Excerpts courtesy of Jim Willies Hat Trick Letter..

◄$$$ GOLD MINING STOCKS ARE POISED FOR A BIG BREAKOUT MOVE UPWARD. JUST ONE MAN'S OPINION, BUT A FELLOW WITH A STRONG TRACK RECORD. $$$

Chen Lin is a golden boy in mining stock investments. He has embarked on a path that has borne 200-fold profits since December 2002, through shrewd value picks and fine market timing. He is on record as calling for gold producer shares to make a move, as they are poised for a breakout. Chen wrote, "Every gold producer is making an incredible amount of money, and the market does not appreciate that much. That is a very interesting phenomenon. One thing will happen, either gold has to come down significantly or gold shares will go up significantly. I believe it is the latter." Much appreciation to The Gold Report for the Chen Lin interview.

◄$$$ A RUSSIAN RING SEEKS INFORMATION ON GOLD. IN TIME GOLD WILL BE MORE RECOGNIZED AS THE ACHILLES HEEL OF THE ANGLO FINANCIAL GAME. SOME USGOVT DISINFORMATION HAS COME FROM THE STORY, A SIGNAL OF ITS EXTREME RISK. MY BELIEF IS THAT THE PRIMARY AND SECONDARY OBJECTS OF THE RUSSIAN PENETRATION WERE GOLD AND GOLD. $$$

Since the Dawson Creek Conference in the Yukon Territory, hosted in August 2005 with some of the world's most prestigious bankers in attendance, excluding those from the United States and England, the global perception of the Anglo gold game has been revealed. The Russian central bank at the time did an abrupt turnaround. After Dawson Creek, the Russian central bank stopped 100% of its gold leasing to the US & UK, upon realization that they had been duped and swindled. The Russians have been engaged in information gathering ever since, as espionage has entered the gold world. Gold is located at the nexus of the global monetary system vulnerability, with the USDollar as its nucleus. The developing story apparently involves various Russians, some of whom might be operating under Irish names. A trade of US agents for arrested Russian agents defused the situation, in full public spotlight.

The US-based news sources claim the Russian spies are Goldbugs who plotted to destroy the USDollar. They are more likely agents to produce a sound monetary system, fighting the US & UK bank cartel. In telling the story, the Anglo sources will attempt to paint a picture where blame for a USDollar demise is the fault of foreigners. The US$ will fail on its own merits. Past failures and bond fraud are apparently overlooked, as is IMF arm twisting. What seems obvious is that the Russian Govt comprehends that information on Gold, the USDollar and USTreasurys is of high state value. The story tells a biased account on how Russia is gearing up on a conceived plot to destroy the USDollar by instituting a new global currency backed by gold. True enough, as the fight for survival requires a solid monetary foundation, and the global system constructed atop the USDollar is in failure mode. A viable replacement is urgently needed. People who own gold or seek out insider data on gold are deemed enemies of the US state.

The spun news story alleges that the Russian spies were focused upon the CIA leadership, the Obama Admin, and activity in Afghanistan. Jim Rickards, senior director for market intelligence at Omnis, mentions how the FBI complaint cites the global gold market as one of the key objects of interest of the Russian Federation and its SVR intelligence agency. Rickards said, "On a number of occasions, the SVR specifically indicated that information collected and conveyed by the New Jersey conspirators was especially valuable. Thus, for example, during the summer and fall of 2009, Cynthia Murphy, the defendant, using contacts she had met in New York, conveyed a number of reports to [Moscow] Center about prospects for the global gold market."

The news story claims that in late 2009, the Kremlin dramatically reversed its official stance on gold and actions thereupon. Before October 2009, Russia had been on course to sell nearly 25 tonnes of gold into the market. In November 2009, however, one month after Murphy's alleged report to the SVR about gold, Russia started stockpiling the precious metal, selling nothing out of country. In November 2009, Russia's central bank bought more than $1 billion of gold from the foreign exchange market in order to better control the price of the ruble, according to central bank deputy chairman Alexey Ulyukayev. The credit crisis was in full swing. Analysts on contrary ground argue that Russia's move into gold was a manifestation of deep USDollar disappointment, and disrespect for USFed Chairman Bernanke. Anger and disgust would seem normal, to show reaction and disdain for a US$ central banker who minimizes the stated risk of currency debasement via a printing press operated at a boasted zero cost, and who expanded the US$ money supply by leaps & bounds for the benefit of Wall Street redemption of worthless bonds. Russia might have simply followed in the Chinese footsteps, which in 2005 halted all export of gold bullion products. The two Asian nations are working very closely on major energy projects, and consult freely. The Russian central bank continues to purchase gold, adding 26.6 tonnes in the most recent quarter, bringing its holdings to over 668 tonnes. That is a paltry total for any major nation. Other central banks of several countries have been avidly accumulating the precious metal, including China, Venezuela, and India. The nation of India alone purchased 200 tonnes of gold in November 2009, with IMF blessing, without any criticism of trying to wreck the USDollar regime. Any gesture made outside the Anglo War Room, the helm of control, is deemed divisive and subversive.

