Bound Spirit (1/2/06; 14:12:21MT - usagold.com msg#: 139956) @goldilox 139940 Dear Goldilox:Many of us (as I'm sure you would claim) "knee jerk" patriots do not wish to engage in "issue" politics as so typifies a liberal or the "win the battle - loose the war" libertarian. We generally start from some Acoms Razor view of the world that deals quite easily with the likes of you and all your petty and mostly irrelevant issues. For example, here's a glimpse of General Franks' world view that I happen to agree with (taken from the General Franks interview you posted) ((Franks ended his interview with a less-than-optimistic note. "It's not in the history of civilization for peace ever to reign. Never has in the history of man. ... I doubt that we'll ever have a time when the world will actually be at peace.")).Now, try to reconcile this statement with your criticisms of the USA and your desire for higher "moral ground". Do our reactions to the events of 9/11/01 square with Frank's statement? You bet. Can these events be explained solely on the basis of the greed of the Bush family? Please! Where would your so called 'higher moral ground' lead us? hmmmmm? To a refutation of Franks world view? Please! Speaking of vagueness, your reference to higher moral ground is well cloaked in mystery but is in fact your acoms razor. So don't be shy - put it to the test. I'll remind you that our founding fathers were quite wealthy but chose a path that put their lives, the lives of their families, and their fortunes at mortal risk. Of course, extreme pessimism would chalk up their actions to simple greed for power. But my personal reflections yield that people can have convictions that transcend personal aggrandizements. I guess that makes me a hopeless idealist. Of course I don't care - Whether humans can intrinsically transcend their inner evolutionary animal, is not important, a belief in that transcendence,is. No?What else is there worth believing in?Let me supply an alternative explanation for current events. The larger view IMHO and a little lesson on reality as it is not what you want it to be. Iraq and conflicts in the middle east (and this includes control of oil) is fundementally a cultural conflict. Now I don't harbor misgivings against the people in Islamic nations any more than I harbored against the American Indian but the simple fact is that irreconcilable cultural differences must be resolved one way on another. That is the fundamental defining feature of the history of civilization that Franks refers to. Does the West have irreconcilable differences with Islamic culture? You bet. If you would have us believe that reconciliation can be accomplished through the application of pure reason (akin to the Rodney King "just get along" montra) then you, my fellow gold bug, are the naive idealist. Trust me when I tell you that within Franks statement is an acknowledgment that war, and the threat of war, has been and will always be, the primary reconciling agent. Now if you don't think this is fundamentally a cultural conflict or if you don't see any security need to preserve U.S. global hegemony, then your issues of personal motivation through greed and other selfishness may have more validity. But state your world view first so I can know if your Sunday morning chats can be productive. Based on your posting to White Hills, I won't be missing church. Now here's the part where you will call me a fascist. Do I think the West should prevail in this cultural war. Yes. Why? Because on balance it is the superior and more adaptable cultural. Are there elements of islam that I like? Yes. Are there western cultural elements I don't agree with? Yes. But I won't throw the baby out with the bath water when there's so much at stake. And that's what all your issues amount to bathwater. My willingness to stategically suspend a few freedoms to protect the baby is what makes me, and IMO, all true citizens, a patriot. Finally, what makes me a believer in real money? Fiat has placed our Judeo Christian/ Roman Greco cultural at great risk. Can we survive it? I don't know. But when it is combined with the other forces of secularism and the collapse of our social institutions, I must admit to harboring a "half empty" demeanor. And to be quite honest, you and others, who seemingly operate without a larger philosophy, are stealing what little water I have left.Please forgive me for my inability to participate in the forum on a continuing basis I just don't have the time and today's "day off" posting is a rare exception. I do however have the time to appreciate responses. White Hills (1/2/06; 13:58:37MT - usagold.com msg#: 139955) My mind is made up, don't confuse me with the facts Sir Goldilox:I was waiting to answer you in detail on Saturday or Sunday, when political discussion is allowed, and I will still do that, but here is one fact you can chew on in the meanwhile. The bin Laden flight was on September 20 (see footnote 28 in the 9/11 Commission report, with supporting documents). That was one week after the FAA allowed commercial air traffic to resume at 11am on Sept. 13.Keep the facts