Alasdair Macleod: The destructive power of weak money

Section:

12:01p ET Thursday, June 9, 2011

Dear Friend of GATA and Gold:

Loose money is bringing on stagflation and soon will renew the world financial crisis, economist and former banker Alasdair Macleod writes in his new essay, "The Destructive Power of Weak Money."

"Gold has only just started to anticipate this risk with its rise from severely depressed levels," Macleod writes. "The Western financial system, which has been in thrall to Keynes, is short of gold, and this folly is about to become more widely understood. Those central banks not sitting at the Bank for International Settlements' high table see the danger, and are accumulating gold. Into this mix is thrown the West's cold-war enemies, who have broken its monopoly of economic sophistication, replacing it with a newer, better model.

"Both China and Russia now have sounder monetary bases than America, Europe and Japan, because their banks are less geared and they recognise paper money for what it is. They have cleaned the market out of physical gold, and are certain to hold considerably more than they officially admit, while the United States is suspected of exaggerating her holdings. Here again, the distortions are simply incredible, with over $50,000 of bank liabilities and monetary base in the U.S. for every ounce of gold officially held by the U.S. Treasury."

Macleod's commentary can be found at his Internet site, Finance and Economics, here:

http://www.financeandeconomics.org/Articles%20archive/2011.06.09%20Weak%...

He will speak at GATA's Gold Rush 2011 conference in London in August:

http://www.gatagoldrush.com/

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



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Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.

Lehrman says: "Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy.

"We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals and working people, 0 percent at the bank, you are not going to encourage them
to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:

http://www.thegoldstandardnow.org/gata



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Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England

http://www.gatagoldrush.com

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Prophecy Resource (TSXV:PCY) and Pacific Coast Nickel (TSXV:NKL)
Begin 8,000-Meter Drilling Program Wellgreen Project

Company Press Release, June 2, 2011

VANCOUVER, British Columbia -- Prophecy Resource Corp. TSX-V:PCY, OTC-QX: PRPCF, Frankfurt: 1P2) and Pacific Coast Nickel Corp. (TSX-V: NKL, US-PINK: PNIKF, Frankfurt: P94) have begun an expansion drilling program on their Wellgreen platinum, nickel, and copper project in the Yukon Territory, Canada. The program has been commenced by Prophecy and will be completed by Pacific Coast Nickel upon completion of the arrangement transaction whereby Pacific Coast Nickel will acquire the Lynn Lake and Wellgreen properties from Prophecy.

The program includes 8,000 meters of solid-core diamond drilling from through September with up to three drills to test at least 17 infill and exploration targets. This drilling will augment the existing resource which is being updated to National Instrument 43-101 standards by Wardrop Engineering, a Tetra-tech company. The resource estimate (based on 701 drillings before 2011) is expected to be released in July. The 2011 drilling is aimed to further augment the
resource estimate.

The grades and type of disseminated mineralization at Wellgreen are highly analogous to those observed in Minnesota's Duluth Complex.

For the complete company statement, please visit:

http://www.prophecycoal.com/news_2011_jun02_Prophecy_Commence_8000_Wellg...