🕐24.06.10 - 23:26 Uhr

Gold over Fiat Currency, Eskay Creek II



Q.: Critics say that historically, under the gold standard, the world economy languished, trade was sluggish, technological and therapeutic innovation was unexciting, in a word: the gold standard has never worked well.

How do you answer that?
A.: This allegation is just the opposite of the truth.

The heyday of the gold standard was during the 100 years period between 1815 (the end of the Napoleonic wars) and 1914 (the start of World War I).

This was the age of transcontinental railways, intercontinental shipping, when all the key inventions were made that ushered in the age of electricity, of the internal combustion engine, of aviation, of wireless telecommunication, of the X-ray, etc.

Financing these discoveries and their applications in transportation, telecommunication, and therapeutics would have not been possible without the gold standard and the accumulation of honestly valued capital that it facilitated.
Dr.

Antal Fekete responding to the contention that gold remains a barbaric relic of the past.
_____ New_LM_Logo.jpg _____
June, 2010 (Update)
The Business of Gold, is the message stale-dated? �.not by a long shot!
If something is working, isolate the human need that is driving it and amplify it.

Conversely if something is not working; either get rid of it entirely or minimize it.

The something that is working around the world? The common sense drive to secure a safe financial future by owning gold and silver.

What is not working is the tattered illusion of security by accumulating the soon-to-fail US dollar.
* Business of Gold in today�s market * Thomas Kaplan, �all in on gold� * Buying gold and silver a vote against fiat currency?
Full Report _____
Global Rebound Anemic: Roubini SAO PAULO (Reuters) - Advanced economies face years of, at best - anemic growth and the very real risk of a double-dip recession as their citizens cope with sluggish employment and highly indebted governments, according to renowned economist Nouriel Roubini. A sovereign debt crisis in the euro zone has rattled financial markets in recent weeks as investors worry that fiscal austerity measures dictated by a $1 trillion European Union-International Monetary Fund rescue plan could stifle already hobbled global growth. In contrast, some emerging markets risk overheating and are showing symptoms of a potential asset bubble. "Labor market conditions will remain very weak in some advanced economies," said Roubini, known as Dr.

Doom and most famous for having accurately predicted the U.S.

housing crisis. _____
Why tens of millions of Europeans want as much gold as they can get their hands on And why tens of millions of Americans will soon be doing the same thing�. The European Union and the euro are beginning to disintegrate because the incompetent bureaucrats who designed the euro in 1998 thought they could take some paper, print some ink on it, and turn it into a currency that everyone would trust.

They effectively crammed the euro down the throats of 500 million people from 27 different nations and cultures speaking 26 different officially recognized languages.

That in itself was a recipe for disaster, a disaster I warned about right from the get-go of the euros birth.

But the seeds of the unfolding euro disaster go even deeper.

The bureaucrats in Europe had more than five years before the euro launched to put in place the necessary fundamental infrastructure for a union and a single currency to work.

But they failed to do so. They failed to unify the tax codes of the 12 different founding countries. Or even the now 27 members. They even failed to put in place uniform labor laws and welfare policies.

They even neglected to make the European Central Bank a true central bank. All 12 original national central banks of the founding states of the European Union � the Bank of France, the German Bundesbank, just to name two � still exist and still have their own independent policies.

The people of Europe as well as investors and traders around the world gave the bureaucrats their chance.

Initially, they even bet the European Union could succeed, and helped push up the value of the euro on international markets over the last few years. But the plans and best expectations for the euro are now failing miserably, the result of initially, the real estate crisis, and now Europes sovereign debt crisis.

Either way, when you build a house of cards, sooner or later its going to fall. Unemployment in the euro zone has now reached 10.1%, its highest level since the euro came into existence in 1999.

More than 23 million European men and women are unemployed.

In debt-riddled Spain, unemployment among those under age 25 is a nightmarish 40.3%. The German economy � considered to be the pillar of the European Union and the euro � is now mired in its worst recession since World War II. Frances economy is also in dire shape.

The countrys deficit is set to hit 8% of GDP this year, more than two and a half times the European Unions 3% limit.

Frances budget minister Francois Baroin is now worried that his own country could lose its AAA credit rating. So its not just Greece, Spain, Portugal or Italy that are in trouble.

Its the entire euro zone.

