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Hypocritical U.S. is tops at currency manipulation
By Aaron Task
Friday, November 12, 2010
After the G20 failed to reach any consensus on currency issues and trade imbalances, President Obama took a direct shot at China Friday, saying the renminbi "is undervalued ... and China spends enormous amounts of money intervening in the market to keep it undervalued."
The president's comments cap (at least for now) a period of extraordinary public debate among politicians and policymakers -- past and present -- over currencies and the Fed's QE2 program.
... Dispatch continues below ...
Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia
VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.
Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia."
The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.
For the complete press release, please visit:
Ahead of the G20 confab, Germany's finance minister, Wolfgang Schauble called U.S. policy "clueless," while foreign ministers from China, South Africa and France (among others) questioned the wisdom of QE2.
Adding insult to irony, former Fed Chairman Alan Greenspan piled on in The FT, where he warned the U.S. is "pursuing a policy of currency weakening." That in turn, prompted a sharp rebuke from Treasury Secretary Tim Geithner, who told CNBC: "We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy."
Michael Pento, senior economist at Euro Pacific Capital, says the U.S. doesn't have a leg to stand on when it comes to discussions about currencies, calling Alan Greenspan's comments the "height of irony and hypocrisy," given his easy-money policies at the Fed.
"The U.S. is the No. 1 currency manipulator on the planet," he says. "We print up a lot of dollars" and "we can consume more than we produce because of that."
But that policy makes for a "chronically weak" dollar and puts America at the mercy of its foreign creditors, Pento says, restating a warning about the risks of a true dollar crash and skyrocketing interest rates if we don't change course, soon.
It won't happen overnight, but China is plotting its own exit strategy by slowing rolling its Treasury holdings into the short end of the curve, he says, suggesting other foreign investors will follow suit.
"The credibility of this country is falling faster than the dollar," Pento says. "One day you'll have a Treasury auction without indirect bidders and only Ben Bernanke" will want to buy U.S. debt, he says.
To avoid such a "watershed event," Pento recommends we adopt the bulk of the deficit commission's recommendations, as detailed here. He also wants a return to the gold standard, a controversial idea World Bank President Robert Zoellick broached this week.
Going back to the gold standard "would be painful" and even lead to a depression in the near term, Pento concedes. But "all the imbalances would be reconciled and we can start over again with a real economy."
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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010
VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit: