You are here

Resort to SDRs for next bailouts will spur rush to gold, Rickards says

Section: Daily Dispatches

11:32p ET Tuesday, September 11, 2011

Dear Friend of GATA and Gold:

Geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London last month, tonight tells King World News that the major Western industrial powers are likely to start resorting to the "Special Drawing Rights" of the International Monetary Fund for the cash needed for the next round of bailouts. And when that happens, Rickards says, "the game really is over. It will be very transparent that we're just replacing one kind of paper money with another kind of paper money and that is going to accelerate the rush to gold."

If Rickards says it, ordinarily it's a lock, but let's add one contigency. As long as prospective purchasers of gold are content to leave their metal in the custody of bullion banks like HSBC and J.P. MorganChase, forfeiting their metal to the Western central bank fractional-reserve gold banking system, where their metal is turned against them, then infinite amounts of imaginary gold, paper gold and gold derivatives, will be able to keep suppressing the gold price indefinitely.

Russia has known this since at least 2004:

China has known this since at least 2008 or 2009:

Venezuela seems to have figured it out this year:

And even Goldman Sachs, formerly a participant in the scheme, is now heavily hinting about it:

But the Western financial news media resolutely refuse to get near the issue, though GATA has handed the documentation to many of their top journalists and has patiently explained it to some of them. (At least one such journalist was courteous enough to be a little apologetic in walking away from it the other day.)

If the Western central banking system and its agents can keep creating paper gold as easily as they can create SDRs, Western financial journalism may have many more years of noting smugly, without expressing the slightest curiosity, that gold isn't keeping up with inflation. The conclusion will be a matter of the readiness of any of the Eastern powers to pull the plug on the scheme when they decide that they have adequately hedged their exposure to the currencies of the gold price-suppressing Western powers.

An excerpt from the King World News interview with Rickards is headlined "Monetary System Will Go Gold Soon" and you can find it here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.

Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:

Join GATA here:

Toronto Resource Investment Conference
Thursday-Friday, September 15-16, 2011
Sheraton Toronto Centre

The Silver Summit
Thursday-Friday, October 20-21, 2011
Davenport Hotel, Spokane, Washington

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2011
Hilton New Orelans Riverside Hotel

Support GATA by purchasing gold and silver commemorative coins:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


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: