Wednesday, March 25, 2009

US Dollar Crash Test: Failed. DXY, HUI, XAU, TNR.v, RMK.v, BTT.v, GBN.v, OK.v, SBB.v, KTN.v,,, ASM.v, FVI.v

US Dollar went into a free fall crash intraday today once news hit the wires "that Treasury Secretary commented on Chinese proposal about New International Reserve Currency as worth consideration..." Bubble Vision immediately claimed the news taken out of context...
Gold spiked to over 940 on the same news: now there is no illusion left how the Market will take move out of US Dollar as a Reserve Currency of Choice.
Angry "No" from Ben And Tim yesterday once they have been grilled on the Hill are more appropriate answers for US Corp officials. Question is when the world will recognise the weakness and will make a move with or without USA? It is the last chance to make a nice face and participate in creation of World Reserve currency and slowly unwind debts in a manageable debasing of US Dollar.

Tuesday, March 24, 2009

TNR Gold TNR.v: Los Azules, Xstrata and Minera Andes stakes are rising with Copper price. TNR.v,, XTA.l

Dr Copper is trying to tell us something last couple of months, Dr Zinc is confirming his scientific observation.

Life is a journey and we like to enjoy it writing our Diary and Sharing Travel Experience. For those interested in Argentina, this winter could be hotter then usual.

TNR Gold TNR.v and its Argentina subsidiary Solitario filed lawsuits according to pages from the report above. At stake is 25% back in right on 50% of the Los Azules Northern part with a high grade core, effectively 12.5% of the total deposit.

To make things interesting throw into the picture legendary Robert McEwen with his latest investment of 40 million in Minera Andes after corporate fight for the company, power broker Lukas Lundin with his stake in and Xstrata which will have to make a decision of 51% back in within 90 days from legal notice from Minera Andes after publishing this report.

Stakes are rising literally with rising Copper prices: project is highly leveraged to Copper price:

"Project is very capital intensive at 2.7 bln USD and highly leveraged to Copper prices: with increase of 11% in Copper long term price at 2.1 USD per lb NPV is rising 100% to 1 bln USD."

Canada Zinc Metals CZX.v: What Chinese know the others don't? CZX.v,,

Two things are pointing to their thinking:

There is some life outside the US Misery:
Tata Motors (TML) has announced the commercial launch of the Nano keenly awaited across India since it’s unveiling on 10 January 2008.

Surprise, surprise:
Inflation surprises and jumps to 3.2%
"UK inflation defied expectations to rise in February for the first time in five months, triggering another exchange of letters between Mervyn King, governor of the Bank of England, and Alistair Darling, chancellor.
Inflation as measured by the consumer price index rose to 3.2 per cent in the year to last month, up from 3 per cent in January, and still more than 1 percentage point above the Bank’s target rate"
Talking about Canada Zinc Metals CZX.v - Tongling has received Local government approval of investment into company. Things in Beijiging should be moving swiftly as from 1.05.2009 this kind of investments below 100 mil USD will be in a local government prerogative. Company still trades at level 0.2CAD and Chinese are buying 13% at 0.425CAD, Mr Market and they must be reading different newspapers.
Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement
23, 2009
Vancouver, British Columbia, Canada – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce that, further to its news release dated January 26, 2009, it has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. (“Tongling”) that the State-Owned Assets Supervision and Administration Commission of Anhui, China, has approved Tongling’s application to invest in Canada Zinc Metals. Tongling will now apply for final approval from the Development and Reform Commission.
Canada Zinc Metals has entered into a financing arrangement with Tongling pursuant to which Tongling will purchase units equal to a 13% equity position in Canada Zinc Metals. Tongling has subscribed, by way of a non-brokered private placement, for 11,500,000 units of Canada Zinc Metals at a price of $0.425 per unit for gross proceeds of $4,887,500. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant shall entitle the purchaser to purchase, at any time within 24 months from closing, one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year.
“We are pleased to be acquiring this initial stake in Canada Zinc Metals,” said Mr. Li Dongqing, Chief Engineering Officer of Tongling. “Along with the Akie property, the significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity. We look forward to continuing to build our relationship with the Company.”
Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling’s principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals.
The financing is subject to receiving the necessary approvals of the relevant Chinese regulatory departments and the TSX Venture Exchange.
About Canada Zinc Metals Corp.
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
About the Akie Property
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company has filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade). The complete NI 43-101 technical report, titled “Geology, Diamond Drilling and Preliminary Resource Estimation, Akie Zinc-Lead-Silver Property, Northeast British Columbia, Canada” and dated May 30, 2008, can be viewed on SEDAR.
Two similar deposits, Cirque and South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

US Dollar Collapse, Inflation monitor, Casino is Broken. DXY, HUI, XAU, TNR.v, ASM.v, RMK.v, SBB.v, OK.v, BTT.v, GBN.v, KTN.v, FVI.v,,,

Wall Street has happen to be run even worse then Casino, it has not only bankrupted its customers addicted to easy money, but it has bankrupted the House. This is Long Term Monthly chart of US Dollar to put recent Rally into perspective: it is a Bear market sharp counter trend correction with Lower High formed now.
This is a Double Top Bearish Reversal on US Dollar weekly chart.

Our recent Crash Alert is signaling the tectonic shift in intrinsic value of US Dollar. More and more voices are rising about New Reserve Currency as the main agenda of coming G20 meeting in London. First in Davos Putin openly spoke about it, everybody pretends not listening. Then Chinese Premier talked about it privately in Europe on Tour.

Now we have a few developments and world better listen, this Open Letter Europe 2020 is published today in FT as advertisement:

London G20 Summit: Last chance before global geopolitical dislocation Open letter to the G20 leaders

"...1. The key to solving the crisis lies in creating a new international reserve currency!
The first recommendation is a very simple idea: reform the international monetary system inherited post-WWII and create a new international reserve currency.The US Dollar and economy are no longer capable of supporting the current global economic, financial and monetary order. As long as this strategic problem is not directly addressed and solved, the crisis will grow. Indeed it is at the heart of the crises of derivative financial products, banks, energy prices ... and of their consequences in terms of mass unemployment and collapsing living standards. It is therefore of vital importance that this issue should be the main subject of London's G20 summit, and that the first steps towards a solution are initiated..."

At G20, Kremlin to Pitch New Currency

"The Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system..."

Nobody cares? Wait a moment one...very important voice:

"China calls for the creation of a new currency to eventually replace the dollar as the world's standard, reflecting a growing unhappiness with the U.S. role in the world economy.
The Wall Street Journal.
With recent announcement of 1 Trillion for Credit Recovery of Assets with Problems (you can make the abbreviation by yourself) from the insolvent financial system USA officially became the largest unregulated Hedge Fund and everybody else seems to be fed up by now.
Idea is to move the reserve currency from US Corp Hedge Fund management under International System and base it on a basket of currencies including Euro, Yen, Pound and Yuan among other ideas.
What does it mean to US Dollar: charts are telling you about the picture better the thousand words as usual, just a few comments:
Another very important fact is that US Dollar dominates the world trade: Oil priced in dollars, commodities are priced in dollars and goods from China are priced in dollars due to US Corp being largest economy in the world and driven, before this recession, by two thirds by consumers.
If New Global Currency to be introduced and US Dollar share in the basket will be just 30%, Green Fellow overnight will lose its Imperial clothes and will have to stand for itself: for means of preserving wealth and for medium of trade. How it will succeed with Deficit of projected 9.3 Trillion over the coming 10 years, we are not sure.

