THE VENUS PROJECT NEWS by George G.
STORIES YOU SHOULD OF HEARD MORE FROM
7.17.2013
8.05.2012
Troika inspectors conclude Greek visit, back in September
"Talks went well, we made good progress. We will take a break and come back in early September," the IMF's mission chief for Greece Poul Thomsen told reporters after a meeting at the finance ministry.
Greece has pledged a series of fiscal and reform measures worth 11.5 billion euros to convince international lenders to keep Athens hooked to a 130 billion euro lifeline and avoid bankruptcy.
With a 3.2 billion euro bond maturing in August and Greek officials warning the state will run out of cash within weeks, the troika's review is crucial for Greece's survival.
"The discussions on the implementation of the program were productive and there was overall agreement on the need to strengthen policy efforts to achieve its objectives," the EU Commission, IMF and the ECB said in a joint statement.
"The Greek authorities are committed to proceeding with determination in their work over the next month," they said.
Athens blames a deeper-than-expected recession for falling behind on its targets and wants to be given more time to catch up. Lenders say slow reforms have not given the program a chance to work.
In comments to Sunday's Ethnos newspaper, Finance Minister Yannis Stournaras said the measures were needed to bring the program back on track and will help Athens restore credibility with its European partners.
"A credible program will allow us to support negotiations on extending its time frame with tangible arguments, which coupled with reforms and privatizations will get the country out of recession," Stournaras told the paper.
Greek officials have temporarily set aside requests for renegotiation while they hammer out fiscal measures for 2013-14, mostly salary, pension and welfare cuts.
"We have done a lot of work to be able to agree today on a fair amount of the 11.5 billion euros of measures," said a finance ministry official who requested anonymity. "We will continue to work so that we can send them some measures by the end of the week. We must conclude by early September."
The cuts are expected to meet resistance from a public fed up with years of austerity and suffering from the worst recession in decades, now in its fifth year.
"We will make every effort so that the measures are socially just," a second Greek official said on condition of anonymity.
Prime Minister Antonis Samaras' conservative-led government also announced the revival of a series of structural reforms to give the economy a much-needed boost if Greece is to ever escape the debt crisis that is shaking the single European currency.
The European Commission welcomed the announcements but urged the country to act on its promises.
The structural reforms announced during the troika visit include trying to revive a privatization program that has stagnated and proceed with a liberalization of markets and professions that has been done only on paper.
(Writing by Dina Kyriakidou; Editing by Catherine Evans and Rosalind Russell)
Related News
- Greece eyes T-bills to cover funding squeeze: ministerSat, Aug 4 2012
- Spain inches towards a full EU bailoutFri, Aug 3 2012
- ECB signals may buy euro zone bondsThu, Aug 2 2012
- ECB's Draghi faces leadership test over euro pledgeThu, Aug 2 2012
- Lagarde says IMF stands by Greece, urges euro zone actionWed, Aug 1 2012
8.03.2012
What Happens to Greece’s Gold when They Exit the Eurozone
Will
Greece Exit the Eurozone?
With Germany’s leaders telling us that the exit from the Eurozone by
Greece no longer holds terror for them, we understand that they are prepared for
such an eventuality. As the E.U. leader’s representatives went to Greece this week to see
the progress on the implementation of structural reforms and the austerity
measures, it became clear to all that while we must wait for the results from
them, Greece is failing in its efforts and further financing will be held beck
for now, at least. Adding to the woes in Greece, there is little agreement
within their Parliament. The Greek government is itself a broad mix of
conservatives and Socialists.
In turn, the leaders of the European Commission, the International Monetary Fund and the European Central Bank, known as the troika, are increasingly divided among themselves.
That is creating even more uncertainty as Greece and the rest of Europe head for
yet another showdown, renewing doubts about how long Athens can remain within
the Eurozone.
Greece’s lenders say they will not finance the country any further
unless it meets its goals. But many experts say that the targets were never
within reach and that pushing three increasingly weak Greek governments to
comply has only profoundly damaged the economy. The belief in many quarters
including in the Finance Ministry in Germany is that the exit of Greece from the
Eurozone is almost certain now.