◄$$$ GOLD HAS BEEN ELEVATED IN IMPORTANCE AND PRESTIGE AS A CONSEQUENCE OF THE RUSSIAN SPY RING INCIDENT. GOLD CAN BRING DOWN A FINANCIAL SYSTEM. IN PAST WORK, RICKARDS OUTLINED A CURRENCY WAR SCENARIO THAT THREATENS THE USDOLLAR, WITH GOLD HOLDING THE POTENTIAL. MY GUESS IS THAT HE ANTICIPATES SUCH AN ATTACK, A CLIMAX EVENT TO THE COMPETING CURRENCY WARS. $$$

Central banks must pay as much attention to the gold market as they do their own bond markets. Gold, after all, serves as collateral to the central banks and their monetary system, based entirely on faith. Central bankers have done much to destroy that faith. They have been on a reckless course for almost twenty years in removing their gold collateral, a strong signal of bankrupt leadership in the mental chambers. Consultant Rickards wrote an important white paper entitled "Economics & Financial Attacks" which created an imaginary Pentagon war game in which Russia used its gold reserves to create a new global currency and destroy the value of the USDollar. In the May 2009 paper, Rickards suggested that US intelligence agencies would do well to track the gold reserves of other countries as a precaution. This story reports on a watershed event. Gold is a great investment in credit crisis times marred by monetary tumult. Survival is not a subversive endeavor. The risk and travesty of unchecked USDollar printing, the redemption of failed bonds, the placement of banker bonuses despite failure, and the adoption of fraudulent firms are the more relevant acute subsersive activities, all sponsored from within by the USGovt and USFed. Their mission is to preserve the power of the elite bankers, to prevent disclosure of gigantic fraud accompanied by prosecution, and to avoid asset liquidation that would bankrupt their masters. See the Information Liberation article (CLICK HERE) or the GoldSeek article by the Gold Anti-Trust Action committee (CLICK HERE) or the Alphaville article (CLICK HERE).

Rickards explains the threat, not of a collapse but extreme undermine of the USDollar via a significant devaluation. The financial attack could be rendered via gold. Russia could be the party in opposition, although much more likely the adversary would be a consortium of nations that includes Russia. Take for instance the advocates of the New Nordic Euro and those nations that support its usage in banking and commerce. He described the rough cuts to the financial attack on the USDollar. He wrote, "Worse even than the long slow grind along the bottom is a sudden catastrophic collapse. In that context, the greatest threat to US national security is the destruction of the USDollar as an international medium of exchange. By destruction we do not mean total elimination, but rather a devaluation of 50% or more versus broad based indices of purchasing power for goods, services, and commodities, and the dollar's displacement globally by a more widely accepted medium. The intention of the Central Bank of Russia would be to cause a 50% overnight devaluation of the USDollar, and to displace the USDollar as the leading global reserve currency. The expected market value of gold resulting from this exchange offer is $4000 per ounce, i.e. the market clearing price for gold as money on a one-for-one basis. Russia could begin buying gold at the market [price] (perhaps $1000 per ounce initially). However, over time its persistent buying would push gold as money to the clearing price of $4000 per ounce. However, gold selling would stop long before Russia was out of cash, as market participants came to realize that they preferred holding gold at the new higher dollar denominated level. Gold will actually be constant [relative to crude oil,] as in one ounce = 25 barrels of oil. It is the dollar that depreciates. Another important concept is the idea of setting the global price by using the marginal price. Russia does not have to buy all the gold in the world. It just has to buy the marginal ounce and credibly stand ready to buy more. At that point, all of the gold in the world will reprice automatically to the level offered by the highest bidder, i.e. Russia. Basically, the mechanism is to switch the numeraire from dollars to gold. Then things start to look different, and the dollar looks like just another repudiated currency as happened in Weimar and Zimbabwe. Russia's paper losses on its dollar securities are more than compensated for by (a) getting paid in gold for its oil, (b) the increase in the value of its gold holdings (in dollars), and (c) watching the dollar collapse worldwide." The above is a highly credible and possible scenario. Rickards paints a scenario with extreme realism, a prescient piece. See the Unrestricted Warfare Symposium website article for the original essay (CLICK HERE) and the Cafe Americain article (CLICK HERE). Regard such an attack as a climax event in the Competing Currency Wars, whereby the unjust unworthy corrupted USDollar is de-throned.