Special Week-end Silver and Gold Research Update for 1/21/12/.....Peter R....Southern Trust Metals, Inc.

Good morning Andrew,

On January 13th I sent out a special update to alert you to the possibility that the Fed may soon implement another round of quantitative easing (QE)....This essentially means that the Fed will turn on the printing presses again and create another boatload of U.S. Dollars ....The resulting cash liquidity is intended to stimulate the U.S. economy, and shield it from possible negative fallout if the European financial mess intensifies....Others are calling it a political ploy....Regardless the implications would be far reaching....The Dollar would fall and the metals; along with other commodities would likely surge.....The last time the Fed turned on the presses (QE2), Silver went from $20.00 to $30.00 in rapid fashion.....I am writing you to let you know that Wall Street rumors are now intensifying .....There is talk that the Fed may acknowledge the possibility of (QE3) as early as next week during it's Federal Open Market Committee Meeting....The metals are already pushing higher as the rumors spread....I thought you might want to made aware.....P.S.

I just came across another intersting news article justifying higher prices in the metals complex....Geo-political anxiety looks to be on the rise again.....Enjoy the article....

EU set to turn screws on Iran

David Blair, London

January 22, 2012

 

THE European Union is preparing to launch an unprecedented attack on Iran's economy at a moment when experts believe the confrontation over the country's nuclear ambitions is entering a dangerous new phase.

An embargo on Iran's oil is due to be agreed by EU foreign ministers tomorrow, potentially depriving Tehran of a quarter of its total exports. Designed to increase pressure on Iran to negotiate over its nuclear program, it is also a measure of the scale of concern.

Officials note that a series of events - ranging from the storming of the British Embassy in Tehran to the regime's threats to disrupt oil supplies in the Gulf - prove that Iranian decision-making is becoming more belligerent and unpredictable.

Iran should be able to find other customers, notably India and China, but officials expect them to drive a hard bargain and insist on lower prices, costing Iran billions of dollars.

The oil sanctions are likely to be balanced with an offer to negotiate. But because of the consequences for its economy, Iran may ignore any conciliatory gesture and view the step as an escalation, possibly even a precursor to war.

China and Russia remain opposed to tightening UN sanctions on Iran but after four UN resolutions designed to squeeze the Iranian economy, in addition to unilateral steps taken by the US and the EU, the effects are clearly showing.

Underlying all this is increasing concern about the progress of Iran's nuclear program. It entered a new phase this month with the onset of uranium enrichment inside a previously secret plant that could be immune from military attack.

Experts and officials have no doubt that Iran wants the option of building a nuclear weapon. But there are questions about whether it would actually go ahead and build a bomb.

''Iran is looking for a latent nuclear weapons potential or capability and not for nuclear bombs,'' said Peter Jenkins, Britain's permanent representative to the International Atomic Energy Agency between 2001 and 2006. That would put it in the same category as Japan and Germany, which have the technology to make nuclear weapons.

''Capability would give them a lot of what they're after at relatively low cost, whereas going the full way involves great risk,'' Mr Jenkins said.

By seizing the ability to make a bomb, Iran's regime could guarantee its own survival and extend its influence. But if it took the final step and made a weapon, Iran would have to expel IAEA inspectors and publicly withdraw from the nuclear non-proliferation treaty.

The US military's top official held talks on Friday with Israeli leaders to try to co-ordinate responses to Iran's nuclear program. US Joint Chiefs of Staff chairman General Martin Dempsey, before talks with Israeli Defence Minister Ehud Barak, appeared to reflect concern about possible Israeli plans to move independently to strike Iran's nuclear facilities. ''The more we can continue to engage each other, the better off we'll all be,'' General Dempsey said.

''There is never a dull moment, that I can promise you,'' Mr Barak said.

TELEGRAPH, WASHINGTON POST

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