Jim Puplava: The next rogue wave

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8:15p ET Saturday, December 23, 2006

Dear Friend of GATA and Gold:

Jim Puplava of FinancialSense.com has written a wonderful analysis of the explosion of debt and speculation and the profusion of derivatives created to soak up all the money floating around the world in search of a place to land, if only for a little while. Puplava's essay is titled "The Next Rogue Wave" and you can find it here:

Michael Kosares: China wasn't impressed, so get your gold

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"If history teaches anything, it is that government cannot be trusted to manage money."
-- "The Nightmare German Inflation" (Scientific Market Analysis).

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By Michael Kosares
Centennial Precious Metals, Denver
USAGold.com
Friday, December 22, 2006

I read with interest the essay by James K. Galbraith from the Manchester Guardian, "Clueless in China," which was dispatched to GATA's supporters and posted at the discussion forum at USAGold.com. (http://www.gata.org/node/4638)

Spending China's dollars: $16 billion gas project in Iran

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CNOOC to Develop Iranian Gas Field

By Wang Yu
China Daily, Beijing
Friday, December 22, 2006

http://www.chinadaily.com.cn/bizchina/2006-12/22/content_765293.htm

A press official with the Iranian Embassy yesterday confirmed to China Daily that an initial agreement on a gigantic natural gas project has been signed by China's top offshore oil producer and its Iranian counterpart.

"A big deal was hammered out on Wednesday between the two countries to jointly produce natural gas in Iran," the Iranian diplomat revealed on condition of anonymity.

Ecuador's finance minister suggests defaulting on bonds

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Ecuador Bonds Tumble
Amid Talk of Default

By Lester Pimentel and Helen Murphy
Bloomberg News Service
Friday, December 22, 2006

http://www.bloomberg.com/apps/news?pid=20601087&sid=ak87KbrTbFyk&refer=h...

Ecuador's bonds had their biggest-ever decline after the incoming finance minister said the government may restructure its $11 billion debt in a way similar to Argentina, which included a $95 billion default in 2001.

Diamond market is next target for derivatives

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12:15p ET Friday, December 22, 2006

Dear Friend of GATA and Gold:

MineWeb's David McKay reports that the Netherlands bank ABN Amro is planning a derivatives market for diamonds. Good grief -- is the real thing running out there as well, so much so that speculative and investment demand must be diverted from the real thing into paper?

You can find the MineWeb report here:

http://www.miningmx.com/diamonds/522710.htm

Even little Slovenia gets roped into the gold price-fixing scheme

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Slovenia Joins Central Bank Gold Agreement

By Christian Vits
Dow Jones Newswires
Friday, December 22, 2006

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20061222%5cACQDJO...

FRANKFURT -- The Slovenian central bank will become a party to the European gold agreement, the European Central Bank said Friday.

"In the interest of clarifying its intentions with respect to its gold holdings, Banka Slovenije agrees with and becomes a party to the joint statement dated March 8, 2004," the ECB said.

China to spend $2 billion to rescue Zimbabwe

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Zimbabwe, China Negotiate $2 Billion Loan

From Agence France-Presse
Friday, December 22, 2006

http://news.yahoo.com/s/afp/20061222/bs_afp/zimbabwechinaeconomyaid_0612...

Zimbabwe and China are expected to begin negotiations for a two-billion US dollar loan agreement to help stabilise the economy, a state-run daily reported.

"China's government is ready to negotiate with the government (of Zimbabwe) for a two-billion US dollars loan facility to help it fight inflation and other aspects of the economy," Zimbabwe's Ambassador to China, Chris Mutsvangwa, told the Herald newspaper.

Government's power to debase currency is unlimited

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11:49p ET Friday, December 22, 2006

Dear Friend of GATA and Gold:

Here's a case of a government financial official telling the truth -- that government has unlimited power in one respect, the power to debase its own currency, and that currency debasement has become virtually international policy.

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

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S. Korea Has 'Unlimited Resources'

Many GATA favorites to speak at Vancouver conference in January

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5:26p ET Thursday, December 21, 2006

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy will speak (and your secretary/treasurer will applaud) at the Vancouver Resource Investment Conference on Sunday and Monday, January 21 and 22, 2007.

In fact, there will be many GATA favorites speaking at the Vancouver conference, like Bob Bishop of Gold Mining Stock Report; Ian Gordon of The Long Wave Analyst; Peter Grandich of the Grandich Letter; Frank Holmes of U.S. Global Investors; Jason Hommel of Silver Stock Report; John Lee of Mau Capital Management; David Morgan of Silver-Investor.com; Jay Taylor of J. Taylor's Gold & Technology Stocks letter; James Turk of GoldMoney and the Freemarket Gold & Money Report, a GATA consultant; and market analyst and GATA consultant Frank Veneroso.

James K. Galbraith: Paulson and Bernanke were clueless in China

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By James K. Galbraith
The Guardian, Manchester, England, UK
Monday, December 18, 2006

http://commentisfree.guardian.co.uk/james_k_galbraith/2006/12/clueless_i...

Speaking as I rarely feel entitled to do, on behalf of all my fellow professional economists, I felt true, true sympathy last week for Ben Bernanke, as he trailed after Henry Paulson in China.

Paulson's China policy is easily understood. In the United States government the Treasury represents the interests of Wall Street, as Joe Stiglitz has written eloquently from direct observation. An alumnus of Goldman Sachs, Secretary Paulson is ideally suited to his job.