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Gary North: Gold audit is a red-alert threat to the regime
11:48p ET Sunday, September 26, 2010
Dear Friend of GATA and Gold:
Market analyst Gary North observes this week that the most vulnerable part of the world financial order is secrecy around national gold reserves and that the most dangerous politician in the United States is Rep. Ron Paul, R-Texas, who is proposing legislation to audit the U.S. gold reserves.
North writes:
"If all the gold is not there, there will be enormous pressure from voters on governments around the world to audit the gold reserves of their central banks. If the gold held in trust by the New York Fed is not there, foreign voters will conclude that their governments' gold may not be there either. The reason is obvious: If a lot of American gold is missing from America's pile of gold at the Federal Reserve Bank of New York, it is quite possible the gold is no longer inside that vault.
"It will occur to Website editors that other central banks have leased their gold to bullion banks, which then sold the gold and invested the money in high-yield government bonds. This would mean that the supposed reserves of the world central banking system have been depleted. It would also mean that the bullion banks, which are privately owned, are in hock to the central banks, because they borrowed the gold from the central banks. Then they sold the gold. They cannot get the gold back to repay the loans, because the price of gold would skyrocket. So the bullion banks could default, and the central banks could be left holding IOUs from bankrupt private institutions.
"If this were to take place, the financial dominoes would begin to fall. There would be outrage around the world by voters, and politicians would hold central bankers accountable for having in fact sold the gold, and hidden the fact by calling the transaction a lease."
North's essay is titled "A Red-Alert Threat to the Regime" and you can find it at Lew Rockwell's Internet site here:
http://www.lewrockwell.com/north/north888.html
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit:
http://www.prophecyresource.com/news_2010_may11.php
