I have another question: What do you think of the warrior/intellectual/acquisitor/laborer cycles of P.R.Sarkar. There seems to be alot of logic to this, and it fits right in with the Kondratiev wave cycle. I think the acquisitors will lose their control of SEAsia very soon to the laborers -- leaving an open door to the warriors to take over as the cycle begins anew.

The Bank of Russia said on this week its

reserves of foreign currency and gold fell to

US$16.809 billion on December 1 from about

$22.916 billion a month earlier as it spent cash to

prop up the rouble and the debt market.

The hardest phase of the last and the coming

year we have already endured, Bank of Russia

chairman Sergei Dubinin said. I don't think we

will see anything like a currency crisis in the near

future.

The bank held about $4.609 billion in gold as of

December 1, according to the central bank's

website - up from $4.04 billion at the start of the

year and $4.467 billion on November 1.

The Bank of Russia values its gold at $300 an

ounce. The spot price of gold was earlier at

$296.25.

The bank has maintained a steady policy of

buying gold on the domestic market this year and

Mr Dubinin had said it expected to keep buying

gold.

Right now, however, it might decide to defer

purchases simply because it had nowhere to put

the metal.

The bank was expected to stop buying gold from

Russian banks until January 9 because its

warehouses were stuffed with the banknotes it

would introduce on January 1, Commersant Daily

said.

Here is a chart of the spread between the long bond and ninety day money. The values are in basis points ( 1 basis point = .01% i.e. 100BP = 1% )

Noranda, is in on the game, blame outsiders for the destruction of a nations park land, yet, the purpose of the game, is a push by USofA corporate interests, to use park land, as the GOLD of the USofA is being loaned, so will the park land of the USofA be loaned, to gain an interest payment on land, that from an economic point of view, is not paying for itself.

Gold is not paying for its storage fees, so the government via Federal Reserve Bank interests, are loaning the GOLD.Park land is also being loaned, ALL, is, as it should be, Business taking care of business.

Corporate Business, is using Noranda, to test the USofA government. The issue is a done deal. Compromise will be the order of the resolve. The issue, assisted a President of the USofA to look good, and supported his re-election. Now it is time to get back to Corporate business.

New game plan, is to suggest the small investor, ( mom & pop ) must be protected, and the tax payer ( workers ) must be protected. Government must open up park land, to protect small business. ( mom & pop )

Also, SDRer_A @ 17:56, puts forth the question are either of these loose definitions applicable nowadays when describing Inflation & Deflation.

Hell, the person with the gold, makes the rules. We are the problem, we believe the B.S. that is feed to each of us. We are MUSHROOMS, the vested interests, feed us horse shit, and keep us in the dark.

Take Care.

G'Day,

I am glad to see that my North American Kitcoites are now adding some culture to their life.

You have, however, got THAT Haggis mixed up with the OTHER Haggis - the one that runs around hills, with one leg shorter than the other. A common gaming sport in Scotland.

I am sure that jOHN dISNEY will only be too happy to recite Robert Burns Address to a Haggis. jOHN, in case you have forgottem, I will help you with the first verse........

Fair fa' your honest, sonsie face,

Great chieftain o' the puddin-race!

Aboon them a' ye tak your place,

Painch, tripe, or thairm:

Weel are ye wordy of a grace,

As lang's my arm.

.....................

Carry on jOHN - sounds like a movie.

Aye, Haggis

G'Day,

The Asian bailout is to be focused through Banks, I assume selected banks with off spins to their proxy speculators - if so which ones. Looks like a case of robbing Peter to pay Paul.

One issue that interests me, is the off spin of gold derivatives/futures from Central Banks to proxy Commercial Banks/Brokers. In the US, by law, is there required to be in existance a clear demarkation between a Central Bank and a Commercial Bank/Broker in theory, and if so how does this work in practice. The idea of the FED printing funds for Peter and Paul is rather questionable, especially if, at the end of the day, it ends up back with the FED. Under this system, there is no end result.

Aye, Haggis

G'Day from Kalgoorlie.

Last June I did a technical review of a gold mining operation in Mindanao , a southern island in the Philippines. It was an interesting 4 day exercise. Two years ago the mine made US$ 100 million profit, last year US$ 20 million, and this year not a brass nickel. What have we done wrong? was the question from the owners, the reply essentially you have mined out your existing reserves and failed to advance your exploration for re-establish resources and reserves. What struck me about this particular mine in that particular location was that ZERO cash, apart from minimal wages, was put back into local infrastructure and facilities, either locally or elsewhere. Added to that we had a song and dance act concerning our professional fees, STILL waiting to get paid, six months later.