Sunday, March 22, 2009

Lithium: The question is not whether the world can cope with three billion cars—but how. TNR.v, SQM, WLC.v, CLQ.v, GM, F, FXI, TMT, GOOG, AAPL, RIMM,

Three major things need to be established to make Lithium the Next Big Thing:
1. Battery technology which will allow fast recharging with high density based on a safe Li-on elements. Range over 200km will be a bifurcation point of quality to quantity of wide penetration in the market. (It is happening)
2. Emerging markets LeapFrog transition to the new standard of Green Energy, Sustainability and Mobility. It is a question of Energy Security and economic viability: fleet of small safe family cars with full range of normal functionality will drive this market. Production base - Emerging Markets. (It is visible with Tata move)
3. Security and availability of Lithium supply to meet explosive demand with first two happening now. (This where we would like to be, but not in Bolivia)
Few other very important considerations:
1. There are some estimations that off peak electricity supply in USA enough to power 10% of car fleet in today's figures.
2. Nuclear power will be an answer to rising electric power demand (some further ideas: Uranium will be back at one point, Copper and Zinc for Power infrastructure).
3. Demographic shift in the West. We do not expect that Western economy will be able to flourish in the next few years, but some sectors will be better then others. Baby boomers will provide demand for smaller, clean electric cars with modest range and Low running cost. Incentives of cheap "fuel" ( 25 cents per equivalent of petrol), reduced or abolished taxes and free parking will drive demand of Downsizing generation.

...But if that yearning is to be satisfied without destroying the planet, the cars themselves will have to change a great deal. Mr Ghosn of Renault-Nissan reckons that the industry has to develop vehicles with very low or zero emissions as quickly as resources and technology will allow. It is widely believed that the market for such cars for the foreseeable future will be confined to rich countries with well-organised environmental lobbies and politicians who want to establish green credentials—and indeed much of the pressure on the carmakers to reduce carbon emissions is coming from legislators in Europe and California. But two powerful forces are at work to ensure that emerging markets will get the new clean technologies sooner rather than later.
The first is the global nature of the car industry and its need for scale. Cars made by the big foreign-brand car firms in the BRICs are often tweaked for those markets, but they are no longer discontinued cast-offs from Europe, Japan, South Korea and America. Even those low-cost Renault Logans usually come with airbags, anti-lock brakes and air-conditioning because customers want them and because they are fairly cheap to provide. The well-equipped Hyundai i10s being made in Chennai for Indians differ only very slightly from those destined for export.
The second is that emerging markets often leapfrog old technologies. Many parts of the world that never got round to building a traditional fixed-line telecoms infrastructure now have mobile networks offering widespread coverage and high-speed data transmission; and places that never had analogue television now enjoy multichannel digital satellite television.
Even though the internal combustion engine still has a lot of life left in it, the big carmakers around the world now broadly agree that the move away from mineral energy is unstoppable. Having long derided the hybrid Toyota Prius for its complexity and expense, just about every manufacturer is now planning to launch vehicles with hybrid powertrains within the next few years, taking advantage of rapidly improving battery technology. In particular, car companies think that the lightweight, fast-charging lithium-ion batteries used to power laptop computers and mobile phones are now robust enough to be fitted to road vehicles too.
One of the first of the next-generation hybrids will be Chevrolet’s Volt, which is propelled by an electric motor that can be recharged from the mains. The Volt also has a small petrol engine that acts as a generator to extend the car’s range. Such cars are now seen as essential to the industry’s future; indeed for GM itself the Volt could prove to be a lifesaver. At first they will be more expensive than their conventional equivalents, but as production rises, helped along by favourable tax treatment, their price will quickly fall.

Electrifying prospects
Mr Ghosn thinks that the hybrids themselves may be only a bridging technology on the way to cars powered by batteries alone. His Renault-Nissan alliance, in partnership with NEC, an electronics giant, is pushing ahead with plans to launch all-electric vehicles that look and feel like conventional cars by 2010. Only fully electric cars, Mr Ghosn reckons, will allow the expected growth in car ownership without disastrous consequences for the planet. Governments of developing countries have every interest in combating air pollution and substituting locally generated electric power for expensive imported oil. Alex Molinaroli of Johnson Controls, a big car-parts firm that specialises in battery technology, thinks that electric vehicles might be introduced on a large scale in China ahead of western Europe and America. He says China is well placed to introduce a new electric-car infrastructure partly because it still has relatively few petrol stations. “They don’t have a legacy cost chasing them around,” he explains.
Emerging-market manufacturers are also getting to work on the new cars. In September Tata Motors announced plans to launch an electric version of the Indica in Norway (where Tata has a technology partner) next year before bringing it back to India. In China DongFeng will start making a hybrid car under its own brand next year. Another Chinese carmaker, BYD, a subsidiary of one of the world’s biggest battery manufacturers, has developed a battery technology of its own that it claims has significant advantages over both lithium-ion and nickel-metal hydride (the type of battery used in the current Prius). It says its ferrous batteries are not only much cheaper but can also be recharged to 50% of their capacity within ten minutes. The world’s canniest investor, Warren Buffett, recognises the technology’s potential: his Berkshire Hathaway group has taken a 10% stake in BYD.

US Dollar collapse: Inflation watch, Budget Deficit. DXY, HUI, XAU, TNR.v, RMK.v, SBB.v, OK.v, MGN, GBN.v,, BTT.v, ASM.v,

This is US Dollar Long Term Monthly chart. In the big picture scale this levitation Rally and Flight to "Safety" of US Treasuries is a Bear market sharp reaction rally. We have shown before that US Dollar now in a Double Top reversal weekly, Recent High is a Lower high, we will slide from here to retest 72 level. Fundamentals are stunning to say at least with trillions of debt, budget deficit and other obligations, lets examine the current situation with Budget Deficit, Debt and Currency.
Budget deficit, Debt and Currency value explained in English.

US Corp has became the largest unregulated Hedge Fund with Ponzy Scheme of Social Security services. The chart above indicates that World and Investors of US Corp are paying attention: cost of Long Term Debt - 30 year Yield is Rising.

The U.S. could be in the hole $2.3 trillion more than expected--and that's if the economy performs well.

