According to RBS, it appears that China is dumping the Dollar, and Dollar denominated assets. For more information on these green shoots, including great graphs, click the link below.
What is in a name?
One name that is being tossed around a lot is the name of the institute that is at the center of this "climategate." The name of this institute is the "Hadley Center for Climate Change." Now, there are many accusations with supposed proof from each side, but the simplest observation can help us to immediately understand the motive. Their name is "Hadley Center for Climate Change." This indicates that their sole existence is to prove climate change and its effects.
There are a few reasons why I would suggest this. On their website they are quite clear that they believe "Climate Change" (which is a fairly new term introduced being that the term "global warming" blew up on them, so I will use Global Warming throughout the rest of the article) does exist and has already been proven. This can be extrapolated by phrases they use such as "A simple guide looking at the facts and impacts and history of climate change" and the images they use such as a smokestack with smoke spelling out "CO2" not to mention a desolated area of the earth.
One problem that I have with this is that most of the time they spend examining data seems to be so they can prove that "global warming" is occurring. How can scientists objectively approach their research when the outcome, in their eyes, is already decided? So, naturally, data must be skewed to fit their hypothesis.
Where's my motivation?
I can't say factually what the motivation is, but these scientists are being paid and have steady work. If they disproved "global warming" then they would be out of work until the next job. Now, you can think a little deeper and consider that there is government motivation. After all, this is a government organization that clearly already believes that "global warming" is a proven fact. It seems slightly suspect that an organization of the government would declare "global warming" to be so factual with clearly inconsistent data and so many dissenters if they didn't have political motivation.
What possible political motivation can arise? Taxes, permits, new businesses, control over industry, and the sky is the limit! New companies that regulated CO2, audited CO2 emissions, and sold credits would be created. Imagine if politicians, that have a vested interest in some industries, could levy a massive tax on their competition? They would either be making money off of them or put them out of business. It would open up a whole new level of control never before seen by man.
Using basic logic, you can clearly see:
- Their name & website clearly suggest a steadfast belief that "global warming" exists.
- They get paid for an indefinite period of time assuming they don't disprove "global warming"
- There is a lot of political opportunity available if "global warming" is proven true such as large tax increases, new permits, and new business opportunities.
- The leaked emails help to contribute to this conclusion.
The name, the motivation, and the disposition all point to an organization that has a goal, and a motivation to push their idea without consideration that they may be wrong. Someone is wrong in the Climategate argument, there is no in-between. But with the current slew of information, and a basic analysis of the source of "proof" it is easy to see through the situation.
Not to say I would want his job, but if your idea to save the economy is: make money cheap so banks, and the federal government run up their credit and hope for the best, then that is not very inventive. That is basically what every low income family that has lost their job is resorting to, and it only makes problems worse. It will work similarly on the micro as it will on the macro! Now, I understand that the Time magazine award is for people who have affected the world "for better or for worse." But it sounds like they think it is for the better.
Don't get me wrong, Bernanke seems like a cool guy. I would most certainly hang out with him, but person of the year? We haven't even begun to see the effects of his decisions. This is like giving the award to a person who has the intention of going back in time. I think that in a few years we'll be able to look back on this and realize how big a farce this is. At least, I hope we'll have that ability assuming cataclysmic destruction of our economy does not ensue. Do I hope I'm wrong? OF COURSE! I hope that in a few years Bernanke can call me up laughing saying "You remember how you said I didn't deserve man of the year? I guess you were wrong."
But everything in me looks at what decisions are being made, and what the logical outcome may be, and I just think that the decisions are being arrived at for the short term outcome, and the long term is not being considered.
"The ceiling was set at $12.104 trillion dollars.
The latest posting by Treasury shows the National Debt at nearly $12.135 trillion. "
To read more about these green shoots follow this link: http://www.cbsnews.com/blogs/2009/12/16/politics/politicalhotsheet/entry5987341.shtml
"I can't say this enough:
The state has run out of money.
We are $1 billion short..."