Is it any surprise that tens of millions of Europeans now despise the euro and are dumping it in increasing numbers? Hardly! Is it any surprise theyre talking about bringing back their francs, marcs, liras, guilders and drachmas? Is it any surprise tens of millions of Europeans are buying gold hand over fist? Hardly! Will it be any surprise then when tens of millions of Americans buy gold like crazy? No way! _____
Our Future? If you want to get a glimpse into the future of things to come in the United States, you need look no further than recent events in Greece. The protests and riots that have been underway because of the unpopular cuts in pensions, wages, and benefits (along with increased taxes) are a precursor of things to come for the world at large. The reason this is happening is that Greeces government spent and borrowed themselves into oblivion, and must now submit to harsh terms in order to receive a bailout.

They have no choice in the matter. They either rein in their spending and raise taxes or suffer the horrible consequences of not getting a bailout, which essentially would mean the death of Greece as a country.

Be safe, be sure�.buy physical gold and silver.

Living in the USA or Canada? Miles Franklin comes highly recommended.

Also worth a comment; Ben Bernanke spoke recently about gold.

What he had to say should simply astound you.

Apparently he admits to knowing nothing about the precious metal! �Well the signal that gold is sending is in some ways very different from what other asset prices are sending.

For example, the spread between nominal and inflation index bonds remains quite low � suggesting just 2% inflation over the next 10 years.

Other commodity prices have fallen recently quite severely including oil prices and food prices.

So gold is out there doing something different from the rest of the commodity group.

I don�t fully understand the movements in the gold price, but I do think there�s a great deal of uncertainty and anxiety in financial markets right now and some people believe that holding gold will be a hedge against the fact that they view many other investments as being risky and hard to predict at this point.� � Ben Bernanke (2010) _____
>From time to time I will share my due diligence efforts with you. Considering the amount of subscriber interaction I enjoy, I do not think I have to mention this; but I will anyway � if you have any questions, never hesitate in contacting me.

Our strength continues to come through the sharing of information; keep the anecdotal information coming! As always, buy gold on the dips.


Speaking of due diligence efforts I do not want anyone to forget Copper Creek Ventures! (TSX.V: CPV ).


Copper Creek Ventures is exploring for gold just a few kilometers away from the world-class Eskay Creek Mine of Barrick Gold Corp.

I always enjoy the debate with my friends from Eastern Canada, as it galls them to have to admit that Eskay Creek was Canada�s premier high-grade gold mine and was the fifth largest producer of silver in the world; producing 3 million ounces of Gold and 160 million ounces of Silver.
I must admit that my favorite deals are small juniors that have the propensity to morph into elephants; and that is exactly what the management of Copper Creek has delivered onto us � the Bonsai property.

A property that could very well turn out to be another Eskay Creek.

The story is simple and sweet; raise the money and drill the holes.
Everyone involved with Copper Creek has the expertise to get the job done and the goal will be to add to the library of knowledge with positive assay results after the late-summer drill program.

I figure ten holes might not tell the entire story, but the results should get us to the point that it might very well be a given that we are talking about Eskay Creek II? _____
Is there a way....yes! Or at least the narrative has started: "To say that the gold standard is not practicable is the same to say that honesty is not practicable, and Constitutions are made to be blithely ignored when convenient.

The American Constitution, for example, mandates a metallic monetary standard for the United States in the clearest possible language.

Opponents of the gold standard have never been able to muster up the moral fortitude to amend the Constitution so as to formalize the abolishing of the gold standard." Dr. Antal Fekete _____
Gold to go parabolic�yes, but what about silver?
No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons - sovereign debt defaults, bankruptcies of �too big to fail� banks and other financial entities, currency inflation and devaluations - which will all contribute to rampant price inflation. Money manager, Peter Schiff, told Business Week recently that, "Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years� and highly respected economist David Rosenberg is of the opinion that "There is no doubt that gold can easily double from here." THE CAUSES 1.

History is No Guide Gold has only been trading freely since President Nixons 1971 decision to deny gold to the French and others attempting to repatriate their paper dollars for the metal.

As such, there has been a scant forty years of gold production and trading since it was detached from supporting paper money. This period has also been marked by substantially higher monetary and price inflation as well as currency devaluation. 2.

Market Manipulation The Commodity Futures Trading Commission (CFTC) recently held a major hearing which blew the doors off bullion metals futures trading markets in terms of what was revealed publically.

I predict this public hearing will be viewed in the period ahead as the precious metals price liberation event of the decade. It is commonly known that JP Morgan Chase in the major player in commodities futures markets trading.

Not only do they take massive naked short positions (betting that prices will fall), they do it with large substantial leverage. What isnt as well known though is that Chase acts as the agent for the Federal Reserve Board and other central banks in managing the markets on their behalf.