"WASHINGTON, D.C.--As President Obama prepares to send his budget to Congress next week, he's run into a bit of a stumbling block. The Congressional Budget Office said Friday that the national debt under the president's budget will be $2.3 trillion deeper than the White House estimates.
Now for the real bad news: Both estimates are optimistic. If the economy continues to deteriorate faster than economists project, those numbers will balloon further.
Over the next decade, the CBO projects that the White House budget will run $9.3 trillion in deficits. The White House projection had been $7 trillion. The problem for Obama, as his budget moves to Congress: Lawmakers tend to trust CBO figures over all others. "CBO's word is the gospel," Sen. Chuck Grassley, R-Iowa, the ranking member of the Senate Budget Committee, said in a statement."

Currency is a common stock of US Corp. - its strength based on strong fiscal discipline (profit), Tax revenues (Sales) and perceived market value. In order to finance Budget deficit US Corp is issuing new Debt, aside from main business (serve and protect its citizens for their tax payments) it is running a hedge Fund by buying Assets nobody wants otherwise and now it is printing new shares and calling it Quantitative Easing, will you buy the stock of this Company? Today we would like to explore one more time the Debt side of things:

Lets check Budget Deficit, Debt and Social services Financing - How much will it cost to service all that debt?

"In Fiscal Year 2008, the U. S. Government spent $412 Billion of your money on interest payments* to the holders of the National Debt. Compare that to NASA at $15 Billion, Education at $61 Billion, and Department of Transportation at $56 Billion. -- As of 28 February 2009, the total interest spent so far this fiscal year is $148 Billion."

Do not count on Quantitative Easing to bring rates down and keep it there, Long Term TYX yield is rising already, who in their mind will buy 30 year IOU when the Issuer is declaring we will put more of this staff on the market and debase - dilute the stock - currency? US Corp will be caught between scissors of diminishing revenues due to recession and rising outflows to service its Debt with rising real rates.

Gold, Silver, Grains and Oil have pronounced Inflation last week after FED action and move to QE. We are stunned with Budget Deficit this year at 2 Trillion (now official figure is 1.85 Trillion), but wait until rates will double due to Inflation and Only Debt Service payments could reach 1 Trillion dollars before any "Operational Cash flow Budget Deficit".

Friday, March 20, 2009

Lithium: Peak Oil, Obama, Electric Cars and Mobility. OIL, OIH, TNR.v, GOOG, WLC.v, CLQ.v, SQM, GM, F, TMT, AAPL, RIMM, GDX, FCX

If you were busy watching the crash in US Dollar this week and were trying to comprehend meaning of Quantitative Easing, we have another news for you: there is no cheap oil left and will never be. Gold, Silver, Copper and Oil has shown us direction of trend this week with debasing of US Dollar. Oil became a matter of strategic reserves and will be priced prohibitive for any amusement purposes like driving an SUV and paying less then 2 USD per gallon. If you are still in doubt buy a ticket and go to Europe or even better to England: you will be able to question people in almost native language why they are not on a barricades yet with petrol prices at 1.3 USD per liter?

Have a glance on the chart, while all Wall Street and paid Talking Heads on Bubble Vision are convincing you that normal "Wall Street professional" can not even wake up in the morning for less then 1 mil per year, somebody is buying Oil. 75 mark is not as far as you would think in the future and when Oil gets be there things will get hot again.

Lithium could become a hot commodity which will preserve the right for mobility in the future. You can hardly fight the war with heavy armored vehicles on Lithium-ion batteries or assure Chinese that your IOU are perfectly fine for them to keep with couple of inflatables. You need tanks, fighters and battle ships - you need Oil.

In order to understand the future we should look at Japan: they do not have any Oil already and are importing the precious staff. Technology and economy are advanced, as well as population culture, in order to understand that they will not survive as a nation with housewives driving kids with Oil at 150 dollars per barrel.

"The nation that leads on energy will be the nation that leads the world in the 21st century. That’s why, around the world, nations are racing to lead in these industries of the future. Germany is leading the world in solar power. Spain generates almost 30 percent of its power by harnessing the wind, while we manage less than one percent. And Japan is producing the batteries that currently power American hybrid car"
In our hungry and entertaining quest for the land spot where Ben's helicopters will unload all those Trillions, we have a strong feeling that a new trend in solid things and Hard Assets is emerging. We are not so close connected to get taxpayers money or any smart to make a better bet on a particular start up as John Doerr, so our pasture as usual: rocks, mud and precious staff in it. We will be happy to dig it out once necessary and price will make us wake up in the morning.
If Tim and Ben are so generous with money we are happy to share too:

Newmont Mining Denies Interest in Merger With Barrick Gold. ABX, NEM, TNR.v,,,, RMK.v, GBN.v, BTT.v

Very good, there is no smoke without fire in these days, announcement by Monday? Consolidation is the only way to survive now and then welcome to our Juniors sitting on the Gold in the ground.

Roxmark Mines RMK.v: Premier Hardrock Drilling Returns best gold intersection to-date and defines strong gold mineralization at tenacity target.

This is what we like to see in Juniors, leveraged play when J/V partner is not sleeping on the property but very aggressively moving it forward. Premier Gold with 4 drills on the property is making story moving fast. With Gold surpassing 1000 USD/oz fireworks will be back into Junior camp. Canada, past production and potential for large scale open pit is the main story here, now it is spiced by High Grade intersection which could indicate high grade core to improve economics.
THUNDER BAY, ON, March 20 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ispleased to announce that ongoing drilling at the Hardrock Project inGeraldton, Northwestern Ontario: 1) has intersected the most significantmineralization to date in the EP-Zone target; 2) has defined a robustgold-bearing zone at the Tenacity target; and 3) demonstrates high-grade goldpotential in the Oreo Zone. This drilling continues to identify significantnear surface (open pit-style) mineralization contained within multiple zonesand continues to confirm high-grade potential proximal to existing mineworkings. Recent highlights include: << - EP-Zone mineralization has been intersected over a minimum strike length of 350 metres (m) with new intersections of up to 2.37 grams per tonne gold (g/t Au) across 62.7m. - Tenacity mineralization (open pit and underground target) has returned near surface intersections of up to 4.13 g/t Au across 18.9 m with higher grade mineralization of up to 7.79 g/t Au across 5.5 m. - Oreo drilling proximal to the historic North Zone mine workings continues to intersect high-grade gold mineralization with intersections up to 8.25 g/t Au across 2.0 m. >> Follow-up drilling, as well as testing of new targets, is on-going. "The consistency of drill results to date is remarkable and confirmsmanagement's confidence that this project will develop into a significant goldresource", stated Ewan Downie, President of Premier, "as gold mineralizationhas been intersected in every target tested." EP-ZONE ------- The EP-Zone is comprised of near-surface mineralization proximal to thehistoric North Zone mine workings. Drilling has identified multiple sub-zoneswithin the EP target consisting of the South Limb (SL) and North Limb (NL).Significant mineralization has been intersected over a strike length of 350metres and remains open in all directions. The following tables demonstrate the potential of the EP-Zone,highlighting mineralization within each horizon. These results demonstratecontinuity and grade within the EP-Zone, supporting management's belief thathistoric and new results will be utilized in a NI43-101 compliant resourcecalculation which is expected to be completed in Q4 2009.
The current program at Hardrock is expected to consist of more than50,000 metres of definition and exploration drilling. The Project is operatedunder a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earninga 70% interest). The Hardrock Project is host to several past-producing mineswhich collectively produced more than 2.0 Million ounces of gold from the samedeposits to relatively shallow depths of approximately 2000 feet (600 metres)from 1938-1968. The mined zones remained open at depth at the time miningceased and developed historical resources were left in place within theexisting mine workings (a qualified person has not done sufficient work toverify the historical resource, the company is not treating the historicalresource as a current resource and the historical resource should not berelied upon). Importantly, the Hardrock Project has the potential fordefining several styles of mineralization capable of hosting resources, withgrades and widths similar to many of Ontario's major gold mines including: <<> 2) Broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite) 3) Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake) >> Initial drilling with four drills is focusing on delineating both openpit and underground resources with the goal of defining a multi-million ouncegold resource that can be moved quickly towards development (See references tohistorical resources above.). The Project offers development advantages withthe Trans-Canada Highway, Trans-Canada Pipeline, and major power lines runningthrough the center of the property. Significant potential exists fordeveloping resources in several areas including: 1) Open pit-stylemineralization at the site of the original discovery where a resourcecontaining several hundred thousand ounces of gold was partially drilled offby previous operators; 2) Several newer high-grade discoveries have been madethroughout this large property package that have received little to nofollow-up; 3) Resource blocks reported to remain within the mine workings;and, 4) The main mined zones which remain open below the 600m Level.