-New York Governor Patterson
To read more about these green shoots you can find the article here: http://www.nydailynews.com/ny_local/2009/12/13/2009-12-13_untitled__2gov13m.html#ixzz0ZxgA0CtB
We have some damage control information from Forbes.com:
"Gold Coin Shortage
Heather Struck, 11.25.09, 12:15 PM EST
Don't worry, there's not a shortage of gold, just of equipment for coining it in the U.S.
The United States Mint has a gold problem. As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there's been a run on the Mint. Don't worry, there's no shortage of gold. It's just that the Mint doesn't have the resources to make it into coins due to outsourcing and budget cuts decades ago.
The problem lies in manufacturing the blanks. The blank planchets are not made at the Mint, which hasn't had the production capacity for this stage of the minting process since the budget cuts of 1981. The Reagan administration began using private companies, which process and ship the blanks to the Mint's West Point, N.Y. site for stamping and engraving. Today there are three refineries that supply planchets to the Mint: VennerBeck Stern Leach in Rhode Island, Sunshine Minting in Idaho and Goldmark in Perth, Australia
Though some have taken the shortage of gold coins to mean a shortage of gold in general, folks in the industry say it's not a worry. The Gold Bullion Coin Act, which put the coin programs in place in 1985, stipulates that the gold must be mined in the U.S. Johnson Matthey ( JMPLY.PK - news - people ), the London-based company that refines most of the gold that is mined in the U.S., says, "there is no shortage of gold" coming out of the ground these days.
The Mint's Oct. 6 announcement that it would not produce any gold "proof" coins this year is testament to its diminished capabilities. Even 5,000 proofs for the 2009 edition of the American Eagle coin series would offer a limited number to collectors that would still be a particularly rare year for the coin. When questioned by Coin World, a collectors' trade publication, about what would be the first skipped year in two decades for the American Eagle gold coin series, the Mint responded that they were just following the law, which is "to produce bullion coins in quantities sufficient to meet public demand."
The demand for gold bullion being 860% higher than it was a year ago, the Mint has found itself filling that demand with all the gold blanks that it can get its hands on. It is difficult to say how many licensed coin dealers are telling their customers they don't have what they need, but earlier this year, Ute Wartenberg Kagen, executive director of the American Numismatic Society, said she was asked by an investor how one could buy 10,000 coins (they are sold in ounce quantities and three fractional versions below that, at a price that is slightly above market value).
Gold bullion coin prices are normally nothing near the rare coin trade, in which the right coin can sell for anywhere between $50,000 and $1 million, but this year Treasury's business coin program is already selling at the explosive rates. In 1986, nearly 1.8 million ounces of gold bullion were sold. The Mint reports having sold 1.1 million ounces by the third week of November this year."
The United States Mint has suspended sales of gold and silver yet again. 2009 has seen an unprecedented demand for the 2009 Gold American Eagles and 2009 Silver American Eagles as investors have clamored to secure their assets and protect their wealth against the rising tide of inflation.
This suspension in sales is temporary as the U.S. Mint continues to produce these highly sought after coins. At APMEX, we have a very limited supply of both 2009 Gold American Eagle and 2009 Silver American Eagle coins in stock and ready to ship. Buy your gold and silver bullion coins now while they are still available in the marketplace.
Mint shortages have traditionally caused a significant increase in premium – however, at APMEX, we still have these coins available at very reasonable prices. Buy your gold and silver coins today before market conditions change more and prices are driven up from excessive demand.
The news from the U.S. Mint comes on the heels of the recent news of gold's all-time highs. It seems like every day, gold reaches a new high! Already this morning, gold reached $1,186.30 per ounce as investors continue to react to major financial news about gold.
News like this will only drive demand and prices higher, and supplies lower. Get your 2009 Gold American Eagle and 2009 Silver American Eagle coins at APMEX while we still have a supply to meet our customer's needs.
Buy your gold and silver online today at www.APMEX.com!
Director of Marketing
American Precious Metals Exchange