straight and don't depend on Michael Moore for your information. If this is representative of your "facts" I am sure that I will find other misinformation when I have time to check all of your other accusations, falsehoods, half-truths, insinuations and "left-wing talking points" parroted from left-wing blog sites such as "freerepublic" See you on the weekend. WhiteHills Thoreauly (1/2/06; 13:28:48MT - usagold.com msg#: 139954) Gold price predictions High: $750Close: $725 specie-man (1/2/06; 13:10:34MT - usagold.com msg#: 139953) RE: Unofficial New Year's contest -- gold high for 2006 and 2006 closing @ White RosePlease see my guess in message # 139930 (point #1). specie-man (1/2/06; 13:08:26MT - usagold.com msg#: 139952) @Druid Thanks,Yes, I think equities may perform reasonably well in 2006. If you buy ownership into a corporation, and that corporation owns assets such as real estate, mineral deposits, intellectual property, etc., then you are indirectly buying "things". specie-man (1/2/06; 13:01:25MT - usagold.com msg#: 139951) typo "private" entities specie-man (1/2/06; 13:00:33MT - usagold.com msg#: 139950) Alternate energy @Goldilox,Yes, obviously there are prive entities working on energy technology. But I don't see much evidence of Governemnt activity in that arena. And if there was, that would be just one more thing to pile onto the budget deficit.Last I heard, they were actually laying off people at NREL (the National Renewable Energy Laboratory). specie-man (1/2/06; 12:57:14MT - usagold.com msg#: 139949) Fed Speak Greenspan appears to enjoy superfolous public speaking. Bernanke seems like a quiet guy. But don't be suprised if "Fed Speak" actually increases in 2006. As the danger level rises, more Fed Speak will be spoken. specie-man (1/2/06; 12:44:28MT - usagold.com msg#: 139948) More on #7 When the Fed raises short-term interest rates, that sends a signal that they are serious about maintaining the "Strong" dollar. With the yield curve tilting towards negative, that sends an additional (but false) signal that recession is coming and that bonds are the thing to buy. So the "masses" (or perhaps I should instead call them "fools" since the "masses" generally don't have any money to invest) come in and buy bonds (and the Fed picks up the slack). And the "smart money" will be more than happy to sell them the bonds. Druid (1/2/06; 12:32:31MT - usagold.com msg#: 139947) @Specie-man "In sum: the Dollar will go down against "things"."Druid: Great commentary Sman. As this plays out, the inversion will become more pronounced but what will become of all that "money" that is scrambling for some form of safety? It's my guess that the Bond Apprentices will head for equities which will cause a massive re-inflation of those markets both here and abroad thus fooling local investors. I believe this is already occurring with the Nikkei. While this plays out, certain Central Bank Masters will be reconfiguring their portfolios by swapping out of US debt and dollar reserves with the ultimate wealth reserve of all time, gold bullion. I'm still trying to figure out the Iran angle and how this fits into the puzzle. It could be that we're in the initial stages of the mother of all re-inflations and that this additional buying power into the equity markets could foretell that the "markets" like the idea of going into Iran and thus provide the justification for it. I don't know but am still thinking on this one. Great post Sman. Gene (1/2/06; 12:16:26MT - usagold.com msg#: 139946) @ specie-man Thanks. That's what I thought you may be alluding to; but I don't see why or how the masses would rush to the bond market for safety under those conditions. I'm not convinced the Fed can manipulate the long end rates w/o flooding the world with dollars. They certainly would have to offer to buy more than were offered for sale to keep the long rates low. I remember the early 80s when rates on the long end hit the high teens or more.Folks who bought then are sitting fat & sassy today, if they held on.This is all interesting conjecture anyway. I guess we can't say how this will end, except we are pretty sure it will end badly.Regards. Goldilox (1/2/06; 12:08:38MT - usagold.com msg#: 139945) managed inversion @ specieman,"What better way to manage inflation expectations than to engineer an inverted yield curve by raising short-term interest rates and by buying (monetizing) longer-term US Treasury bonds ?"Better than stright monetization has been the buying of debt by "trading partners" and "silent" Caribbean accounts. This keeps the spotlght off the FED as an open participant.With foreign CBs falling "out of line", it will be interesting to see who assumes their role. specie-man (1/2/06; 11:33:13MT - usagold.com msg#: 139944) Predictions 2006 - explanation of #7 In years past, when a major economic risk developed, investors would typically undertake a flight to "quality" or "safety". That usually meant buying US Treasury bonds.But what if a major "event" were to occur in the US bond market ? Suppose Asian banks slowed their buying of US bonds, all the while M3 exploded upwards due