Thursday, March 19, 2009

Lukas Lundin's Suramina Resources Signs Letter of Intent With Jogmec Over Jose Maria Copper/Gold Project in Argentina.,, TNR.v

Suramina Resources is a spin off of South American properties from Tenke Mining and is in a process of merger with another Lukas Lundin Exploration play Canada Gold Hunters TNR Gold TNR.v has a number of properties J/V with Suramina, one of them is adjucent to Jose Maria and you can see all properties on the Map in NR on this link:

Looks like Lukas and JOGMEC are encouraged by moving Gold and recovering g Copper prices and JOGMEC is consolidating its area plays: one milling facility could be economically viable with all these recent bulk tonnage low grade discoveries. Will TNR's Batidero receive any interest with this move?

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2009) - Suramina Resources Inc. ("Suramina" or the "Company") (TSX:SAX - News) is pleased to announce that it has signed a letter of intent with Japan Oil, Gas and Metals National Corporation ("JOGMEC") to form a Joint Exploration Agreement ("JEA") over the Company's Jose Maria project. Please see attached map:**http%3A//
The Jose Maria JEA provides for JOGMEC to acquire 40% of Suramina's interest in the project. In consideration, JOGMEC will expend a total of US $7 million in exploration expenditures over a period of three years which includes a US $1 million contribution to support past Suramina Jose Maria exploration investments. Upon JOGMEC earn-in being reached, the partners will fund ongoing expenditures on Jose Maria pro-rata to their ownership interest.
Jose Maria is a large copper/gold porphyry project near the Vicuna group of properties in the high Andes with the deposit located just east of the Chilean border in San Juan Province, Argentina. A portion of the Company's properties in this region straddling the Chilean/Argentine border are already under a joint exploration agreement with JOGMEC, whereby Suramina as Operator has a 60% interest and JOGMEC holds 40% of the original interest held by Suramina. Drilling is currently in progress at the nearby Los Helados and Cerro Blanco copper/gold porphyry projects directly across the border in Chile as part of this season's multi-target exploration program being jointly funded by the JOGMEC/Suramina partnership.
Jose Maria is one of the Company's more advanced projects with a NI 43-101 inferred resource of 460Mt @ 0.39% Cu and 0.30g/t Au at a 0.3% TCu cut-off (please see news release dated December 5, 2007 for complete details). The last phase of drilling at Jose Maria indicates that the deposit remains open to the northwest and at depth. Over 21,600 meters of primarily reverse circulation drilling have been conducted to date with each successive drill campaign adding significantly to the resource base. Next phases of Jose Maria exploration will focus on advanced geophysics and core drilling in pursuit of better defining high grade gold and copper zones as well as extending the resource size to the maximum extent.
Signing of the Jose Maria JEA follows a successful multi-year partnership that the Company has maintained with JOGMEC. This partnership has resulted in successful drill programs on several porphyry targets in the Vicuna property package, including drilling which led to the discovery of a new copper-gold porphyry deposit at Los Helados in Chile. Suramina's exploration programs are carried out under the direction and management of J. Patricio Jones (PhD). Dr. Jones and his team discovered the Veladero gold deposit in Argentina, were responsible for the initial development of the Bajo de Alumbrera copper-gold project and subsequently have led the discovery of the Jose Maria, Filo del Sol, Los Helados and Cerro Blanco copper/gold porphyries all in the Vicuna area. The technical contents of this release have been reviewed and verified by Mr. Paul K. Conibear, P.Eng., Director of Suramina Resources Inc., who is an appropriately qualified person as defined by National Instrument 43-101.
Lukas Lundin, Chairman

US Dollar Collapse: Dollar fell out of bed - somebody has explained to the green fellow QE. DXY, HUI, XAU, GDL, SLV, TNR.v, RMK.v, SBB.v, MGN, SLW,

This is the crash we were talking about, all levels are broken and Double Top Reversal is confirmed. US dollar is in a waterfall mode. Now the problem will be to keep its slide orderly into the downtrend line. Green fellow was panicking last couple of days, somebody must have told him news from China

and meaning of Quantitative Easing:

Tim and Ben be careful with your noses!

How to invest in Lithium leveraged plays, Electric cars and Green Obama Energy. Updated TNR.v, RM.v, LIT, LIT.v, LI.v, SQM, WLC.v, CLQ.v, GM, F, TMT, GOOG, AAPL, OIL, OIH, CS

With Obama scheduled to visit electric car plant, we need to be up to speed with our investment ideas in Lithium - place is getting attention and bargains will be gone soon.

LOS ANGELES, CA - MARCH 19:  President Barack ...Image by Getty Images via @daylife"President Obama begins his two-day visit today to the Southland, where he plans to hold two town hall meetings, tour an electric-vehicle plant and appear on the "Tonight Show with Jay Leno."

In our continued quest for the next Tenke Mining we would like to share with thinking universe few research ideas. We will not cover things which are already on the radar screens like SQM and coming from auto and battery Lithium-ion technology angles. We will continue our approach of technology play from material side needed for this advance.

First of all we will refer you to our Lithium: Dragon CS secret of trade.

Then we suggest you to study Lithium. And if here our respectable guest will lose focus, patience and leave us we will be only happy.

Our investment approach requires patience, devotion and home work. The better student you are, the better chances of your success. This blog is only our diary reflecting our ideas and their on-line development. Few were spot on the money, but read, as always, fine print and our legal disclaimer.

