China web users call for 'Jasmine Revolution'

BEIJING - Postings circulating on the Internet have called on disgruntled Chinese to gather on Sunday in public places in 13 major cities to mark the "Jasmine Revolution" spreading through the Middle East.

The calls have apparently led the Chinese government to censor postings containing the word "jasmine" in an attempt to quell any potential unrest.

"We welcome... laid off workers and victims of forced evictions to participate in demonstrations, shout slogans and seek freedom, democracy and political reform to end 'one party rule'," one posting said.

The postings, many of which appeared to have originated on overseas websites run by exiled Chinese political activists, called for protests in Beijing, Shanghai, Guangzhou and 10 other major Chinese cities.

Protesters were urged to shout slogans including "we want food to eat," "we want work," we want housing," "we want justice," "long live freedom," and "long live democracy."

Chinese authorities have sought to restrict media reports on the recent political turmoil that began in Tunisia as the "Jasmine Revolution" and spread to Egypt and throughout the Middle East.

Unemployment and rising prices have been key factors linked to the unrest that has also spread to Bahrain, Yemen, Algeria and Libya.

Searches Sunday for "jasmine" on China's Twitter-like micro-blog Weibo ended without results, while messages on the popular Baidu search engine said that due to laws and regulations such results were unavailable.

Some Chinese Internet search pages listed "jasmine" postings but links to them were blocked.

The Chinese government has expended tremendous resources to police the Internet and block anti-government postings and other politically sensitive material with a system known as the "Great Firewall of China."

In a speech given Saturday, Chinese President Hu Jintao acknowledged growing social unrest and urged the ruling Communist Party to better safeguard stability while also ordering strengthened controls over "virtual society" or the Internet.

"It is necessary to strengthen and improve a mechanism for safeguarding the rights and interests of the people," Xinhua news agency quoted Hu as saying.

A key to achieve the goal is to "solve prominent problems which might harm the harmony and stability of the society... safeguard people's rights and interests, promote social justice, and sustain sound social order."

Iceland president rejects Icesave bill

The President of Iceland, Olafur Ragnar Grimsson, has decided that the latest Icesave bill will be sent to a public referendum.

The president said his decision is based mostly on the fact that there is public support for a referendum and that it is his constitutional responsibility to uphold the public’s will when it differs from parliament’s. He added that the new Icesave bill is clearly much better than the previous one, but that his public responsibility supersedes personal political opinions. As the public was involved in voting for the last Icesave bill; and because parliament has not changed through a general election since; the public should also be involved in the latest decision. This would not be true if there was a strong consensus that Althingi’s decision should stand — but there is no such public consensus today, he said.

This is now the third time the current president has refused to sign a bill into law — the only Icelandic president ever to have used the power.

Asked whether the public should be involved in decisions relating to national debt and budget; the President said that the Icesave issue is much simpler than Iceland’s European Union accession, but everybody agrees that that will go to a public vote. The public should be trusted and listened to, he reasons.

Grimsson told reporters he had decided to send the bill to a vote because only a small majority of parliamentarians voted against the idea, while a large proportion of voters signed the petition calling for a referendum. He does not believe, on the other hand, that rejecting a bill which passed parliament with a strong majority of 44 against 16 effectively undermines the power of the country’s parliament.

The President’s entire speech can be read in English here.

FOX LIES! FOX LIES! FOX LIES! FOX LIES! FOX LIES! Wisconsin Protester

2 million Egyptians in Tahrir Square many chant To Jerusalem we are head...

140 'massacred' as Gaddafi sends in snipers to crush dissent

Snipers shot protesters, artillery and helicopter gunships were used against crowds of demonstrators, and thugs armed with hammers and swords attacked families in their homes as the Libyan regime sought to crush the uprising.

"Dozens were killed ... We are in the midst of a massacre here," a witness told Reuters. The man said he helped take victims to hospital in Benghazi.

Libyan Muslim leaders told security forces to stop killing civilians, responding to a spiralling death toll from unrest which threatens veteran leader Muammar Gaddafi's authority.

Read More: http://www.telegraph.co.uk/news/worldne ... ssent.html

Bottleneck or Supply Deficit?