Officials from the troika overseeing the Greek bailout, the
International Monetary Fund, the European Central Bank and the European
Commission in Brussels, say privately that they doubt the country will be able
to meet its official target of bringing its debt down to 120% of economic output
by 2020. Greece must make the €3.1 billion in bond payments to the central bank
on Aug. 20.
The European Commission reaffirmed that the next tranche of aid to Greece would probably not
be disbursed until September, putting the country at greater risk of running out
of money to pay salaries and pensions.
At the end of last week, the European Central Bank cut off a crucial
source of cash for Greek banks, saying that it would stop accepting Greek
government bonds as collateral for low-cost loans until the E.U. completes its
report, which is not expected until late August at the earliest. Greek banks
must now borrow from the Greek Central Bank at a higher interest rate, from a
fund with limited means; if it runs out Greece would have to start printing
drachmas.
The IMF,
which indicated in March it won’t commit more money to Greece, will make a
decision on its next disbursement in late August at the earliest based on the
troika’s findings, said two fund officials familiar with the situation in recent
days. The IMF has signalled to European officials that it will stop paying
further rescue aid to Greece, bringing the country closer to insolvency in
September. It’s “already clear” to the E.U. that Greece won’t reach the 120%
target. Missing the targets means Greece would need between €10 billion and €50
billion in additional aid, a potential outcome that the IMF is not prepared to
accept. The possibility that Greece could exit the 17- member monetary union has
been voiced this year by European officials who consider the fallout from such a
scenario would be the lesser evil against a seemingly perpetual
crisis.
Greece’s
economy shrank 3.5% in 2010 and 6.9% in 2011 and is expected to contract 7% this
year, a decline reminiscent of the Great Depression of the 1930s. Unemployment
is at 22.5% and expected to rise to 30%, while Greece’s main retailers’
association warned on Monday that sales were expected to drop 53% this
year.
Greece,
which held consecutive elections in May and June as public opposition to
spending cuts grew, risks running out of money without the disbursement of €4.2
billion due last month as the first instalment of a €31 billion
transfer.
The
statements above and the increasingly ‘anti’ stance against Greece brings its
exit to center stage. So it is sensible to look at what happens to it 111 tonnes
of gold it holds in its Gold and Foreign Exchange reserves
currently.
Where’s
Greece’s Gold?
The 111
tonnes of gold owned by Greece is in one of three central banks and perhaps
spread throughout the three. These banks are the Bank of England, the Banque de
France and the U.S. Federal Reserve. We are of the opinion [the Bank of
International Settlements would never disclose the facts] that Greece’s gold was
first used in some of the over 500 tonnes of gold/currency swaps executed two
years ago and unwound last year by the B.I.S.
We
believe, further, that these swaps were undertaken by nations finding it
difficult to raise new loans at reasonable interest rates. The gold/currency
swaps were undertaken as part of the collateral creditors required to facilitate
new loans. As such their value went far beyond the market price of the gold
involved.
When
Greece required a generous bailout from E.U. creditors we were led to believe
that part of the collateral, to be forfeited on default, was the 111 tonnes of
gold owned by Greece. It is this gold that is now in danger of being lost to the
nation now.
The fact
that it is not in the country has allowed it to be possessed by central banks
outside the country that would not hesitate to hand the gold over, on default by
Greece.
Why a
Nation’s Gold is Not Held at Home
It may
come as a surprise that the bulk of the world’s central banks do not hold their
nation’s gold in vaults at home. It has been this way for most of the last
century. While the reputations of the three central banks are impeccable,
nevertheless, with the world in the financial state it is in now, it seems a
matter of prudence that gold should not be in the possession of foreign central
banks. After all when push comes to shove, possession is nine tenths of the
law.