"Given the rapid penetration of high-powered portable devices, efficient hybrid motor vehicles, and the increasing prominence of lithium ion batteries as green energy alternatives in our daily lives, lithium is emerging as the highly sought-after commodity of the 21st century." President Gary Schellenberg adds, "We are pleased to add these properties in order to diversify the TNR portfolio as it aligns with our philosophy to be at the forefront of developing resources for the incoming demand of sustainable energy solutions. These acquisitions are the first of many progressive steps in establishing ourselves as a prominent Lithium and REE explorer."

This is from yesterday NR of TNR Gold TNR.v. We put it first because we are holding a substantial position, following the company and like what we see recently.

You can find our coverage of TNR Gold TNR.v here in order to get a full picture with all ups and downs. We do not encourage you to Buy or Sell this stock as always in any way. All material is for education purpose only. We are blessed to keep our head above the water and still making money with our ideas, this blog will become a book at one stage and basis for PhD for couple of guys - you are always welcome to follow our research.

There are just few Junior Lithium plays now. Few of them are covered with good investigation and sense of humour here. What is the difference? Both Western Lithium WLC.v and Canada Lithium LCQ.v are already established lithium plays with market valuation for known Lithium resources. WLC.v benefits from solid cash position, CLQ.v is very low on cash, both companies have some issues which should be investigated further.

The difference with newcomer into the field TNR Gold is that company in our opinion is still below value of all its other properties and only now market started to recognise some value in it. TNR.v will need to finance itself to keep running as well, but announced in corporate update strategy of J/V of its properties will keep hopefully dilution to minimum of running G&A costs shifting major expenses of advancing properties to its partners.

From this idea we know what to watch further:

1. Company has survived the crisis, management has got vote of confidence from insiders and received financing early this year.

2. Management has delivered new promising properties in an upcoming commodity sector: Lithium, Geopolitical risk has dramatically shifted as well with addition of two Lithium projects in Ontario, Canada.

3. Keep in mind that its Lithium properties are without any known resources, but with historical exploration programmes and historical grade indication is in line with producing mines. It is effectively call without time decay on Lithium resource discovery and confirmation according to 43-101.

4. Management is talking about "first of many steps" - this is interesting to see in dynamic.

5. Do not count on any of the above and watch the price action. It is a very strange situation: company is under 10 mil cap, but among its assets apart from recently acquired Lithium projects are:

A. Los Azules North half of the deposit 25% back in right in dispute with Xstrata about its 36 months restriction. Escorpio IV property adjacent to Los Azules, TNR Gold initiated a law suit to confirm its back in right without any restrictions and its ownership title for Escorpio IV.

B. El Salto: The company successfully completed a 12-hole drill program totaling 6446.45 metres. Seven drill holes in the northwestern portion of the property intersected significantly anomalous copper and molybdenum mineralization over relatively large widths including 55.35 metres of 0.205% copper and 0.012% molybdenum. These results suggest the existence of a large porphyry system with copper-molybdenum mineralization.El Salto is workable year round due to its favorable elevation of 1,600 metres, proximity to the town of Calingastas, and has access to water source (nearby river) as well as power. TNR owns 100% of El Salto's 3,300 hectares in the province of San Juan, one of the most mining friendly areas in Argentina. The area is famous for the "Yellow Belt" porphyry copper molybdenum system.

C. El Tapau: A 1958.70 metre 7-hole drill program tested 3 distinct geological targets. The company is very encouraged by these results from its first reconnaissance drill program. It has extended the prospective copper-gold breccia zone to over a 4.5-kilometre strike length with the intersection of 82.25 metres of 0.49% copper located approximately 4.5km away from the past producing San Francisco mine. In addition all four holes targeted in the gold zone intersected precious-metal-bearing structures similar to those sampled on surface including an intersection of 0.75 metre of 9.15 gram/tonne Au.

D. Alaska properties: Following our tradition of identifying early projects, TNR is pleased to announce that on September 17, 2008 BHP Billiton transferred its ownership in the Iliamna project to TNR. Iliamna is an early stage property that is situated less than 100 kilometers from Northern Dynasty and Anglo-Gold's Pebble deposit. A $75,000 geochemical sampling program has been completed and all data has been received with results from the program to be released shortly.During 2008 TNR incorporated Bristol Exploration Co. Inc. ("Bristol") in the State of Alaska to hold 100% of its Alaskan properties. This restructuring will give TNR more flexibility in advancing these assets.

Any progress will be subject to J/V announcement, new Lithium dynamic and financing at the reasonable level.

Another reason to please our contrarian soul in this business case is that nobody loves Juniors any more particularly in exploration space, it reminds us our situation with Tenke Mining at 0.6CAD in 2003, situation was different, but so close: huge confirmed reserves of Copper and Cobalt in Congo and total lack of confidence in the country.

Now we have totally scared investors, Majors are in Debts to the eye balls and are selling properties, shelving deposits and closing mines. According to Sir Warren Buffet - time is to buy the precious staff and help is on the way: Ben and Tim who must be devoted readers of this blog are trashing the dollar as there is no tomorrow according to our suggestion and after our Crash Alert.

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Volta Resources undertakes extensive auger drilling program to test potential between the Dienemera and Gongondy deposits at the Gaoua project.

Once all those freshly printed money hit the system, God forgotten African plays will be coming back with risk coming back into play, time is to accumulate relatively safe places., SNU.v, for the homework.
TORONTO, March 18 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX:VTR - News) is pleased to announce that an extensive auger drilling campaign is underway to test the potential between the Dienemera and Gongondy deposits at Volta's Gaoua copper-gold porphyry project in southern Burkina Faso, West Africa.
On February 5, 2009, the Company announced an independent NI 43-101 compliant inferred resource estimate for the Gongondy and Dienemera deposits on the Gaoua copper-gold porphyry project based on 26,661 metres of diamond drilling in 92 holes and 1,305 metres in 15 reverse circulation ("RC") holes (See Volta press release dated February 5 2009). The NI 43-101 Technical Report will be filed on SEDAR on, or before, March 22 2009.
At a 0.45% copper equivalent cut-off grade, the Dienemera and Gongondy deposits host an initial Inferred Resource of 82,600,000 tonnes grading 0.40% copper and 0.40 g/t gold for a total of 724,880,000 lbs of copper and 1,072,900 ounces of gold. The individual resource estimate for each deposit is provided in the table below. Copper Equivalent (CuEQ) has been calculated from assumed revenues of USD 3,000 per tonne of copper and USD 700 per ounce of gold with metallurgical recovery assumed to be 85% and 70% respectively based on initial QEMSCAN results. Gold grade has been multiplied by 0.6 and added to the copper grade to provide CuEQ grade. The cut off grade further assumes typical costs of USD 2 per tonne for mining and USD 10 per tonne for processing and general administration costs.