to the twin deficits (and monetization of those deficits by the Fed). If no one buys the bonds, then the Fed has to.In other words, the so-called bond market "conundrum" is really this:The current flat (or slightly inverted) yield curve is artificial. It is an artifact, purposly created by the Fed to depress inflation expectations. Everyone thinks that an inverted yield curve signals a coming recession. What better way to manage inflation expectations than to engineer an inverted yield curve by raising short-term interest rates and by buying (monetizing) longer-term US Treasury bonds ?In the end, as investors flee the bond market, the Fed will enter the bond market, all the while saying anything and doing anything in an attempt to cover their tracks and to manage expectations and sentiment.In sum: the Dollar will go down against "things". USAGOLD / Centennial Precious Metals, Inc. (1/2/06; 11:05:41MT - usagold.com msg#: 139943) To begin the New Year, Resolve to Learn More about Diversifying your Portfolio with Gold! http://www.usagold.com/gold/special/starter.html Mthirsty1 (1/2/06; 11:01:05MT - usagold.com msg#: 139942) (No Subject) I have enjoyed your discussions the past year and looking forward to the coming year.$640 high,$640 eoy.M. Goldilox (1/2/06; 11:00:53MT - usagold.com msg#: 139941) Alt Energy @ specieman,"Energy suppliers are realizing the pricing power that they have, but I don't hear much about conservation or alternate energy technologies."Without going into tangential detail here, the mainstream media is passing over this topic, but there is actually a lot going on that can be accessed on the internet. Here are just a few favorites for your reading pleasure.http://www.americanantigravity.com/ (news site)http://www.infinite-energy.com/ (news site)http://pesn.com/ThisWeekinFreeEnergy/ (news site)http://www.newscientist.com/ (news site)http://depalma.pair.com/index.html (recently passed on researcher with great position papers)http://www.cheniere.org/ (ret. Lockheed and US Army researcher)http://www.powerlabs.org/ (young post-grad researcher)http://www.jmccanneyscience.com (independent rsearcher) Goldilox (1/2/06; 10:40:30MT - usagold.com msg#: 139940) Amazing, yes http://www.newsmax.com/archives/articles/2003/11/20/185048.shtml @White Hills,Even more amazing that you never address a single issue in your smug responses. POG is not rising in a vaccuum. As many have remarked, it is a very political metal, and reflects the world's political climate.Not that rising repression is "good" for anyone, but many goldophiles recognize that the insurance value of private gold ownership is even more important as we move toward martial law. General Tommy Frank's "Cigar Afficionado" interview was quite revealing. Check it out. Gene (1/2/06; 10:28:15MT - usagold.com msg#: 139939) @ Specie-Man Your item #7 is clear as mud.I hate it when people don't use plain, understandable English. Please be specific. What do you mean in #7? Slowman (1/2/06; 10:27:37MT - usagold.com msg#: 139938) Gold guess for 2006 Its my guess that gold will hit 752 and closet the year at 726.40. Going to be a very good year for gold bugs. I also suspect silver to close at 22 which will be better than gold. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! White Hills (1/2/06; 09:23:33MT - usagold.com msg#: 139937) Who is the real patriot Sir Goldilox, AMAZING! White Hills White Rose (1/2/06; 08:32:44MT - usagold.com msg#: 139936) Unofficial New Year's contest -- gold high for 2006 and 2006 closing I propose an unofficial contest to guess the high price for gold in 2006 as measured in US "dollars", as well as the closing price for the year. Here are the entries so far:24karat: $672 for 2006 high, $660 for EOY 2006Balzac: $672 for June 1, 2006el dorado: $745 for EOY 2006, $677 for April 2006MK: $760 or 2006 highwaverider: $850 for 2006 high, $775 for EOY 2006White Rose: $900 for 2006 high, $830 for EOY 2006Let me add my main prediction for 2006: everyone will be disappointed.I invite everyone to try their hand at predicting the gold price high and ending price for 2006. Goldilox (1/2/06; 04:15:56MT - usagold.com msg#: 139935) Xchange rates @TC,"Deutsche Bank, forecasts a drop in the dollar, with the euro rising to $1.27 by the end of 2006. UBS in London, expects a euro rate of $1.30, and Citigroup in London is the most bearish on the dollar, at $1.36 for the euro."Should we assume by these comments that the prominent bankers expect the "bugger-thy-neighbor's currency" tactics to:1) desist, or2) not work?Although, these levels really just put us back at 2004 equilibria. TownCrier (1/2/06; 03:51:44MT - usagold.com msg#: 139934) Buffett and major traders still see a dip in dollar http://www.iht.com/articles/2006/01/01/news/bxfund.php Bloomberg; JANUARY 2, 2006 -- The investor Warren Buffett and the biggest banks in the currency market - Deutsche Bank, UBS and Citigroup - missed the dollar's rally in 2005. But for 2006, they are standing by their old predictions.These investors and analysts missed the gain by focusing on the U.S. trade deficit instead of a widening gap in interest