Gold rises/Japan's nuclear reactors in trouble.

Harvey Organ Monday, March 14, 2011

Gold rises/Japan's nuclear reactors in trouble.

 

Gold's launch will shock markets, Turk tells King World News

 

Number 2 Reactor Explodes, Damaging Core Containment Structure



Are We In Danger of Radioactive Exposure from the Japanese Nuclear Leaks?

Gamma Radiation In Fukushima-Downwind Ibaraki Disclosed, 30 Times Above Normal

Submitted by Tyler Durden on 03/14/2011 17:24 -0400

For all who have been looking for realtime radiation data from Japan, you are in luck. Or maybe not, as the data unfortunately indicates nothing good. The System for Prediction of Environment Emergency Dose Information (SPEEDI) releases gamma radiation data online. The site is jittery and apparently not suited for major traffic which is why we represent several screen captures of the data. While it is not surprising that according to the website both Miyagi and Fukushima prefectures are entirely "Under Survey" as it makes sense that the government does not want to generate panic, SPEEDI has disclosed some tell-tale data about cities in Ibaraki prefecture, which is just a hundred or so miles north of Tokyo, and is just south of the ill-fated Fukushima prefecture. And the data is stunning: based on a N, NE and NNE wind direction (where it originates), meaning all coming from Fukushima, with a normal reading in the 80 nGy/h range, the city of Kounosu Naka is at 3,024, Kadobe Naka is at 2,416, Isobe Hitachioota is at 1,213 and many others are in the mid to upper triple digit range! Again, this is based on wind coming out of Fukushima and ultimately headed toward the capital. Indicatively, normal terrestrial plus cosmic gamma radiation is about 80 nGy/h.

As Treasury Cash Drops To Just $14.2 Billion, And No Bond Auctions Until Next Week, Is America About To Run Out Of Cash?

Submitted by Tyler Durden on 03/14/2011 16:22 -0400

And so the US Treasury has hit the proverbial paycheck to paycheck sustenance level. After burning $12.8 billion (without a change in gross debt) in cash today alone, and $75 billion in the month of March so far, primarily driven by a back end-loaded tax refund calendar, according to the Daily Treasury Statement, today's cash balance dropped to the scary level of just $14.2 billion. Without the benefit of incremental funding, this is the same amount that the Treasury burns on a good day! In other words, we take back what we said about the US Treasury existing paycheck to paycheck - Geithner now has to scramble to find funding on a day to day basis. If tomorrow operating outflows surpass $14.2 billion (and, again, the amount was $12.8 billion today) the world's "greatest" country (i.e. banana republic) runs out of cash, period. And as the following schedule indicates, there are no Long-Term bond issuances until next week (and the Bill issues are merely funding of rolling issues), we have some trouble seeing how the US Treasury will fund itself for the balance of the week...

Does The "Ring Of Fire" Guarantee At Least One Magnitude 8 Aftershock, And Ten Of Magnitude 7 Or Higher?

Submitted by Tyler Durden on 03/14/2011 15:39 -0400

For Japan, it's nowhere near over, at least if the Pasadena Jet Propulsion Laboratory (creator of such brainiac things as the Mars rovers) is correct. While Japan has experienced numerous magnitude 5 and 6 aftershocks (405 in total to be precise), the big ones are still to come: "Japan's largest quake on record, which hurled a 7-meter (23-foot) wave landward after one plate slid beneath another off the coast of Sendai, had an 8.9 magnitude. The aftershocks will likely include at least one measuring 8 and 10 of magnitude 7, JPL geophysicist Andrea Donnellan said. All are many times larger than the 6.3-level New Zealand quake in February that leveled the Christchurch business district and killed 160." Should we get more 8+ earthquakes, the likelihood of further tsunamis unfortunately jumps exponentially. And while scientists have long been expecting "the Big One" to hit Los Angeles so far without success, unfortunately carrying over that logic to Japan is more than naive.

Market Commentary From Monty Guild

Posted: Mar 14 2011     By: Monty Guild      Post Edited: March 14, 2011 at 3:43 pm
Filed under: Guild Investment

Selling U.S. and Canada and Continuing to Favor Oil and Gold

This week’s letter is short. As we have mentioned in the past we believe that oil will go to $150 per barrel this year and we believe that this will be  promulgated by a possible change of regime in Saudi Arabia  and other  oil-producing states in the Middle East and Latin America.
Accordingly, we are taking profits and closing our buy  recommendation on the U.S. and Canadian markets at this time.  We continue to recommend Japan and Australia  because we do not want to sell Japan during the earthquake aftermath; we will wait for a bounce in the stock markets in this region.
We continue to be very bullish on gold and oil and we believe that holding these two assets in commodity form or in  the shares of fast-growing or high-yielding gold or oil producers is the best approach. We believe that gold will exceed $1600/ ounce in the near future and will move higher over the long-term. Caveat: Be careful to avoid oil producers who have a large proportion of their production from the Middle East.
Comex Gold

Nymex Crude Oil

Investment	Date Recommended	Appreciation/Depreciation in U.S. Dollars
Commodities
Gold	6/25/2002	336.8%
Oil	2/11/2009	179.9%
Currencies Singapore Dollar	9/13/2010	5.4%
Thai Baht	9/13/2010	6.5%
Canadian Dollar	9/13/2010	5.6%
Swiss Franc	9/13/2010	8.4%
Brazilian Real	9/13/2010	2.7%
Chinese Yuan	9/13/2010	2.7%
Australian Dollar	9/13/2010	8.3%
Countries
U.S. (Sold)	9/09/2010	18.1%
Colombia (half of our original position)	9/13/2010	-0.6%
Canada (Sold)	12/16/2010	7.9%
Australia	02/15/2011	-4.0%
Japan	02/15/2011	-4.6%

Please note that we are selling Canada and the U.S. and closing our recommendations on these two countries this week on our recommended list.
Please click the link below to see our current and closed recommendations:
03/11/2011 Current and Closed Recommendations