If this is a relevant example of doing business in SE ASia, the question is then raised - why should there be a sustained effort to b

Mexico vs---------------------- Canada

Inflation 30%----------------- 1-2%

unemployment 30%+--------------9.5%

budget deficit 7%+-------------surplus

The order will be Mexico, Canada then U.S.

BTW, thanks for correcting me on the spelling of xenophobia. Maybe I was thinking of the mystical tone of many of your postings...the zen-like nuances. Then again maybe I need spell checker.

CONGRESS BLASTS PLAN TO PAY CANADIAN

FIRM TO NOT MINE NEAR YELLOWSTONE

WASHINGTON ( AP ) -- A Clinton administration proposal to pay a mining company $65 million to abandon a gold mine near Yellowstone National Park ran into scathing congressional criticism Thursday over how it would be financed.

Several Republican politicians representing agricultural states accused the White House of paying off the Canadian mining company, Crown Butte Resources Ltd., at the expense of a popular agricultural conservation program.

The administration says it has offered Crown Butte $65 million in cash over a number of years as part of an agreement reached last summer to abandon the New World Mine north of Yellowstone.

The proposed gold mine has been the focus of intense controversy for years as environmentalists maintain it would threaten one of America's premier national parks and contaminate a significant watershed outside the park.

The company, controlled by Noranda, has yet to say whether it will accept the offer. Some aspects of the agreement must be approved by Congress.

The White House says the money would come from royalties the Interior Department receives on coal, oil and gas leases on federal land in Montana.

http://canoe2.canoe.ca/NewsNewswires/Crown-Butte.html

My intuitive feeling -- with no solid facts to back this up, is that the US economy/dollar is still too strong for that outright crash, and that we must be softened up with a period of inflation before our inevitable deflationary episode. I know D.A. thinks we will have an inflationary period. Perhaps what we need to do is entice D.A. into explaining his reasoning to resolve these issues.

I Believe that the rangold group quarterly results will come out

sometime around January 22 ish. However, I believe that short of some

form of divine intervention, they are going to be awful.

Durban's only hope of success would be, for example, to have arranged

a licensing agreement with the Bernatz Alchemy Inc Gold Wizard process

- seems to be taking the industry by storm - I think it was first used somewhere in the Pyranees.

This approach on cost side is not sustainable forever and company profits will eventually go down. Money I spend on aditional med. cost ( to increase a company profit ) way won’t make it to market to buy other products ( just as well money I don’t get in my paycheck won’t make it to market place )

On the revenue side, you know that we are reaching the point when there will be a fierce competition for global market ( and such competition in the past ended in two world wars WWI and WWII ) . Don’t bet that approach the US took in the past will work ( negotiation from the point of view that everybody will bow to the almighty US ) .

Expectations won’t make it, and there is not much you can squeeze from expense side on company books. Accounting is essential for running business, however, it is useless when you are trying to determine where what is happening in the country or in the world and to value financial assets you need to consider these factors more than P/L statement of the company.

It is clear now ( hindsight is 20-20 ) that the subsequent rising of the dollar associated with the dropping price of gold had much to do with the demise of the SE Asian currencies. If certain powers that be engineered this process to trip up currencies rigidly linked to the US dollar, it would have been diabolical indeed! I think the more likely explanation is that certain CB's desperately needed dollar reserve funds for a hidden crisis of some kind, and inadvertently triggered something much worse for the rest of the world in the process. Another fairly well-accepted rumor is the one about the need for a favorable balance of trade between Europe and US, until the effective April 31,98 deadline for the Euro -- hence the need for a strong dollar.

As someone wisely pointed out on this site, diabolical plans as a cause of a crisis are relatively rare, as ineptitude, or the inability of different nations to work together are much more common.

experience ) that there are two types of folks who frequent this site.

First, there are the died in the wool goldbugs, along with some others

such as traders and geologists etc. who fervently want gold to come back because their livelihood depends upon it for some reason ( either they work in the industry or they trade gold in some form ) OR the second

type of person ( such as myself ) who is trying to educate himself about

the industry. I am a businessman and can normally follow logical

arguments and their flow on effects. I think this is a tremendous

site with many points of view and I have learnt ( and am learning ) a lot

here about international finacne, the gold industry and market and the

technical charting of stocks, etc. That's all for now .