rates in the dollar's favor, driven by eight Federal Reserve rate increases.Buffett and the analysts say they were not wrong, just early."There are signs the Fed may stop raising rates, so the dollar may go down," said Benedikt Germanier, a currency strategist in Zurich at UBS, the large foreign exchange trading bank.Deutsche Bank, forecasts a drop in the dollar, with the euro rising to $1.27 by the end of 2006. UBS in London, expects a euro rate of $1.30, and Citigroup in London is the most bearish on the dollar, at $1.36 for the euro.Together, the banks account for about 37 percent of the trading in the $1.9 trillion-a-day market for foreign exchange, according to Euromoney magazine.Buffett, who has been selling the dollar since 2002, said the currency should fall because the trade deficit, which grew to a record $68.9 billion in October, keeps widening....according to a statement from Berkshire Hathaway on Nov. 4, the company, which had $926 million of pretax currency losses in the first half, used forward contracts, or agreements to purchase or sell a currency in the future at a preset price.Buffett, based in Omaha, Nebraska, said the United States must introduce tariffs to make imports more costly and do more to promote exports."The policies that we're following are likely to lead to a weaker dollar over a long period of years," Buffett said at a news conference in Boise, Idaho, on June 20. "It's not a forecast for next week or next month or even next year."Debbie Bosanek, an assistant to Buffett in Omaha, said Buffett had no further comment.^---(from url)---^With the above-stated banks accounting for "about 37 percent of the trading in the $1.9 trillion-a-day market for foreign exchange", one has to consider the impact their dollar-bearishness in the coming year may have by way of self-fullfilling activity in the market.R. Knallgold (1/2/06; 03:51:16MT - usagold.com msg#: 139933) Iran What about "unintended" collateral damage to the Iranian oil bourse by some "terrorist" attack?I'm just wondering if the Europeans have more safe "free trading aces" in petto than the likes of Iraq,Cuba,Iran.Btw,during this holiday season I started to read "Geld,Gold und Gottspieler" by Roland Baader,very important book in my view,1 or 2 faults in FreeGold suddenly sticking out.Anyone familiar with the work of Baader? TownCrier (1/2/06; 02:35:37MT - usagold.com msg#: 139932) Gold Trades Near 25-Year Closing High as Investors Diversify http://www.bloomberg.com/apps/news?pid=10000082&sid=aro6l2lEXSHI&refer=canada Jan. 2 (Bloomberg) -- Gold traded near its highest annual close in 25 years as hedge funds and other large speculators may buy more bullion to diversify their holdings. Gold ended 2005 at $517 an ounce, the highest since 1980, after having reached a 24-year high of $541 an ounce on Dec. 12 by buying from investors concerned over widening U.S. budget and current account deficit....The U.S. government reported a budget deficit of $83.1 billion, a record for November. The country's U.S.'s current- account deficit, a shortfall in trade and investment flows, is projected to widen to $759 billion this year from last year's $668.1 billion. That means more dollars need to be converted to pay for goods.The U.S. current account deficit and oil prices pose a "significant risk" to the world economy, European Central Bank Governing Council member Nicholas Garganas said...^---(from url)---^Just as it ever has, the system evolves as necessary in corrective response to similar evolutions of problems and imbalances that arise under the shortcomings of the existent framework.Hence the latest rise of gold, as the major players seek it out, mindful that the era of the dollar as reserve asset has grown past its prime.R. TownCrier (1/2/06; 02:17:14MT - usagold.com msg#: 139931) Gold price likely to remain high http://biz.thestar.com.my/news/story.asp?file=/2006/1/2/business/20060102075421&sec=business January 2, 2006 -- THE price of gold is expected to continue its upward momentum and remain on the high side this year on good investor demand. Analysts believe the climb in global gold price will be driven by strong jewellery sales from the burgeoning middle class in China and India, Japanese consumers' concerns about inflation, recycling of petro-dollars by Middle Eastern investors and muted gold supply growth. "Buying by the central bank will also boost gold price," said an analyst....a trader found last year's run-up in gold price puzzling. "Inflation was tame and the US dollar firmed," he said.