This
became a worry last year to Venezuela who is not the darling of the U.S. at the
moment. Its gold was held in several central banks, including the bank of
England. President Chavez, on the advice of his central bank decided to
repatriate Venezuela’s gold. It was a cumbersome exercise but it was done and is
now held in Venezuela out of the reach of those unhappy with its nationalization
policies. After all there is always a case to be made for creditors whose assets
have been seized to be given recourse to the country assets held outside the
country. This is an increasing danger in a world where the value of sovereign
debt is in doubt in so many countries.
One of
the key reasons for holding gold is to be able to sell it to provide the nation
with access to international trade and loans, when its creditworthiness and its
currency are unacceptable outside the country. By holding the gold outside the
country that gold may well have been appropriated by other nations. We have seen
of late this happen to Iran, all of whose foreign assets have been frozen with
attempts being made to freeze its oil exports. Whether justified or not, the
vulnerability of a nation’s assets should be a factor considered by the
government and central bank of every nation. To allow their assets to be
vulnerable to seizure is an act of imprudence to say the
least.
Should
Greece forfeit its gold as a consequence of its default, then it will be, we
expect, at market prices only. The ability to use its value far above its price
by way of collateral in gold swaps to facilitate loans and lower interest rates
will have been lost entirely. We believe that it is part of a central banker’s
duty to handle their nation’s assets to the full benefit of the nation. That
requires that the gold be in its own possession not in the hands of others who
may seize it because of a policy disagreement no matter how serious it may be
perceived.
If
Greece Leaves Then What Next?
Greece
will, we believe have to leave the European currency entirely, just as Argentina
did in the nineties. After all, the massive loss of creditworthiness will
necessitate a devaluation of the currency. That won’t happen by continuing to
use the euro. A glance at history shows that in this case it is possible that a
value of 50% of the Euro be attributed to the Drachma. In addition there will
have to be a block put on capital exports from Greece. After that we would
expect to see a “Financial Drachma” [ort whatever name the Greek central bank
gives it] in addition to a “Commercial Drachma” instituted in Greece as Capital
and Exchange Controls are put in place to protect what’s left of the financial
viability of Greece.
The
“Commercial Drachma” would be used for normal trade activities of import and
export of good and for tourism. The “Financial Drachma” would be for capital
flows both in and out of the country. We may well go into more detail once these
events have happened, but for now let’s leave it as a currency that could easily
fall by another 30% against the “Commercial Drachma” [say 35% of the exchange
rate value of the euro]. In another article, we may well paint the huge
advantages to Greece of operating such a system.
In
addition we may well see a system of “debt Conversion” being instituted within
Greece to incentivize investment into Greece for infrastructural development and
other projects that would benefit the nation.
|
Priced For Collapse
Where
is the gold price today? If you're like many Americans, you have no idea whether
it went up, down, or sideways. Fortunately, I know my readers to be more
informed - you likely know that after falling from almost $1900, gold has been
trapped around $1600 since early May. But you may still be curious why despite
continued money-printing and abysmal US economic reports, gold hasn't been able
to hit new highs.
Here's
the truth: gold is currently priced for collapse. Many investors believe the
yellow metal has topped out and are selling into every
rally.
Nerves
of Tin
Being
a gold investor is tough business. The last thing any government or corrupt big
bank wants is to have a bunch of people putting their savings into hard assets -
and gold is one of the hardest of all. So we're constantly up against tides of
propaganda saying that gold has no value or is the refuge of
doomsayers.
The
effect of this is that even heavy gold investors are always waiting for the
other shoe to drop. When house prices were rising, no one was worried that the
market had peaked or prices were unsustainable. No one was asking whether all
the thin-walled McMansions going up would actually be worth anything in a
generation. But for gold, Wall Street has been shorting it all the way
up!
Nowhere is this pessimism more evident that in gold mining stocks. Rising inflation has driven production costs higher, but the mistaken belief that inflation is contained and Treasuries are a safer haven is keeping a lid on gold prices. As such, many of the major producers have missed their earnings projections, and their share prices have been punished. This has placed a cloud over the entire sector. In fact, the P/E ratios of major gold miners are near record lows. Stock prices reflect future earning expectations, and judging by the low P/Es, Wall Street expects future earnings to plummet. This likely reflects their bearish outlook for gold, which is generally viewed as a bubble about to pop.