JTF -Nick- Mike -SDRer and All

Just after posting the message to Haggis, my husband tool a strange turn- and I had to fly off. This is just a pause whilst waiting for my son to come back with him- but I was going to catch up on my mail and scrolling etc this am- it was impossible.

Take care all, -regards C

Dear Mr Haggis

It is clear that I must fascinate you - What ever in the world

did I do to get SO much attention from one wee dreary scotsman

And I cannot help but get the feeling that you are trying to get

a rise out me - sorry old bean - not interested - busy trying to

find axe murderers that might be lurking in the old Kraal.

For background, I lived about 5 years in Adelaide, and one in

Melbourne. I love Australia, and miss it. I also still have a house

in the Pyranees mountains in a place called Andorra. I lived there

for 3 years. And I was born in the USA. I could live in any of the

three places if I wanted to leave the Cape. But I choose to stay

here - Now why is that Haggis

Use your wee brain and see if you can figure it out -

In any event, we are not competing tourist agencies and Im sure

Western Australia is a fine place. But I live here and I like it. And

Im mainly interested in the economics of gold mines not geological discoveries and I have no opinion on the Zambian play you mentioned.

I doubt if your question on the gold service was serious but Ill

answer it anyway - the answer is No - I dont subscribe - I dont like

other peoples tips - I simply like the data - and I think people

should make their own minds up on that basis.

Aieeeeeee!! Bonzaieeee !!

Looks like EB had a great time in Calif too! I don't think those Calif Girls had a chance! Right, EB?

Would I be right in guessing that you are still celebrating Christmas?

We know that markets can be synchronized by a major event such as a correction ( or worse ) . It seems that natural events follow the same rules as well. And a supernova blast sweeping the Heavens would beat a market correction anyday. Even an economic depression would be like a popgun going off in comparison. Natural cycles could be synchronized by a Supernova for thousands of years.

I find it interesting that one can now extend the concepts of the fibonacci series/Gann plots/Elliot wave analysis/Fischer logarithmic spirals, etc to natural phenomena. Mike -- as an Astrologer you probably alread knew of suspected this. I knew that the essence of Astrology could be unraveled by following the markets, but I did not know that the unraveling of some of Nature's greatest mysteries might come so quickly.

I wish I understood all of this better -- it still seems to me that we can only get glimpses of God's machinery this way -- but not the underlying principles. I suspect that Einstein was just as frustrated.

Did everyone notice F. Veneroso's comment last week that the BIS historically was the site of gold lending, but that the CB's decided to move the gold sales/loans to private brokers? ANOTHER said essentially the same thing months ago, but in more mysterious language. ANOTHER also said that a Rothschild set up the BIS -- the Central Bankers Bank of last resort, and I think the only bank in the world whose currency has a fixed conversion in ounces of gold - a true gold standard! I would love to hear what a Rothschild would have said about that CB departure from standard practice which lead to opening of the gold market -- since they were obviously in the know. Did they encourage or discourage?

Regardless, it seems the flood of gold loans/sales is over. I suspect the Rothschilds are now more worried about their diamond cartel than they are about their gold cartel. Diamond prices are more subject to price drops in deflationary times than gold prices.

G'Day,

Interesting article.

How do you view Rothchilds involvement in Central Banks and major gold mining companies?

Given that derivative/future gold dealings are reported to have caused a physical vacuum of 8 000 tonnes of gold, how would you view Rothchilds involvement in this as a short term strategy.

On the other side of the coin, and given that Greenspan and Rubin may be proxies of the Rothchilds, how would you view Rothchilds involvement in a medium to long term implementation of a GOLD STANDARD, with particular reference to getting China and Japan under control and involved in a GOLD STANDARD.

Rothchilds have been, and are, active financiers of gold exploration and mining companies for a very long time. They are Masters of the Double Edged Sword, and are extremely unlikely to distribute gold openly to the masses.

What do you think.

Aye, Haggis

G'Day

No disrespect is intended to you and jd. After having lived in SA, Australia and many other places, I only intend to highlight that life is Aussie, in particular Western Australia is fairly open when compared to others. No panic buttons, barbwire etc here. One can drive out of the drive way unhindered.

I would suggest that life in Jo'burg and for example Manila is some what difficult, depends what you are used to and accept.

It must be remembered that Western Australia is approximately 6 times the size of South Africa, with 3 million people as opposed to 46 million in South Africa. Western Australia is a pretty good place to invest in gold exploration and mining.

With respect.

