UK treasury auction fails! - Is ours next?

The top news of the day is the fact that the UK treasury auction yesterday failed. Investors refused to buy at the artificially low rate of interest offered. This will eventually come upon us, as well. The article is well worth a read. Also note the comments on Geithner's Freudian Slip.

The economic government reports were very encouraging yesterday. All were well above forecasts. This is at least a bit suspect as last months were greatly reduced from the preliminary reports. Can it really be that these are massaged to the extent that they are useless. No, our government would never lie to the people. Perish the thought.


I am so thankful that everything and everybody are in the hands of the Creator God of all. Without this, we would dig ourselves into ever greater holes. Of course, all of our "challenges" may well be the result of His judgment upon our national apostasy. What a shame upon us. Nationally, we have turned from the God who had blessed us for so many decades. While we were to be the light to the world and salt to the earth, we have lost the light and our salt is without flavor. Thus, we deserve what we are getting.

Nothing short of national repentance will save our nation. Let us pray for national leaders who will call our nation to repentance. Perhaps, as in the case of Nineveh, the Lord would rebuild our land.

Silver is 13.58 up 0.07 today. I'm waiting to see what the boyz have in mind for both precious metals. It appears that there was some action with the NY open.
Gold, too, was hit at the NY opening. Gold is 937.80 up 4.00 now.
The big news is that the miners are holding quite strong with the metals up any at all. The miners seem to be pulling away from total dependence upon the price of the metals. Our trading stocks last trades are as follow: DROOY 9.24; HL 2.17; HMY 11.64, and VGZ 2.06. These are strong in view of the fact that the metals are not in the stratosphere, as they should be.

The following is a copy of a letter sent to me by my son. It is a practical lesson in Economics. I checked with Snopes and it is not reported there. Whether an actual letter sent to the president or not, it is a great lesson.

Mr. President:

I propose the Economics 101 question below, is this what you really want for America?

Economics Lesson 101:

An economics professor at Texas Tech said he had never failed a single student before but had, once, failed an entire class... The class insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor then said ok, we will have an experiment in this class on socialism.

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. But, as the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too; so they studied little.. The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.

The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed to their great surprise and the professor told them that socialism would ultimately fail, because the harder to succeed the greater the reward but when a government takes all the reward away; no one will try or succeed.

Sincerely,

J. Q. Delap

Would that we would learn this lesson. Without it, we will be morphed into communism and fascism. Is this what we really want for America? For your children and grandchildren? How far we have truly fallen from our founding fathers vision.

From The Telegraph:

City alarm as Treasury fails to sell Government gilts

Britain's ability to borrow tens of billions of pounds to fight the economic crisis has been called into question after the Treasury failed to sell Government gilts for the first time in more than a decade.

By Robert WInnett, Deputy Political Editor

Last Updated: 10:57AM GMT 26 Mar 2009

Fears are growing on the financial markets that Britain may not be able to repay the billions of pounds in debt it is amassing to rescue banks and revive the economy.

The Government admitted yesterday that, for the first time since 1995, investors had been unwilling to buy the full complement of its so-called gilt-edged bonds at one of its official auctions.

How soon will this happen here? That is the big question! This a harbinger of what is ahead for us. Then watch the value of the dollar go into the tank and drown. You can read the entire article HERE.

From Financial Times:

EU leader condemns US ‘road to hell’

By Tony Barber in Brussels and Edward Luce in Washington

Published: March 25 2009 20:00 | Last updated: March 26 2009 00:12

European Union hopes for a new era in relations with the US were thrown into chaos on Wednesday when the holder of the EU presidency condemned American remedies for the global recession as “the road to hell”.

Barely a week before Barack Obama is due to arrive in Europe on his first official visit as US president, Mirek Topolanek, the Czech Republic’s prime minister, put the 27-nation EU on a collision course with Washington.This is another thrust against what we have done to the dollar. The financial ministers meeting will have the topic of alternatives to the current reserve currency in place of the dollar. It is becoming more of them against us, and we deserve it as we are destroying the dollar. The article is worth a read HERE.

From MineWeb:

Gold is entering a new era, thanks to a major rehabilitation as a global financial asset--CPM

Gold appears to be enjoying a rehabilitation of its historical might and role as a financial asset, as investors look toward safe haven assets in these volatile times, says a new CPM gold report.

Author: Dorothy Kosich
Posted: Thursday , 26 Mar 2009

RENO, NV -

A report by the CPM precious metals and commodities research group in New York City asserts "gold is entering a new era," thanks to "a major rehabilitation of gold as a financial asset around the world" as investors look for safe havens in volatile times.

"Not since the Great Depression and World War II has sentiment about the state of financial and economic conditions been so pessimistic," CPM noted in its newly released Gold Yearbook 2009.

"The market consensus appears to be that the gold price will remain strong, at least through the first four months of 2009. All of the factors that have been driving investors to buy gold continue to be in place," CPM analysts said. Read it HERE.

This has been widely reported, and I selected the Daily Pfennig to give us a look at a U.S. goof: "Apparently Geithner was asked about China's call for a new international reserve currency yesterday at a NY event. He said that while he hadn't read the proposal, he understood it as a plan "designed to increase the use of the IMF's special drawing rights. And we're actually quite open to that." After hearing those words, currency traders immediately starting selling off the dollar. After all, if the Treasury Secretary of the US says the administration is open to a new international reserve currency, why do you want to hold dollars? I guess Geithner got wind of what he had done to the currency markets pretty quickly (the power of Blackberries!) and 15 minutes later he clarified his comments to say the US dollar should remain as the world's reserve currency."

His earlier goof sent the dollar reeling, but the later "clarification" gave the dollar some legs. The currency markets are very sensitive to rhetoric out of Washington. The IMF special drawing rights have been offered as a replacement for the dollar reserve status. This is a topic of discussion internationally.

Best to each, Doug