US Dollar collapse, Inflation watch: Dollar has slided below 84 in a Waterfall mode. DXY, GDX, HUI, XAU, RMK.v, TNR.v, BTT.v, GBN.v, OK.v, MGN, SLW,

Inflation is here and Gold with Oil will bring nonbelievers to realise it very quickly. General Bernanke has employed his heavy artillery and US Dollar is retreating in panic. Levitation is over and grim reality will come back into the fundamental picture.

Federal Reserve plan stuns investors
By Krishna Guha in Washington
Published: March 18 2009 18:17 Last updated: March 18 2009 23:40
The Federal Reserve on Wednesday stunned investors by announcing plans to buy $300bn of US government debt, triggering a plunge in bond yields and the dollar.
In a further display of aggression, the US central bank also said it was more than doubling its purchases of securities issued by housing giants Fannie Mae and Freddie Mac to $1,450bn. It said it now expected to keep interest rates near zero for an “extended period” of time.
The yield on 10-year US Treasuries plummeted 50 basis points to 2.50 per cent, while private borrowing rates fell by roughly half as much. Equities bounced with big gains in troubled banks such as Citigroup and Bank of America. But the dollar fell 3.2 per cent against the euro and 2.3 per cent against the yen.
Interactive feature

Quantitative easing explained

Goldman Sachs said the Fed was throwing the “kitchen sink” at the problem. The plan to buy Treasuries caught investors off guard. “It appears that they wanted to give the market a jolt,” said Peter Hooper, an economist at Deutsche Bank.
The last time the central bank attempted to bring down yields on long-term securities through direct intervention came during the ill-fated Operation Twist in the 1960s. Recent comments by Ben Bernanke, Federal Reserve chairman, and William Dudley, New York Fed president, did not suggest that Treasury purchases were imminent.
But the deterioration in the US outlook, problems rolling out the US financial rescue plan and the Bank of England’s success in buying UK government gilts seem to have persuaded the Fed to act.
Alan Ruskin, a strategist at RBS, said it was a “flip-flop” that “could be cast as a sign of desperation” but “confirmed that Bernanke will do whatever it takes to get some hold of the problem”.
The Fed said it would concentrate on Treasuries with maturities of two to 10 years. It said its objective was to “improve conditions in private credit markets” – not to help the government finance its mounting deficits. The Bank of Japan said it was stepping up its purchases of Japanese government debt by about a third to Y1,800bn a month.
Wednesday’s Fed announcement will increase the size of its balance sheet by another $1,150bn to about $3,000bn even before the roll-out of a $1,000bn scheme to finance credit markets. Once this scheme is fully implemented, its balance sheet could approach $4,000bn – nearly a third the size of the US economy.
A swollen Fed balance sheet runs the risk that the US central bank may find it difficult to manage down the money supply when the economy turns, raising the possibility of inflation.
Gold surged in response to the Fed’s announcement, rocketing from a session low of $884.10 a troy ounce to a high of $942.90, a jump of 6.6 per cent.
Additional reporting by Michael Mackenzie, Kiran Stacey and Anuj Gangahar in New York

TNR Gold TNR.v: Alaska is heating up. US$59 Million Work Program to Prepare Pebble Project for Permitting. TNR.v,,, HUI, XAU, GDX

It is very important to see money flowing into Alaska now with Gold close to the Important Move. TNR Gold TNR.v holds 50% of Shotgun deposit with historical 1 mil oz of Gold in J/V with Nova Gold and Iliamna property in proximity of Pebble.
VANCOUVER, March 19 /CNW/ - Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE AMEX: NAK) announces that the Pebble Limited Partnership ("PLP" or the "Pebble Partnership") Board of Directors has approved a US $59 million budget and work plan for 2009, with the potential for supplemental spending up to a total of US $70 million, to be spent towards completing a Prefeasibility Study and preparing the Pebble Project for permitting in 2010.
Pending the outcome of engineering trade-off studies currently underway, the PLP Board is expected to meet in August 2009 to finalize the Prefeasibility Study schedule and authorize additional program expenditures this year.
"The primary focus of the Pebble Partnership team in 2009 will be to produce the optimal project design, from an environmental, social and economic perspective," said Northern Dynasty President & CEO Ron Thiessen. "Not only does PLP expect to finalize a Prefeasibility Study, it will also be preparing to enter the state and federal permitting process under NEPA (National Environmental Policy Act) in 2010.
"These are significant project goals and milestones, and the PLP Board of Directors has approved an equally ambitious budget and work program for 2009."

Roxmark Mines RMK.v acquires remaining interest in Leitch gold property. RMK.v,, GDX, GDL, HUI, XAU

Company and its management is coming out of hibernation. General Bernanke advanced his troops yesterday, US Dollar retreat in panic finally. Canada and Gold sits nice on one pages for us. Premier Gold drills are turning on and even Roxmark itself feels the spring and gets out of cave.

TORONTO, March 18 /CNW Telbec/ - Roxmark Mines Limited (TSXV - RMK) today announced that it has acquired from Communications Corp. ("AdvantEXCEL") an undivided (approximately) 37% beneficial interest in certain mining claims located on the Leitch property near Beardmore, Northwestern Ontario (the "Property"). The remaining (approximately) 63% beneficial interest in the Property was already owned by Roxmark.
As consideration for the acquisition of the 37% interest in the Property (the "Acquisition"), Roxmark has paid AdvantEXCEL $103,000 and issued to AdvantEXCEL 1,150,000 common shares of Roxmark. The said common shares are subject to a hold period expiring on July 19, 2009. Pursuant to the terms of the Acquisition, the joint venture agreement relating to the Property previously in place between Roxmark and AdvantEXCEL has terminated.
The Leitch Mine, once one of Canada's richest, operated continuously from 1937 to 1965, processing 906,395 tons with a recovery of 0.92 oz. of gold per ton yielding 860,648 oz. gold at US$35/oz. It was serviced by a three-compartment shaft to 3,006', with a winze from the 19th or 2,875' level to the 30th or 4,525' level. The Property has historical resources which are not NI 43-101 compliant, are based on insufficient exploration work, and should not be relied upon.
Further information is available on the Company's website at and on SEDAR under the Company's profile at**http%3A//

Wednesday, March 18, 2009

Lithium: TNR Gold TNR.v Acquires Canadian Lithium Projects. TNR.v, FXI, SQM, GM, F, GOOG, RIMM, AMZN, CLQ.v, WLC.v

Will this electric car run one day on batteries made of Lithuim found by TNR Gold TNR.v we do not know, but it is great to see Energy and Action in all this end of the world Bubble Vision talks these days. Some people are still working and making things happen even in times of distress and total depression. We are biased here as always - we are investing into the future. We can be wrong on timing, on company and many other things, but Energy is there and we like the flow. After promising corporate update - now this move into Lithium. Canada sounds very good in addition to Alaska and Argentina properties and Los Azules play with Minera Andes