Aye Haggis

You must know that in Johannesburg I for one have NEVER lain awake at night waiting for an axe-murderer to break in!! Can't speak for the Cape - JD But I felt quite upset & protective about my beautiful Jhbg- bad things happen all over the world... and we all have to take our chances.

A Sangoma comes over regularly to 'clean up' and protect my places and there very little in the line of barbed wire or bars, unless it was there to start with!

Johannesburg is a very beautiful place, which you're welcome to come and visit at any time and see for yourself!! Have a dear little guest cottage [ for free to Kitcoites [ the nice ones]

Regards- Colleen

G'Day

I would appreciate your comments on the GLOBAL GOLD service.

It was a pity that you had a break in at TOORAK ( top end or bottom end ) ; but no axe murders. It would therefore appear that you have the best of both worlds in South Africa, with the potential for both!!

I would also appreciate your comments on gold exploration and mining potential in Zambia ( that is in Africa, in case you don't know ) , in particular the area of the Big Concession Mumbwa District near the Kafue Loop ( I understand that Anglo and Equinox are active in an area identified by yours truely 20 years ago ) , and NE Zambia in the Archaean greenstone belt just over the border from the BIG finds in Tanzania ( in the area where the OTHER famous Scotsman David Livingston died ) .

Aye, Haggis

G'Day,

You have most likely never yet ventured out of your Kraal.

Given that it is Christmas, you should try hard to make niceness your byword, no matter how many people walk all over you. Try and keep your simmering resentment to yourself.

You should try to enliven your world by telling everybody what you really think of them, and encourage them to do the same to you.

Hope that you a enjoying Xmas...

Aye, Haggis

Been here nine years - not seen an axe murderer yet nor been

burgled - but burgled twice in TOO-RAK - no axe murderers though.

Hard to see you getting mines or anything else out of the sh*t.

Try numbers scotsman - Your language is too hard for me - ie

CRAPSPEAK

aieeeeee !!

yuk,yuk........

away...

Éßcheckinginbeforedrivinithome...uhuh.

go steve miller...............yeah...........aaaaaaaaaaaah...

For tolerant - I LIKE your attitude - trust the barbarians - soliloquy gone mad - excellent stuff. Keep drinking and writing

it did a lot for E.A. Poe and many others.

For Haggis - I cant remember - is it Scots aren't good with numbers

or geologists aren't good with numbers or is it Scottish geologists

aren't good with numbers Can you help me on this ?

Aieeeee

For Haggis

Sorry - I was sure that it was MacWhistle - Grand idea with

the siren and flashing light - love it - thanks again

Got message will revise calculation. 110 mill reserves of gold at

50/1 is say 2.5 mill oz of gold equivalent.

Salient point of prime is gearing to silver price.

Anyway I prefer this method of analysis and communication to talking a bunch of crap.

For Salty

I think it was Ian MacWhistle.

The Scots peaked out with the steam engine - down hill ever since.

Crusty

If you're out there in KitcoLand Joannie - I Love YOU

Crusty

the methodology, and and soon as I have made MY spreadsheet, ( which

not even started yet ) - will send anybody an evaluation based

on that methodology. My motive is to substitute numbers for the

vast piles of qualitative bullsh*t on mine values - ie deep,

high cost, strike prone etc etc. lets all do some numbers and

talk a bit less. Who knows we may even start knowing what we are

talking about.

OMYGOD, we cant have THAT - the discussion will be ruined, and we

will just have to talk about cricket and the movies and stuff.

There is still 3 to 5 dollars to be made ( maybe more ) no matter what the real cause might be.

Did anybody care that it was the Hunts who drove the price to $50 when they bought at $5 or $6?

All markets are minipulated by somebody, if we are going to make money in them we have to be on the right side and let it play out. I will short silver just as soon as it is warranted and so should you.

Fundamentally and technically silver should be bought on pull backs of 8 to 15 cents ( if you get the chance ) .

To surprise and dismay - silver is IN the calculation. 12 Million

oz of silver sounds REALLY BIG TIME - buttttttttt- try dividing

by 50 to convert to gold equivalent. - 240,000 oz.

Also 2/3 of their net assets are resource assets - I dont think

these asset are worth much after PM are extracted -

More like a liablity - ie a big hole in the ground that must be

returned to its virgin state to make greenie inclined people happy

along with mother nature. Prime do have maybe a buck a share in cash.

and one report refers to a 9 year life.

Buy - Enjoy - be happy - life's but a dream - But I'm not

having any prime, until I have a MUCH clearer picture of

reserves thanks very much

thanx - Miro