Chronic
Memory Loss
Unfortunately,
there is no public validation for those who have proved the gold doubters wrong.
A couple of years ago, I predicted gold would cross $1500 and even my own staff
thought the call was too risky, too extreme. But I knew then, as I know now,
that at the end of the day the gold price is not a mystery - it's a proxy for
dollar weakness.
Since
most investors do not truly understand gold's economic role, they assume the
10-year bull market must be a mania. But manias show parabolic growth detached
from any fundamental driver. The definition of a mania is the bidding up of an
asset quickly and beyond all long-term justification.
Gold,
however, has grown steadily in inverse correlation with real interest rates, as
explained by Jeff Clark and Mark Motive in past issues of this newsletter. As a
reminder, here's a chart detailing the correlation:
The
Opportunity of the Decade
After
spending the previous fall and winter testing new nominal highs above $1800,
future investors may come to view spring and summer 2012 as the opportunity of
the decade. Gold has shown its strength and retreated. While most investors will
take that as a signal that the market has topped, some will take advantage of
the general trepidation to add to their positions at hundreds of dollars off the
highs.
While
I think gold is a bargain at $1900 considering today's circumstances, the market
phobia of a price collapse is allowing us to buy at well under established
highs. It's as if you already wanted to go swimming, but you found out when you
got there that the pool was heated.
What
Happens Next
I've
seen markets like this before, and by making some reasonable inferences, I have
a good picture of how this could play out. Gold will continue testing the $1600
barrier until it surprises to the upside. This could be spurred by the
announcement of QE III, a calming of fears in Europe, or any shock to the
Treasury market. Treasuries have temporarily overtaken gold as the primary
safe-haven asset. Once that dynamic is broken, I believe the counterflow into
gold will be tremendous.
Right
now, there is a haze over investors. Frightful news from Europe and a slowdown
in Asia have shaken confidence in any asset that doesn't have the steady track
record of US debt. But as I often remind my clients, past performance doesn't
guarantee future results. Any news that wakes investors up to the coming
collapse of the Treasury market will likely trigger a rush into the one asset
with a track record as long as civilization itself.
Prepare
For Collapse
The
key to this market is to understand that a price collapse is coming - but not
for gold. Instead, the market for US dollars and dollar-denominated debt is
headed off a cliff, which will send the price of precious metals
soaring.
Now
is a time for uncommon confidence. Everyone knows Treasuries to be safe, just as
they knew house prices would always rise. Then as now, gold's value and utility
are doubted. But my readers know better.
Peter
Schiff
CEO of
Euro Pacific Precious
Metals
|
6.21.2012
JP Morgan Silver Manipulation From Jason Hommel
Allow me to bring you up to date on what you need to know about JP Morgan's manipulation of the silver market.
It is being exposed, and JP Morgan is failing, and losing money on their scheme.
On April 5th, we were given the gift of JP Morgan's Blythe Masters
giving a TV interview on CNBC where she was trying to claim that JP
Morgan does not hold any position in the silver market, but rather, is
hedging client long positions in silver.
First India Now China To Start Buying Iranian Oil In Gold On June 28th, 2012
Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China’s imports of the metal are already large, and you can guess what additional purchases are going to do to prices.
The legendary Jim Sinclair states that this is the most important event in the modern history of gold, and that gold is officially replacing the US dollar June 28th.
This massively accelerates gold’s replacement of the dollar as the world reserve currency and the average person has no clue what this even means.
This massively accelerates gold’s replacement of the dollar as the world reserve currency and the average person has no clue what this even means.
China Purchases A Record 100 Tons Of Gold In April 2012 From Hong Kong
In the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011.
In
the first four months, imports were 239,174 kilograms from 27,114
kilograms a year earlier, according to Bloomberg calculations.