Central banks want orderly precious metals markets and prices and currencies which dont gyrate wildly.

Only then can they achieve stealth inflation in their monetary policy which is so beneficial in servicing debt.

It also makes for good (meaning effective) politics.

3.

Insufficient Physical Inventories While it is normal for traders to roll their expiring contracts over into new paper trades, some traders accept cash in settlement rather than the metal.

To the amazement of everyone the recent hearing of the CFTC - specifically Jeff Christensen�s comments - inadvertently confirmed that there is little bullion in storage at the London Metals Exchange or New Yorks COMEX to back the metals trading.

He justified this fact by noting that only one ounce of one hundred traded is paid out in physical metal.


This revelation confirmed a much worse reality than even critics, such as the Gold Anti-Trust Action Committee (GATA), had expected.

It seems that the Asian and Mid East buyers and owners of bullion have been removing gold from their dealers� vaults and are taking it "home" thus leaving much less than previously thought in the London, New York and Toronto vaults.

In addition to what looks like a production peak in the gold mining industry (production has fallen in 5 of the last 8 years), central banks have for the first time recently become net purchasers (having bought more gold last year � 425 tons � than at any time since 1964). The single largest purchasers of metal these days, other than central banks, are the bullion ETFs (Exchange Traded Funds) which ostensibly have their metal inventories in vaults.

These relatively new investment vehicles, unfortunately, are not transparent in their business practices.

Regular audits by reputable accounting firms and allocated and segregated bullion inventories stored in reputable vaults are opaque at best.

This begs the question: �Do the large ETF bullion funds actually have the metal they purport to own, or is their inventory more the paper gold variety in which bullion trading exchanges seem to specialize?� THE EFFECT 1.

The revelation, outlined above, that there is insufficient physical inventory to meet new investment demand for ownership and delivery of physical bullion, is about to blow the price lid skyward.


2.

As public awareness of sovereign debt mounts, it will drive home the reality of mounting government insolvency.


3.

Confidence in currencies will wilt commensurately.


4.

Investment demand for real gold and real money as a safe haven investment will expand exponentially.


5.

These events should take place from mid 2011 through 2012 and extend further out toward 2015 before demand is satiated.


6.

The dramatic price increases in gold and silver will at that point also satisfy the unstated desire of central banks and politicians to devalue their currencies in order to assist them in meeting their debt and unfunded liabilities.

After the 2008/2009 crash, governments bailed out their failing financial institutions and investment banks through a variety of innovative measures. The next time round most governments will not be in a position to do so � again.

Even more troubling, the IMF (International Monetary Fund) will not be capable of rescuing the increasing number of insolvent governments and their financial institutions. Conclusion I am increasingly confident that the consequences of fragile sovereign debt, precious metals market manipulation, insufficient physical supply, and the need for a safe haven investment refuge, will drive precious metals bullion and mining stock to unimagined heights. The circumstances immediately ahead are largely unprecedented.

History is therefore only marginally useful as our guide to the future price of precious metals.

We are now in genuinely unchartered territory. Get yourself positioned to take advantage of this event of a lifetime.

Both Gold and Silver will rise significantly in the coming months and years.

But Silver will far outperform Gold! � Stanislaw Vardy (Gold Focus, Inc.) _____
Who is Miles Franklin�.
For my new readers, here is some information on Miles Franklin background. Miles Franklin was founded in January, 1990 by David MILES Schectman.

There is no Miles Franklin; they just thought it was a wonderful sounding name to use for their new company.

Davids son, Andy Schectman, joined Miles Franklin in 1991.

Miles Franklins primary focus from 1990 through 1998 was the Swiss Annuity and they were one of the two top firms in the industry. They were also a well respected precious metals dealer.

In November, 2000, they decided to de-emphasized their focus on off-shore investing and moved primarily into gold and silver, which they felt were about to enter into a long-term bull market cycle.

Their timing and new direction proved to be the right on the money.


Miles Franklin sells over $100 million a year in gold and silver.

They are rated A+ by the BBB.

They are recommended by many prominent newsletter writers including David Morgan, Jean Paul Louvet, Larry Myles, LeMetropole Caf� and by Richard Maybury in the 90s when they focused on Swiss Annuities. Their reputation for service, education, quality product and pricing is outstanding and I feel confident in recommending Miles Franklin as your source for gold and silver bullion. Larry Myles Larry Myles Reports
Governments lie; bankers lie; even auditors sometimes lie.

Gold tells the truth.

- Lord Rees Moog, former editor of The Times of London _____
At LMR , my intention is to inform, never to annoy.

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