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To: 4figureau who wrote (5028)	6/30/2003 9:22:56 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

List News: APG.TO Apollo Gold Corporation Announces Completion of Line of Credit with Standard Bank of London Limited - Canada NewsWire biz.yahoo.com ELD.TO Eldorado Gold Corporation: Positive Environmental Certificate Received for Kisladag Gold Project - Business Wire biz.yahoo.com MWA.TO McWatters Completes $14 Million Private Placement - CCNMatthews biz.yahoo.com

To: 4figureau who wrote (5028)	6/30/2003 11:16:29 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 5423

House of Saud = House of Cards by Bill Powers, Editor Canadian Energy Viewpoint June 29, 2003 financialsense.com One of the most important political and economic events of the first decade of the 21st century is the coming regime change in Saudi Arabia. Predicting the fall of governments is very similar to shorting stocks, one gathers all the fundamental facts about the situation, checks and re-checks all facts and figures, and then takes action. While it is impossible to predict the time and date of the fall of the House of Saud, a preponderance of evidence suggests it is inevitable. Let’s examine several of the myths surrounding the current state of affairs in Saudi Arabia and what the country’s downfall will mean for investors in the Canadian energy sector. One of the greatest myths regarding Saudi Arabia is that it is a wealthy country. While it’s true that Saudi Arabia has the world’s largest oil endowment and a royal family that leads the world in conspicuous consumption, the country’s financial health continues to deteriorate. The country’s severe economic problems are a result of an exploding population and a lack of economic growth outside of the oil industry. The country’s population has grown from 10 million citizens in 1980 to over 22 million today. Despite many protestations by the royal family that Saudi Arabia has invested its oil money in infrastructure, defense and an economic diversification plan, the country has little to show for all of its spending. Saudi Arabia is burdened with more military equipment than it could possibly use, woefully uncompetitive state supported industries and poor infrastructure. Where did all of the money go? It was frittered away by the thousands of dependents of the royal family and stashed in overseas bank accounts. With little exploration success since the 1960s and many of its fields showing signs of decline, Saudi Arabia is having an increasingly difficult time keeping production flat. According to energy investment banker Matt Simmons, head of Simmons and Company International, many of the country’s aging fields are showing increased water cuts. Water cuts, water produced along with crude oil that is later separated, are a sure sign that a field is headed into decline. The country’s largest field, Ghawar, now produces over 1 million barrels of water a day along with its nearly 4.5 million barrels of crude. With Ghawar accounting for 60% of the country’s 7.5 million barrels per day of crude production, there is little hope Saudi Arabia can keep production flat if Ghawar continues to water out. Since Saudi Arabia cannot invest the billions of dollars needed to maintain current production and develop smaller fields, Ghawar has assured the world high oil prices are here to stay. and more / jim

To: 4figureau who wrote (5028)	6/30/2003 11:24:44 PM
From: Jim Willie CB	Respond to of 5423

from Puplava's Financial Sense wrapup for Monday financialsense.com The Fed has been manipulating bond market sentiment through its Open Mouth Committee. By strategically giving speeches at key junctures in the markets the Fed has been trying to guide the markets in the direction of its policy. In one sense their policy amounts to keeping both markets fooled. They need to keep the stock market bubble going so they talk about renewed economic growth. At the same time they need to keep the bond markets subdued so they talk about deflation. All the while the Fed injects huge amounts of money into the system which is nothing more then monetary inflation. You can talk all you want about deflation but as long as the monetary spigots run wild we will be dealing with inflation. At some point it may even turn into hyperinflation of the Weimar variety. It hasn’t quite dawned on the bond markets yet what that monetary inflation is going to look like, so the spec crowd keeps playing the game of paper chase looking for yields around the globe. The whole derivative market estimated to run $140 trillion worldwide is basically betting the ranch that interest rates will remain low. In fact everyone is leaning on one side of the boat completely oblivious to what might happen if a rogue wave appears and interest rates spike up. If that happens some big players aren’t going to make it. The way that everything is all daisy chained together I would suspect that quite a few big players might not make it through the monetary storm. The timing is the big question--when and what will be the catalyst that turns this market upside down. now where have I heard the name Weimar before ??? even Puplava likes Daisy !!! / jim