China's Central Bank Willing To Share $3 Trillion
Brazil, Russia, India and China, the BRIC countries, are back to
talking about creating a unified financial system where they can avoid
euro and dollar volatility. This time, a pooling of Central Bank
dollars from the countries in case liquidity dried up as the world
tracks the West’s crisis momentum.
Regardless of the amount of difficulty involved, the big four
emerging markets plus South Africa said earlier this week they were
considering setting up a foreign-exchange reserve pool and a
currency-swap arrangement in an effort to avoid any credit crisis
stemming from the advanced economies.
China President Hu Jintao
and other leaders met in Los Cabos, Mexico for the G20 Summit. There,
according to the Chinese Foreign Ministry, the leaders discussed the
currency swap and foreign-exchange reserve pool ideas with their
Russian, Indian and Brazilian peers. Hu asked the finance ministers and
central bank chiefs to implement these ideas, according to a story in China Daily on Wednesday morning.
Swap arrangements give central banks the ability to lend each other
money in order to keep markets liquid. The pooling of foreign-exchange
reserves are contingency measures aimed at containing crises such as the
one roiling the eurozone, analysts told the paper.
If, for example, oil prices collapsed to 2008 levels of around $40 a
barrel from the roughly $85 today, and if oil dependent Russia was in
need for a few million dollars after rummaging through its own sizeable
cash account at their Central Bank, they could, in theory, borrow from
China’s $3 trillion international reserves. That would give the market
some confidence that Russia is not forced to wipe out its reserves,
sending Russian debt costs higher as investors wonder whether a
country’s “rainy day” fund is enough to handle its obligations to bond
holders.
5.25.2012
Central Banks boost gold holdings, again.
Latest
figures from the IMF show that Central Banks have continued to increase
their gold holdings significantly in April, after a big increase the
previous month.
The latest official Central Bank gold holding figures from the IMF
confirm that Central Banks around the world are continuing to buy gold -
some in pretty large quantities which should be yet another stabilising
factor for the gold price - and if the trend continues suggests that
the CBs will buy even more this year than last - and that's only the
ones which let the world know exactly what their gold reserves are!
The latest figures not only show some substantial gold buying in
April, but also a big lift in gold purchases by The Philippines which
actually date back to March, but were slow in being notified to the
IMF. The Phillipines' March gold purchases amounted to no less than
1.033 million ounces - 32 tonnes - of the yellow metal - the biggest
volume since Mexico bought around 78 tonnes a little over a year ago -
and increased tet country's gold reserves by almost 20%.
The Phillippines was not the only laggard in reporting increased gold
reserves though. Tiny Sri Lanka raised its reserves by an even greater
39%, but dating back to January, with a rise of 2.177 tonnes to 7.807
tonnes - obviously far less significant in the global picture but yet
another indication of the perceived significance of gold in particular
in the Asian economies.
The most significant reported gold purchases in April itself included
29.7 tonnes by Turkey (a 14% increase in its reserves, but this is
thought to have largely been due to its policy of acceptance of gold as
collateral from commercial banks), 2.92 tonnes by Mexico, 2.02 tonnes
by Kazakhstan, and 1.4 tonnes by the Ukraine.
The continued buying by Central Banks does continue to indicate an
underlying unease about the sovereign debt situation and its impact on
the value of some key reserve currencies- not least the dollar and the
euro.
In an email to Mineweb respected New York gold analyst, Jeff
Nichols, commented "The lastest IMF data on central bank gold reserves
was just released earlier today -- showing gold purchases by Mexico,
Kazakhstan, Ukraine, Russia, and the Philippines. Undoubtedly, China and
perhaps a few other countries bought gold but did not report their
purchases to the IMF." This reiterates the widespread belief that some
countries - of which China is thought to be the major entity - for
political reasons do not report their total holdings to the IMF, but
hold new gold purchases in accounts that are not reported until it is
considered politically expedient to do so. Last time China reported an
increase in reserves was in 2009.
