الاثنين، 28 فبراير 2011

World Bank Chief Calls for New Gold Standard

HONG KONG (MarketWatch) –- The president of the World Bank said in a newspaper editorial Monday that the Group of 20 leading economies should consider adopting a global reserve currency based on gold as part of structural reforms to the world’s foreign-exchange regime.

World Bank President Robert Zoellick speaks at an event in Washington in October.

World Bank chief Robert Zoellick said in an article the Financial Times that leading economies should consider “employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”

Zoellick made the proposal as part of reforms to be considered at this week’s G-20 meeting in Seoul.

“Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today,” said Zoellick.

He said such a reform would reflect economic realities and should be considered as a successor to the existing global currency paradigm known as “Bretton Woods II.”
Obama and the Taliban

U.S. President Obama offers an olive branch to Afghan militants who want to lay down arms and honor the country's constitution. Video courtesy of Reuters.

Bretton Woods II refers to the system which began in 1971, when U.S. President Nixon ended the dollar’s link to gold as established under the Bretton Woods agreement.

Zoellick said a return to some sort of currency link to gold would be “practical and feasible, not radical.”

“This new system is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi that moves towards internationalization and then an open capital account,” he said

10 Reasons to Invest in Gold

Reasons to consider investing in gold.

1. Gold does not lose its value every day, like paper money. Gold is not affected by inflation or devaluation as there is a limited natural supply of the precious metal.

2. Gold is considered an investment haven. Gold has shown to performance well years of crisis or war when other investment alternatives often loss value.

3. Gold is not under political control. Governments and Central Banks can try influence prices through buying or selling of gold but that is still a free market.

4. Currently, gold reserves are limited as there is limited resources available while experiencing demand from countries such as India and China who are adding to their reserves at record levels.

5. It is an easy investment. Which is globally accepted as currencies.

6. It can be safe and profitable investment.

7. Its main use is for diversity in countries reserves. There is very little gold for sale and that accumulate as a reserve, so it is expected to increase its price.

8. Allows various forms of investment. Ingots, certificates of deposit, futures and options on gold mutual funds.

9. Gold is considered the best investment in times of crisis.

10. Do not pay VAT (Value Added Tax) on purchases (but do pay interest for paper and holding fees for physical).
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الثلاثاء، 22 فبراير 2011

Good Op Ed piece on why state's are looking at gold and silver


"Yet Washington has been curiously unresponsive to the suffering brought by its failed promise. Why? Washington has itself been a primary beneficiary of monetary depreciation. The federal government spent $15 billion from 1789 – 1900. Not $15 billion a year. $15 billion cumulatively. Uncle Sam will spend $10 billion a day in 2011. The federal government spends more every two days than it did altogether for more than America’s first century. Although these sums are not adjusted for inflation they give a correct impression of the magnitude of the change from what our Founders set forth and our early statesmen delivered."

If that $15 billion total is correct, that is mind-boggling.

The article includes a link to this interesting site:
The Constitutional Tender Act

Default Leader: Wis. Senate to convene without Democrats

Leader: Wis. Senate to convene without Democrats
REUTERS/Darren Hauck


Protesters show support at the State capitol grounds as members of the Wisconsin State Government discuss the proposed bill by Republican Governor Scott Walker. More photos »
AP

Protesters gather down State Street in Madison, Wis. after a a rally outside the Wisconsin State Capitol on Saturday, Feb. 19, 2011. A few doz AP – Protesters gather down State Street in Madison, Wis. after a a rally outside the Wisconsin State Capitol …
By RYAN J. FOLEY, Associated Press Ryan J. Foley, Associated Press – 52 mins ago

MADISON, Wis. – Wisconsin's senate majority leader says the chamber will convene to pass non-spending bills and act on appointments Tuesday even if minority Democrats remain out of state.

Republican Sen. Scott Fitzgerald told The Associated Press on Sunday that he would be reviewing which bills and appointees to schedule for action. He says senators can't wait around "twiddling their thumbs" until the Democrats return.

Fourteen Democrats fled to Illinois last week to delay action on a budget bill that would effectively eliminate collective bargaining rights for most public employees. Republicans need 20 of 33 members to have a quorum to pass any spending bill but only a simple majority of 17 for other items.

Senate Minority Leader Mark Miller says Democrats will not return until Gov. Scott Walker is ready to compromise on his labor proposal.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Gov. Scott Walker predicted Sunday that Wisconsin would lead states across the country in weakening unions that have negotiated compensation packages taxpayers can no longer afford while his opponents rallied for a sixth day in the Capitol in an attempt to avoid that fate.

