World starting to sense that too many dollars are floating around


China's Reserves Spur Policy Debate

By Elaine Kurtenbach
Associated Press
Tuesday, November 28, 2006

Speculation over China's plans for its $1 trillion in foreign reserves is rattling global currency markets, while fueling a lively debate back home over how Beijing should use its unprecedented wealth.

China's central bank, the People's Bank of China, refused comment Tuesday on rumors that Beijing is shifting its foreign reserve holdings away from U.S. Treasuries, speculation that helped push the dollar sharply lower in currency markets Monday.

Now India is talking about diversifying forex into gold


Tarapore for Increasing
Gold Component
in Forex Reserves

From The Indian Express / Financial Express, Mumbai
Wednesday, November 29, 2006

MUMBAI, Nov. 28 -- Underscoring the benefits of diversifying foreign exchange reserves and the uniqueness of a gold component as part of the forex basket, S.S. Tarapore, former deputy governor of the Reserve Bank of India and an economist, has strongly advocated for increasing the proportion of gold in the country’s forex reserve. He was speaking at a conference, "Foreign Exchange Management: The Way Forward," on Tuesday.

Suspicion of manipulation falls on Treasury repo market


The Bond Market's Dirty Secret

A Whiff of Scandal Threatens
Treasury Repurchase Market

By Katie Benner
Fortune magazine
Tuesday, November 28, 2006

Like greenbacks in a mattress, government bonds enjoy a reputation as a fail-safe investment. The integrity of the $4 trillion-plus U.S. Treasury market is essential, because it keeps investors, particularly big foreign players, pumping cash into the debt-laden federal coffers.

Grandich remarks on market manipulation during ROB-TV interview


9:14p ET Tuesday, November 28, 2006

Dear Friend of GATA and Gold:

GATA's great friend Peter Grandich of The Grandich Letter was interviewed for an hour Monday by Jim O'Connell on "Market Call" on Canada's Report on Business Television and in the course of taking viewer questions about particular mining shares repeated his general endorsement of GATA's complaint of manipulation of the gold market. Indeed, Grandich went beyond that and noted manipulation in the general equity and bond markets as well.

Ambrose Evans-Pritchard: Currency controls for Europe not so far-fetched


11:21a ET Tuesday, November 28, 2006

Dear Friend of GATA and Gold:

Ambrose Evans-Pritchard reported in London's Telegraph yesterday that the prospect of currency controls in Europe is a lot greater than imagined. His column is appended here. It may evoke the statement the U.S. Treasury Department gave GATA last year, claiming the power to seize or freeze any assets, not just gold and silver but also ordinary currency and securities, upon the president's proclamation of an emergency:

Former money manager Armstrong stays in jail for contempt


From Bloomberg News Service
via The New York Times
Tuesday, November 28, 2006

Martin A. Armstrong, the former money manager imprisoned for almost seven years for contempt of court, will remain behind bars for defying a judge's order that he turn over $14.9 million in rare coins and gold bars in connection with a federal lawsuit.

Ford mortgages nearly all U.S. assets to borrow $18 billion


Ford Pledges Major Assets in Financing

By Nick Bunkley
The New York Times
Tuesday, November 28, 2006

DEARBORN, Mich., Nov. 27 -- Executives at Ford Motor Co. have insisted they are willing to bet the company's future on a turnaround plan put in place earlier this year.

On Monday they essentially did just that, mortgaging nearly all of Ford's domestic assets -- its plants, office buildings, patents, and trademarks -- along with stakes in Ford Credit and Volvo, to raise $18 billion.

James Turk: Gold breaks out around the world


11:30a ET Monday, November 27, 2006

Dear Friend of GATA and Gold:

GoldMoney's James Turk, editor of the Freemarket Gold & Money Report and consultant to GATA, today presented seven charts showing gold breaking up and out in major world currencies. Turk's analysis is headlined "Gold Around the World" and you can find it in the "Founder's Commentary" box at the top left of the GoldMoney home page here:

West warned to prepare to be surpassed by China and India


From Agence France-Presse
Saturday, November 25, 2006

SYDNEY, Australia -- Western nations must prepare for a future dominated by China and India, whose rapid economic rise will soon fundamentally alter the balance of power, former World Bank chief James Wolfensohn has warned.

Wealthy countries were failing to understand the impact of the invevitable growth of the two Asian powerhouses, Wolfensohn said in the 2006 Wallace Wurth Memorial Lecture at the University of New South Wales at the weekend.

Oil shows market manipulation is easy even without collusion


By Jeff Donn
Associated Press
Sunday, November 26, 2006

You'd think it was Texas. Dusty roads course the scrubland toward oil tanks and warehouses. Beefy men talk oil over burritos at lunch. Like grazing herds, oil wells dip nonstop amid the tumbleweed -- or even into the asphalt of a parking lot.

That's why the rumor sounded so wrong here in California's lower San Joaquin Valley, where petroleum has gushed up more riches than the whole gold rush. Why would Shell Oil Co. simply close its Bakersfield refinery? Why scrap a profit maker?