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Wouldn't China love to trade U.S. Treasuries for U.S. gold?
PBOC Researcher Calls on U.S. to Sell Gold to Finance Deficit
By Feiwen Rong
Bloomberg News
Wednesday, November 24, 2010
http://www.bloomberg.com/news/2010-11-25/pboc-researcher-calls-on-u-s-to...
BEIJING -- The United States should cut its government spending and sell some gold reserves to balance its budget and fund its recovery, the People's Daily overseas edition reported, citing Xia Bin, an adviser to the People's Bank of China.
The U.S. has to resolve its "twin deficits" in the government budget and the current account, Xia was quoted as saying. Three ways that may help the U.S. achieve that target include reducing military expenses, selling part of its gold reserves, and relaxing some export limits on technology, he said.
"The U.S. has more than 8,000 tons of gold reserves. Why can't it sell some of it since the country wants to raise funds for economic recovery but doesn't want to add more burden to the fiscal deficit?" Xia told the newspaper. He didn't mention whether China would be willing to purchase any gold from the U.S.
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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:
http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
China ranks as the world's largest foreign holder of U.S. Treasuries, with $883.5 billion as of Sept. 30, according to the U.S. Treasury Department. China should raise its gold holdings and its 1,054 tons of reserves are inadequate compared with the 8,133 tons held by the U.S. and 3,408 tons by Germany, Meng Qingfa, a researcher at the China Chamber of International Commerce, said on Oct. 27.
The U.S. won't be able to get to the bottom of the problem if the government keeps relying on printing money, Xia said.
"The financial market in the U.S. is not short of liquidity, and the money can't get into the real economy," he said. Expanding money supply may not be the answer in the U.S. as the high unemployment there is a structural instead of a liquidity issue, Xia said.
The Federal Reserve said Nov. 3 it will buy an additional $600 billion of Treasuries through June. Policy makers, setting a pace of about $75 billion of purchases a month, "will adjust the program as needed," the Fed's Open Market Committee said in a statement in Washington.
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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 powerplants 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:
http://prophecyresource.com/news_2010_nov11.php