Democratic lawmakers, union leaders and rank-and-file teachers and firefighters called on Walker to back off his plan to eliminate most collective bargaining rights for public employees. They argued the unions had already agreed to cuts in their health care and retirement benefits that could reduce take-home pay for many workers by about 8 percent, and it was time for the Republican governor to compromise.

In a Sunday morning interview from Madison with Fox News, Walker said he did not believe union leaders were really interested in giving up their benefits and cities, school districts and counties will need weakened unions to cut spending for years to come. With Democratic Senators still out of state to delay passage of the bill, Walker said he would not compromise and predicted that Wisconsin would pave the way for other states to follow suit, much like it did with welfare reform and school vouchers in the 1990s.

"We're willing to take this as long as it takes because in the end we're doing the right thing," Walker said.

The sweeping measure led to massive protests that started Tuesday and have gained steam including an estimated 68,000 people turned out Saturday. Most opposed the bill, but the day marked the first time that a significant contingent of Walker supporters showed up to counter-protest.

Hundreds of protesters gathered inside the Capitol on Sunday, as snow turned into freezing rain that made walking outside the building a challenge. The demonstrators banged on drums and danced in the Capitol Rotunda while they chanted, "This is what Democracy looks like" and "union busting!"

The crowd swelled throughout the day, but an estimate was not immediately available. Phil Neuenfeldt, president of the state AFL-CIO, told the crowd the protests would continue until the proposal was killed. Another large protest was expected Monday, when many state workers are being furloughed to save money.

Mariah Clark, an emergency medical technician at University of Wisconsin hospital and a volunteer firefighter, said she stands to lose $250 per month from her income with the benefits concessions. Standing on a bench holding a sign reading "EMT. Firefighter. Not the public enemy," she said the pay cut would hurt but that's not why she was protesting.

"I really believe this is about workers everywhere, not just public employees," said Clark, 29. "It's pathetic that in Wisconsin, one of the places where the labor movement started, that this would happen."

Jacob Cedillo Tootalian, a 27-year-old University of Wisconsin-Madison graduate student and teaching assistant, slept overnight in the Capitol for a third time this week as part of a union representing teaching assistants. He said he was worried about paying more for his health insurance and tuition, but what kept him protesting was the possibility of losing the union.

"Normalcy would be nice," he said. "But it seems the governor and the state Republicans are intent on taking these rights away."

The bill would require government workers to contribute more to their health care and pension costs and limit collective bargaining to pay increases less than the Consumer Price Index unless approved in a local referendum. Workers could not negotiate their benefits and working conditions. Unions could not force their workers to pay dues, and would face a vote every year to remain certified.

Walker denied the bill was an attempt at "union busting" and said the measure is needed to deal with the state's projected $3.6 billion budget shortfall for the two-year period that ends June 30, 2013.

He told Fox News he hoped the senators would return to work early this week.

Sen. Jon Erpenbach, D-Middleton, said in a telephone interview Sunday that the senators weren't likely to come back until the governor was willing to compromise.

Erpenbach said he remained at a Chicago hotel and his colleagues were "scattered" out of state. They had a conference call Saturday night, and Erpenbach said they remained united in their effort to stall the bill.

"It's trying to slow this train down," he said. "It's making sure that obviously everybody in the state knows what we're dealing with here. It's an opportunity for the governor to calm down, take a step back, realize what he's asking for with this legislation and hopefully come to his senses."

Erpenbach said Democrats have reached out to Walker's administration but their phone calls have not been returned. He said it may take a coalition of moderate Republicans in the Senate to try to negotiate an end to the stalemate.

One of them, Sen. Dale Schultz, R-Richland Center, has proposed suspending collective bargaining rights temporarily to get through the state's two-year budget, but then restoring them in 2013. That idea was endorsed Sunday by the Wisconsin State Journal, the state's second largest newspaper.

Erpenbach called Schultz brave for bucking Walker's administration with the proposal. Asked whether Democrats could accept Schultz's plan, Erpenbach said workers should not lose their rights since they have agreed to make concessions.

On Sunday, cornerback Charles Woodson, a member of the NFL Players Association, became the latest Green Bay Packer to back the public employees' cause. NFL owners and the players' union are locked in their own fight over a collective bargaining agreement. Along with Woodson, seven other current

The significance of grain size

When a sand is made up of round, evenly sized grains, as in aquifer "A" below, the aquifer stores more water than one consisting of a mixture of grains as in Aquifer "B".

When the grains are larger, the openings between the grains are larger, and the aquifer has a high permeability. When small grains get mixed up between the large grains, the spaces are clogged up, and the aquifer has less permeability

Water moving through the aquifer may not disturb the large grains, but it is likely to dislodge the small grains and carry them along with the flow.