^---(from url)---^The trader ought to spend more time reading at USAGOLD; then he'd not be so puzzled by the evolving price.R. specie-man (1/2/06; 01:58:34MT - usagold.com msg#: 139930) Predictions 2006 What is really patriotic:1. To "support the troops" and to support the Government's actions and policies.2. To question the Government's actions and motives and to hold Goverment to higher standards ?Both actually. The common thread is eternal vigilance.I hear all these things about domestic spying, outing of CIA agents, and so on and so on. I hear things about possible attacks on Iran and Syria (what about North Korea ?). An eternal "War on Terror". Whatever happend to the "War on Drugs" ? That is one thing I don't hear much about any more. I guess they found a better war ?I hear plans for keeping the troops in Iraq until the "job" is done. When China ramps up it's space program, will we enter a new space race ? I haven't heard much about plans to "fix" Social Security and Medicare lately. Energy suppliers are realizing the pricing power that they have, but I don't hear much about conservation or alternate energy technologies.So with that, on with the predictions in no particular order or logic, and with no particular reasoning other than gut feelings (I'm psychic, no ?).1. Only one thing IS sure. All of the above is (and will be) very expensive !!! And with the cessation of M3 reporting, the only way we will know how expensive it all really is, is by the price of gold (and silver, etc., etc.). Gold will reach a high of $785 and end the year at $760. Silver will reach a high of $13.05 and end the year at $11.90 .2. Russia has shut off gas supplies to the Ukraine. Ukraine always wanted a "market economy". And now they have it. Be careful what you wish for. Now they must pay market prices for natual gas or shiver. I predict that the Ukraine will threaten to block the pipelines that run through their country from Russia to Europe. A sort of blackmail, if you will. Eventually a deal will be struck - Ukraine will pay higher prices, and Russia will give them a reasonable discount (for a time). Crude oil will hit $86 and end the year at $86.3. The Bush administration will continue to feel the heat of threatened impeachment proceedings. But those proceedings will be averted. The US will suffer a series of small-scale conventional terrorist attacks.4. Iran will be bombed and special forces will conduct limited operations in the country. But no large-scale invasion will occur. The terrain of Iran is vastly more difficult than Iraq. Internal Iranian resistance to the hard-line government will increase, but not enough to overthrow the government. The Iranian oil bourse will proceed as planned, although it will have somewhat of a slow start due to attempts to thwart it. 5. Hurricanes will cause more damage in 2006, but not nealy as bad as in 2005. Major (but not catastrophic) damage will be caused by an earthquake in the US.6. The "Housing Bubble" will lose some air, but will continue to float along defying gravity and expectations of deflation.7. The stock market will not suffer a major crash. The bond market, however, will see a major "event". This will be unprecedented and nothing like it has ever happened before. It will be the conundrum for all time. The bond market will falter, and the masses (like they always do) will initially run to the bond market for cover ! The action will be highly chaotic, and the chips could fall in many different ways. The FED will indeed lose control of interest rates. The yield curve will remain stubbornly flat, but yields themselves will be highly volatile.8. Emergency controls on capital flows may be initiated. Many dollars from overseas attempting to flow into sectors other than the bond market will be blocked. But that will only work for a while as the back-pressure builds and the flows find other routes to avoid the blockage - like water through a leaking (or blown) dike. Goldilox (1/2/06; 00:46:49MT - usagold.com msg#: 139929) Who is the real patriot? @ White Hills,You continually wave the flag but flatly close your eyes to any and all evidence. It's sad that you can't understand that someone can love their country enough to not blindly follow those who stoop to the depths of the Mena Drug Gang that have bought their way into the White House for the last 22 years. By the way, when Ollie North was pardoned by Bush 41 for refusing to testify about his arms for drug deals, who was he selling all those drugs to? Is flooding our streets with heroin and cocaine REALLY in the best interest of National Security?You can echo the babble that we are "not supporting the troops", but who is actually supporting them? Those who want them home alive to do their real job of defending America, or those who send them on misadventures to secure the poppy fields in Afghanistan and the oil fields in Iraq for their private stash? Yes, we get the leaders we deserve. The history of the Bush family profiting from Nazi spoils, running drugs through Noriega, arming hit squads to kidnap college students in South America, propping up Saddam for 25 years, and escorting their bin Laden family business partners from the US on 9-12-01 speaks for itself.Maybe these are all excusable actions to you, but a growing number of Americans are seeking a higher moral ground. We are no longer buying the line that "National Security" means enriching a few campaign contributors and selling out the American worker.I have offered to explore the evidence with you on any Saturday or Sunday, but it seems you are more interested in blind loyalty than examining evidence of abuse. ViewYesterday's Discussion.
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