There have been numerous reports of bullion shortages in many parts around the world, along with rising premiums. And the two explanations – we’re running out of gold! and, it’s just a manufacturing bottleneck – are at odds with one another. So, who’s right?
First, the data. The following has been reported since New Year’s eve horn-blowers were put away:

1. Report from China: “…premiums for gold bars jumped to their highest level in two years.”
2. A director at Cheong Gold Dealers in Hong Kong: “I don’t have any gold. Premiums are very high. Some say they have no stocks on hand.”
3. A dealer in Singapore: “There’s a sudden surge in demand. Demand from China is very strong and they are paying very high premiums. Refiners can’t meet the demand.”
4. World Gold Council report: “…gold imports by India likely reached a record last year due to increased investment demand. Imports will probably be the highest for India in its history.”
5. Nigel Moffatt, treasurer of the Perth Mint: “…demand for gold bullion has been unrelenting since gold dropped below $1,400 an ounce. At the moment demand is such that we cannot meet all the enquiries we are getting. Demand for our coins and medallions is strong, but the biggest demand is coming from banks and traders looking for kilo bars.”
6. Eric Sprott, chief investment officer of Sprott Asset Management, after having difficulty locating enough bullion for their new silver fund: “Frankly, we are concerned about the illiquidity in the physical silver market. We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver.”
7. 2010 gold Buffalo coins are largely unavailable from dealers.
8. Sales of silver Eagles set a new record in January – by the 19th of the month. Already, 4.6 million coins have been sold, an all-time monthly high since the coin’s release in 1986.

Based on this data alone, you might come to the conclusion that yes, we’re running low on bullion supply. But most industry execs I spoke to insist this is a “bottleneck” issue: current demand is greater than current stock on hand, or is coming in faster than mints can produce. In other words, it’s a fabrication issue, not a supply deficit. A Treasury rep said as much.
You’ll recall from 2008 how supply was difficult to come by and premiums were roughly double what they are now. Some think it will be “lesson learned” this time around; mints now know how to prepare for another spike in demand. Many have added workers, shifts, and facilities. The U.S. Mint stopped producing the less popular coins and now focuses on those that are most in demand.
To a large extent, I believe the bottleneck argument is exactly what’s happening. It’s no different than the store that sells old-fashioned wooden rocking chairs suddenly getting swamped with customers when an antique dealer declares they’ll be valuable collectibles in the future. Collectors rush to buy, and the store doesn’t have enough rocking chairs in its warehouse. But they’re not running out of wood. And they’ll likely be better prepared when they hear the dealer is coming out with a book.
It’s true there’s only so much gold coming to market every year (total 2010 supply is estimated to have been about 115 million ounces), but in the big picture, there’s been enough. It’s also true that orders from the 2008 rush were eventually filled. However, I think the “bottleneck” and “we’re running out” arguments miss the point, because they both focus on supply.
Demand is what I’m concerned about. Now try this data:

1. According to International Strategy and Investment Group, gold ownership currently represents 0.6% of total financial assets. If it rose to just 1.2% – still less than half its 1980 level – it would require an additional 917.1 million ounces, or 16% of aggregate gold worldwide. This amount is equal to about 10 years of current global production.
2. Investment demand represented 53% of all gold demand in 1979; today, it represents just 32%. Coin demand represented 37% of all demand in 1979; today it’s less than 14%.
3. Gold and gold mining stocks represented 26% of all global assets in 1981 (high inflation), and 20% in 1932 (high deflation). Today, gold and gold mining shares represent about 1% of global assets.
4. The market cap of the entire gold industry is about the size of Microsoft, is less than Exxon Mobil, and is 10 times smaller than the banking industry. The whole of the silver industry is smaller than Starbucks.
5. Silver mine production is insufficient to meet current demand. The only way silver needs are fulfilled is from scrap coming to market. Miners don’t produce enough on their own.
6. There are approximately 40% more earthlings right now than there are ounces of gold that have ever been mined. That includes every ounce used in jewelry, electronics, and dental. Further, if every ounce of supply last year were made into coins and bars for investment purchase, it would amount to less than two one-hundredths of an ounce, or about half a gram, for every man, woman, and child on earth. This means 0.018% of the global population – about one in every 55 people – could buy a one-ounce gold coin this year.

Yes, there is a bottleneck. But with this recent spike in demand, it appears some mints still aren’t equipped to keep up. Are we nearing a tipping point where in spite of the increased efficiency and preparedness, requests from buyers will outweigh available supply? Imagine demand continuing to accelerate, and you can see where this might be headed. I think this is the side of the equation to watch.
Andy Schectman of bullion dealer Miles Franklin told me last summer that, “Based on what I know, it’s my opinion that if 5% of this country put 5% of their money into gold, there would be nothing left tomorrow morning.” In other words, even if supply is sufficient at present, what happens if demand, say, doubles, as the above data show is possible?
Right now in North America you can still get bullion, but we’re clearly on a path where demand could overwhelm the system, making purchases very difficult. When that point arrives, many investors will wish they hadn’t worried so much about price.
Imagine Doug Casey is right about the future value of the dollar: zero. Imagine how high inflation would rocket in such a scenario.
Bottleneck, meet desperation.
[The Chinese and other governments are gobbling up gold as fast as they can, adding vast amounts to their already large holdings. Because they know something many mainstream investors don’t: the U.S. dollar is on its last leg. To find out how to protect yourself – and to profit – watch this free video.]