Wednesday March 18, 2009, 11:36 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2009) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR - News) is pleased to announce the acquisition by staking of the Forgan Lake and Niemi properties in the province of Ontario, which host Lithium and Rare Earth Elements (REE).
"Given the rapid penetration of high-powered portable devices, efficient hybrid motor vehicles, and the increasing prominence of lithium ion batteries as green energy alternatives in our daily lives, lithium is emerging as the highly sought-after commodity of the 21st century." President Gary Schellenberg adds, "We are pleased to add these properties in order to diversify the TNR portfolio as it aligns with our philosophy to be at the forefront of developing resources for the incoming demand of sustainable energy solutions. These acquisitions are the first of many progressive steps in establishing ourselves as a prominent Lithium and REE explorer."
Forgan Lake Project
The Forgan Lake Project comprised of 16 contiguous claims located east of Forgan Lake within the Thunder Bay District of Ontario. The project area, which hosts four previously drilled spodumene-bearing pegmatites, is part of the Georgia Lake pegmatite field, an area of considerable lithium and REE exploration since its discovery in the mid-1950's.
The four pegmatites, known as the No. 1, No. 2, No. 3 and No. 4, were part of a drilling campaign carried out in 1955 by Lun-Echo Gold Mines Limited. Of the 39 diamond drill holes, 33 holes were drilled on TNR's Forgan Lake property. Pegmatite is a coarse-grained igneous rock that can potentially host economic amounts of lithium amongst valuable REE such as tantalum, beryllium, niobium, and more.
The No. 1 pegmatite has been traced on surface for about 274.3 m at an average width of 9.1 m. It contains 30% medium to coarse-grained spodumene and sporadic black columbite ((Fe, Mn)2(Nb, Ta)2O6) crystals up to 3.8 cm long. Channel samples to note include: three samples averaging 2.57% Li2O over 6.4 m width; two samples, 24.4 m southwest of the first three, averaged 4.23% Li2O over 7.5 m width; and two samples 68.6 m farther southwest averaging 1.98% Li2O over 7.6 m width. The No. 2 pegmatite, which is similar in composition to No. 1, has been traced in outcrop for 45.7 m with an exposed width of 13.7 m.
The No. 3 pegmatite, located northwest of the No. 1 pegmatite, has been traced from Lucky Lake, a small body of water in the northeastern corner of the property, to southwest for 320.0 m with an averaged exposed width of 6.1 m. The No. 3 pegmatite contains approximately 25% spodumene. Lun-Echo explored this pegmatite with 10 diamond holes, totalling 832.1 m, at intervals of 30.5 to 61.0 m. The best intersection contained a 1.52 m section averaging 1.78% Li2O.
The No. 4 pegmatite has been traced on surface for approximately 243.8 m with an average surface width of 4.6 m. The pegmatite contains 10-15% fine to medium-grained spodumene.
In addition to historic drill confirmations, all identified pegmatites have not been delineated at Forgan Lake and thus the full extents of the deposits remain open.
Furthermore, the potential for other REE anomalies remains promising, as historic work by Lun-Echo Gold Mines Ltd. analyzed drill core exclusively for Li2O. Columbite has been noted in at least two of the four pegmatites on the Forgan Lake property is a further indication that an assessment of REE occurrences could also significantly increase the value of the Forgan Lake Property.
Niemi Lithium Project
The Niemi Lithium property consists of four contiguous claims located 27 kilometres South East of the Forgan Lake property.
Drilling and surface mapping in the 1950's by Lun-Echo Gold Mines Ltd. traced the pegmatite for a length of 128 m striking parallel to the metasediments. The pegmatite was estimated to be up to 9.3 m thick and 30.5 m wide. In 1955, Lun-Echo Gold Mines Ltd. investigated the property with a 35 vertical x-ray diamond drill hole program totalling 405.4 m. The drilling results include 1.02% and 2.0% Li2O over 4.72 m and 1.52 m, respectively. As on the Forgan Lake property, Lun-Echo analyzed only for Li2O hence leaving tremendous discovery potential for REE.
The Georgia Lake pegmatite field is approximately 32 km by 105 km, hosting over 38 known REE occurrences and 10 known spodumene pegmatite deposits. There are other very significant spodumene-bearing pegmatite deposits, such as Georgia Lake, Point, Jackpot and Salo, which occur within 3 km of the Niemi occurrence.
"We are encouraged that the Lithium content from the historic sampling programs on our newly acquired projects are in line with other Canadian deposits, such as the Nama Creek around Georgia Lake, Ontario with 3.9 million tonnes grading at 1.06% Li2O and the Preissac-Lacorne in Quebec with 19 Million tonnes grading at 1.25% Li2O (Sinclair, 2001)," commented Schellenberg. "By focusing on all economic rare earth commodities within the pegmatite instead of just lithium, we believe the Niemi Lithium deposit holds tremendous potential."
This news release has been prepared under the supervision of Ike Osmani, PGeo, TNR's qualified person on this news release.
TNR is a diversified base metals, precious metals, and energy exploration company focused on identifying new prospective projects internationally with a large portfolio of 15 properties in Argentina and well as overseeing the exploration and development of the Iliamna and Shotgun projects in Alaska through its new wholly owned US subsidiary, Bristol Exploration Co. Inc.
Even as a global slowdown grips the economy, a clear shift to energy efficient solutions and power conservation will reveal that TNR is well positioned to benefit our shareholders.
On behalf of the board,
Gary Schellenberg, President
Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Tuesday, March 17, 2009

US Dollar Crash Alert: level 87 is crucial! DXY, TYX, VIX, HUI, XAU, SLW, MGN

US Dollar is sitting right on crucial 87 level, it was resistance on Fisrt Double Top H&S formation after which dollar went in a waterfall mode. Waterfall has been started after 86 level violation last time, this time level 87 will be the same threshold with confirmation below 86.
All momentum indicators are decisively Bearish now, on weekly Double Top reversal is in a confirmation mode.

Decoupling: China relaxes rules for firms to invest overseas FXI, RTP, BHP, CZX.v,, TNR.v

Decoupling in action continues, China is making its move for expansion overseas using opportunity of depressed assets values. Commodities and technology will be the priority again.
SHANGHAI, March 17 (Reuters) - China's Ministry of Commerce has relaxed rules to make it much easier for Chinese companies to win approval to invest overseas, in the country's latest move to encourage its companies to go abroad.
China, the world's No. 3 economy and the biggest foreign owner of U.S. Treasury bonds, is keen to diversify the investments made using its nearly $2 trillion pool of foreign-exchange reserves, the world's biggest.
Although China is also turning more cautious in overseas investment after the global financial crisis left some firms nursing heavy losses in overseas acquisitions, outbound mergers and acquisitions by Chinese companies still leapt 64 percent last year to $47.8 billion, Thomson Reuters data showed.
Now according to new rules that take effect on May 1, local authorities under the Ministry of Commerce will have the power to give approval for most corporate overseas investment projects, the ministry said in rules published late on Monday on its website,
The ministry will only retain the power to give approval for corporate overseas investment worth $100 million and above for a single project or investment in a country that does not have diplomatic relations with China, the rules said.
The rules apply to the establishment, mergers and acquisitions of only non-financial companies, the ministry said.
The official Shanghai Securities News said on Tuesday the changes meant 85 percent of Chinese foreign investment projects would be approved by local commerce authorities when the new rules come into effect.
The newspaper also quoted the ministry's spokesman, Yao Jian, as saying that most corporate overseas investment projects would be approved within three days of their application.
On March 5, Beijing also promulgated new regulations to devolve some authority for approving more foreign investment projects to local authorities, making it easier for foreign investors to set up shop in China.
Under these regulations, merger deals involving foreign investment in China in most sectors with a price tag below $100 million only need approval from local commerce authorities, rather than the ministry. Sectors where foreign investment is "forbidden" or "restricted" are excluded from the changes.
The easing comes amid a slowdown in inflows of foreign direct investment (FDI). China drew $13.37 billion in FDI in the first two months of this year, 26.2 percent less than in the same period in 2008. (Reporting by Lu Jianxin; Editing by Ken Wills)