Since then there has been much speculation that China could be
building up its reserves at a rate of four or five hundred tonnes a year
or more given the level of domestic gold production and the big surge
in imports seen. Although China is the world's sixth largest holder of
gold, the metal only represents a tiny 1.8% of its reserves and there
have been a number of presumably government approved (is there anything
else in China?) statements by officials that do suggest the nation is
carefully buying on dips in the gold price so as not to create
disruption in a relatively orderly global gold market.
Overall reported Central Bank gold purchases last year amounted to
over 450 tonnes - the highest for nearly 50 years and The World Gold
Council and GFMS have suggested that this year will see another 400
tonnes or more flowing into Central Bank coffers - and the purchases to
date suggest that this target may well be achieved. Gold may have
fallen out of Central Bank favour for a few decades but the realisation
now is increasingly that it should be a significant part of a country's
foreign reserve base as fiat currencies the world over lose their
intrinsic value.
5.21.2012
4.10.2012
3.04.2012
6/4/1963, A known attempt was made to strip the Federal Reserve Bank (a private corporation) of its power to loan money to the U.S. Gov't at interest
6/4/1963, A known attempt was made to strip the Federal Reserve Bank (a private corporation) of its power to loan money to the U.S. Gov't at interest. On that day President Kennedy signed Executive Order #11,110 that returned to the U.S. Gov't the power to issue currency, without going through the Federal Reserve. The power was taken from the gov't on 12/22/1913 when the federal reserve act was signed. It handed to the few men that own the federal reserve bank of new york sole power of a country's money. This private corporation owns the right to print our money and issue it charging interest, setting the interest rate. Ultimately keeping the gov't, and citizens forever in debt.
President Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury
With the stroke of a pen, Mr. Kennedy was on his way to putting the federal reserve bank of New York out of business.
If enough silver certificates were to come into circulation; they would have eliminated the demand for federal reserve notes.
This is because the silver certificates are backed by silver, and federal reserve notes are backed with nothing. Worthless.
Executive Order 11,110 could have prevented the national debt from reaching its level, which is close to 70 trillion dollars. An inconceivable number. It also would have given the gov't the ability to repay its debt without going to the federal reserve and being charged interest in order to create the new money.
Executive Order 11,110 gave the U.S. the ability to create its own money backed with silver.
He was assassinated 5 months later. No more certificates were issued.
Executive Order 11,110 was never repealed by any U.S. President and is still valid.
No President has utilized it since.
President Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury
With the stroke of a pen, Mr. Kennedy was on his way to putting the federal reserve bank of New York out of business.
If enough silver certificates were to come into circulation; they would have eliminated the demand for federal reserve notes.
This is because the silver certificates are backed by silver, and federal reserve notes are backed with nothing. Worthless.
Executive Order 11,110 could have prevented the national debt from reaching its level, which is close to 70 trillion dollars. An inconceivable number. It also would have given the gov't the ability to repay its debt without going to the federal reserve and being charged interest in order to create the new money.
Executive Order 11,110 gave the U.S. the ability to create its own money backed with silver.
He was assassinated 5 months later. No more certificates were issued.
Executive Order 11,110 was never repealed by any U.S. President and is still valid.
No President has utilized it since.
2.24.2012
Adrian Douglas Speaks About Silver
`Adrian Douglas was born in 1957 in England. He graduated from Cambridge University in 1980 in Natural Sciences. He worked for 20 years in the Oil & Gas Industry with Schlumberger where he reached senior management positions in Marketing and Sales. Adrian established a highly successful consultancy business specializing in pricing and marketing called InnovoMark - Innovative Marketing - www.innovomark.com. He developed unique methodologies related to pricing and marketing which have been incorporated into proprietary training programs.
The study of commercial enterprise pricing led to a deep interest into the market pricing mechanisms of financial assets. As a result Adrian developed a unique algorithm and methodology for analyzing financial futures markets, and in particular identifying appropriate entry and exit points. The technique has been named "Market Force AnalysisTM" (MFATM) and a patent is pending. Adrian has been interviewed for various internet radio stations and for TV as well as making presentations at investment conferences.