Monday, March 16, 2009

Lithium: China Is The Key To Mass Acceptance Of Electric Cars FXI, WLC.v, CLQ.v, SQM, GM, F, TMT, GOOG, AAPL, AMZN, RIMM, QQQQ

Jay YarowMar. 11, 2009, 4:34 PM13
Loads of people still hang onto fears of poor Chinese manufacturing, but if we want to get cheaper electric cars in the United States, we should let go of those fears.
Daryl Siry, former chief marketing officer for electric car start up Tesla, argues that we need to outsource more of our electric auto production to China. In addition to the added cost of batteries for electric cars, the high labor costs in the US push the sticker price on electric cars too high.
For instance, the "cheap" Tesla sedan, the Model S, is projected to cost $58,000, but Siry thinks it will cost much more, closer to the $87,000 car being developed by Tesla rival, Fiskar, another electric automaker. The Chevy Volt, a comparatively affordable electric car still costs $40,000. Those prices look astronomical in comparison to Chinese automaker BYD's $22,000 electric car which should hit our shores in two years. (BYD is in portfolio of Warren Buffet - S.)
Few automakers want to get their cars built in China, because the nation has a reputation for shoddy quality. But if they can shake off the stigma that comes with Chinese production, automakers could build less expensive electric cars in China. The low price would then hurry along mass adoption, helping to wean us off oil.
The biggest problem with Siry's plan, though, is that all US automakers seem to need a bailout of some sort. Tesla is hoping for Energy Department money, as is Fisker. The struggles of GM and Chrysler are well documented. Siry argues that companies such as Apple design their products in the US and manufacture them in China. The quality isn't any worse and it still supports American industry. While it's a good thought, we doubt the government would be willing to finance companies that design and sell electric cars in the US but make them elsewhere.

US Dollar collapse: Foreign debt purchases fall sharply in January DXY, GDL, SVL, GDX, SLW, TNR.v, RMK.v, BTT.v, GBN.v,, SBB.v, MGN, OK.v,

Offshore banking centers sell Treasurys; central banks sell agencies
By Laura Mandaro, MarketWatch
Last update: 3:59 p.m. EDT March 16, 2009
SAN FRANCISCO (MarketWatch) - A big jump in foreign sales of long-term U.S. securities raised concerns Monday that the U.S., in the midst of a massive debt issuance to fund its economic revival plans, may run into trouble getting other countries to finance its deficit.
Foreign purchases of long-term U.S. Treasurys, Fannie Mae bonds, corporate debt and stocks -- netted for acquisitions of foreign debt from U.S. residents -- dropped to negative $43 billion in January from positive $34.7 billion in December, said the Treasury Department Monday.
January's sales marked a record low, said currency strategist Michael Woolfolk, and the reasons for the plunge could spell bad news for the U.S. dollar.
"This was a truly awful report, throwing into question the funding of the U.S. current account deficit," said Woolfolk, senior currency strategist at the Bank of New York Mellon, in emailed comments.
Economists anticipate the U.S. current account gap, or the balance of trade with other countries in goods, services and investments, narrowed to a deficit of about $137.5 billion in the fourth quarter. The Commerce Department releases that report Wednesday. See Economic Calendar.
Concerns that U.S. creditors could balk at buying more U.S. debt were thrown into relief last week after China, the biggest holder of U.S. government debt, said it was worried about the safety of its U.S. bonds.
The U.S. is in the midst of raising more than $2 trillion by selling Treasurys, beating past records by a wide margin, according to estimates by big bond dealers.

Importantly, both China and Japan increased their holdings of U.S. Treasurys, though Chinese purchases slowed from their 12-month average in December and January, said RDQ Economics.
Troubles at now nationalized mortgage finance giants Fannie Mae and Freddie Mac prompted foreign investors to flee this category of government debt in the second half of last year, helping drive up yields relative to Treasurys. In response, the Fed in late November said it would start buying those bonds to bring down yields and related mortgage rates.
The continued selling of agency and U.S. corporate bonds suggests a structural problem within the U.S. balance of payments "that could begin to undermine the USD," Woolfolk said.
On Monday, the U.S. dollar fell against the euro and other trading rivals. Analysts attributed the decline to investors buying more risky assets, such as stocks and the British pound, after Fed Chairman Ben Bernanke said he expected the U.S. recession to end this year.
One euro bought more than $1.30 for the first time since February. The dollar index slid 0.1%. Read more in Currencies. U.S. Treasurys fell on the same news, with yields on the benchmark 10-year gaining 6 basis points to 2.95%. Yields have edged up since the start of the year, but at levels below 3%, they are still historically quite low.
Tax haven sell-off
More broadly, monthly foreign capital flows that include net foreign purchases of long-term securities, short-term U.S. debt such as Treasury bills and banks' liabilities, fell to negative $148.9 billion. That was also a record low, said Woolfolk, and suggests foreigners fled T-bills and banks deposits after plowing their cash into these safe-haven holdings in October and November.
The Treasury's report on capital inflows rarely moves markets because of its considerable lag: Investors won't get February's report until mid-April. But viewed over the long term, it can yield clues on the debt purchases that have been bolstering the dollar and keeping yields on U.S. Treasurys low.
One trend of note was a large volume of sales in tax havens, including Caribbean banking centers and Luxembourg.
Caribbean holdings of U.S. Treasury securities fell $20.9 billion, while holdings in Luxembourg slid $10.2 billion.
"The sales reek of hedge fund selling and quite possibly from investors who were Madoff-ed," said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co., referring to reports of Luxembourg-based hedge funds said to have lost money by investing with fraudulent New York financier Bernard Madoff
Or, said analysts at RDQ Economics, the sale of Treasurys by Caribbean-based investors may reflect hedge fund money that had been betting that the Fed would by U.S. Treasurys - as it suggested in December it was considering. It has refrained from buying Treasurys on the open market so far. Read more on Fed's plans to buy U.S. Treasurys.
"Once it appeared that the Fed was backing away from such an action, those positions were taken off," they said.
Laura Mandaro is a reporter for MarketWatch in San Francisco.