Adrian is also a Director of the Gold Anti-Trust Action Committee (GATA); a non-profit organization that is an advocate for a freely traded gold market.
2.22.2012
American Silver Eagle
The American Silver Eagle is the official silver bullion coin of the United States. It was first released by the United States Mint on November 24, 1986 and is struck only in the one troy ounce size.
The Bullion American Silver Eagle sales program ultimately came about because the US government wanted, during the 1970s and early 1980s, to sell off what it considered excess silver from the Defense National Stockpile.
"Several administrations had sought unsuccessfully to sell silver from the stockpile, arguing that domestic production of silver far exceeds strategic needs. But mining-state interests had opposed any sale, as had pro-military legislators who wanted assurances that the proceeds would be used to buy materials more urgently needed for the stockpile rather than merely to reduce the federal deficit." Wall Street Journal
More American States Now Seeking Silver And Gold Currencies
Concerns that the Federal Reserve System and the United States dollar could collapse at any moment, legislators across at least 13 states have begun to seek out alternative currencies.
Representatives in states including Georgia, Iowa, Minnesota, Tennessee and South Carolina have begun their quest to gain approval from their state government to issue their own alternative currency or even just explore it as a possible option.
“In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State’s governmental finances and private economy will be thrown into chaos,” A Republican Rep said.
Under the United States Constitution, states are not allowed to print their own paper money or issue their own currency, however it does allow states to make “gold and silver Coin a Tender in Payment of Debts,” which means that states are able to create a competing, alternative currency market based on precious metals instead of the fiat currency we call the dollar.
2.15.2012
BLUE GOLD
The global water crisis and the commodification of the world's water supply
A Finite Resource
It is commonly assumed that the worlds water supply is huge and infinite. This assumption is false. In fact, of all the water on Earth, only 2.5 percent is freshwater, and available freshwater represents less than half of 1 percent of the world's total water stock. The rest is seawater, or inaccessible in ice caps, ground water and soil. This supply is finite.
As Allerd Stikker of the Amsterdam-based Ecological Management Foundation explains "The issue today, put simply, is that while the only renewable source of freshwater is continental rainfall (which generates a more or less constant global supply of 40,000 to 50,000 cubic km per year), the world population keeps increasing by roughly 85 million per year. Therefore the availability of freshwater per head is decreasing rapidly."
Most disturbingly, we are diverting, polluting and depleting that finite source of freshwater at an astonishing rate. Today, says the United Nations, 31 countries are facing water stress and scarcity and over one billion people lack adequate access to clean drinking water. By the year 2025, as much as two-thirds of the world's population-predicted to have expanded by an additional 2.6 billion people-will be living in conditions of serious water shortage and one-third will be living in conditions of absolute water scarcity.
World Resources, a publication of the United Nations Environment Program, the World Bank and the World Resources Institute, has a dire warning "The world's thirst for water is likely to become one of the most pressing resource issues of the 21st century...ln some cases, water withdrawals are so high, relative to supply, that surface water supplies are literally shrinking and groundwater reserves are being depleted faster than they can be replenished by precipitation."
Groundwater over-pumping and aquifer depletion are now serious problems in the world's most intensive agricultural areas. In the U.S., the High Plains Ogallala aquifer, stretching some 800 miles (1,300 km) from the Texas panhandle to South Dakota, is being depleted eight times faster than nature can replenish it. The water table under California's San Joaquin Valley has dropped nearly ten meters in some spots within the last 50 years. Twenty-one percent of irrigation in the U.S. is achieved by pumping ground water at rates that exceed the water's ability to recharge (and most water used for irrigation cannot be recycled).
Continue reading:
http://www.thirdworldtraveler.com/Water/Crisis_BG.html
2.13.2012
Athens In Flames
Feb 13, 2012
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Eric Sprott: Mania. Manipulation. Meltdown.
James Turk reaffirms his $400 long-term silver target
Julian D. W. Phillips: Why will Capital Controls Boost Silver
David Morgan: Silver in the next Decade