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The Best Climate on the Planet Earth

Want to spend April in Paris? Fine, but take an umbrella — and a warm jacket. August in San Francisco? “The coldest winter I ever spent was a summer in San Francisco,” Mark Twain is rumored to have said of that city’s notoriously chilly summertime weather.

What about the climate that never changes, that is always delicious year-round? Is there such a thing as the best climate in the world?

That question, recently posed by the Post-Gazette to travel and weather experts, met with some serious head-scratching. Geoff Cornish, a meteorologist with Penn State University’s Department of Meteorology, said there have been no formal studies of “best” versus “worst” climate. And while “great climate” might conjure up images of weather in the mid-70s, plenty of sunshine and enough rainfall to sustain flora and fauna, for other travelers, a great climate might also mean 15 inches of new snow to ski on.

“Personally, climate is a very subjective thing,” said Mr. Cornish. “Whether a climate is best or worst all depends on what you like. A lot of people would say Southern California has the best climate, because of all the sunshine and low humidity, but I’d be bored out there. Being a meteorologist, I thrive on severe weather or bad weather. That’s a great climate to me.”

Joe Brancatelli, who runs JoeSentMe.com, a Web site for business travelers, would choose Rome or Hawaii, although “you can’t do better than San Diego for year-round comfort.”

“My response to that question is immediately personal,” he added. “My family and I love Hawaii and Rome for cultural and emotional reasons, plus the climate in both places is pretty good, but not perfect. In Rome in January and February, it can range from 35 to 70 degrees, but that’s part of the fun. There’s nothing like the first warm day in Rome, when the restaurateurs put the tables out and all the Romans come to sit outside.”

Nonetheless, an Internet search using the words “best climate in the world” yielded five places vying for that title — for marketing purposes, if nothing else. Good-weather junkies, take your pick:

Atlixco, Mexico

Located in the shadow of Popocatepetl , one of the world’s most dangerous volcanoes, and 2 1/2 miles north of Mexico City, this charming little town boasts the best climate in the world, with semitropical gardens, Colonial architecture and friendly people. At 6,000 feet in elevation, Atlixco is “renowned for its benign climate, which varies by only a few degrees Celsius year-round,” according to Wikipedia, meaning the low- to mid-80s Fahrenheit.

From a tourism standpoint, it’s not well-developed — a local cafe “has a rooftop area where you can have a cold drink and watch the squirrels racing up and down the tree trunks” — but there are colorful marketplaces and festivals, so who cares if you can’t go jet-skiing?

The Canary Islands

Considered Europe’s Hawaii, this volcanic archipelago off the Atlantic Coast of Morocco supports temperatures ranging year-round from 64 to 77 degrees with micro climates ranging from subtropical to snow-capped mountains, and summer heat softened by the trade winds. “Indeed,” brags the Web site for the city of Las Palmas de Gran Canaria, the international scientific community recognizes this as one of the cities with the best climate in the world … according to “a thorough study conducted by the University of Siracusa” and “the U.S. newspaper, USA Today.”

Nonetheless, there is pretty widespread consensus that the Canary Islands have a great climate, even if parts of them are overrun by tourists and retirees.

“It doesn’t have tremendous extremes,” noted Ken Reeves, a meteorologist with Accuweather.Com, who has visited there. “There’s some rain coming off Africa, but tropical weather systems don’t affect it much. It can be arid, in fact, but they grow grapes, which are very sweet, and the waters are warm enough to swim in year-round.”

Costa Rica

“The Healthiest Climate in the World According to NASA Research.” So says one Web site for this relatively modernized Central American country. Alas, Alberto Sanchez, a planner with the Costa Rica Tourist Board, was unable to provide further details about the NASA research, but Accuweather’s Mr. Reeves cautions visitors to pick their spots carefully. The climate is soft and mild in the mountains, but hot and sultry in the lowlands. On the country’s west coast, it’s drier, but be careful near the Caribbean, where, he says, “you may end up having humidity issues.”

Actually, the higher elevations in most of Central America’s countries may have an equally good climate, but are not — yet — as economically developed, which may be why they don’t advertise their weather. Penn State’s Mr. Cornish remembers a trip to Tegucigalpa, the capital of Honduras. It was “surprisingly” pleasant, he said, with pine forests and temperatures in the high 70s to lower 80s year-round, mostly because of its high elevation. “But there was lots of poverty there, too.” Honduras may not be ready for tourism prime time yet, but it’s getting there.

Faulconbridge, Australia

Located in the Blue Mountain range just 90 minutes outside Sydney, the little town, at 1,463 feet above sea level, boasts mild temperatures, evenly distributed rainfall and mild humidity, according to www.infobluemountains.net.au.

“We claim to be recognized by the World Meteorological Organization as having the world’s most equitable climate.” So says the Web site’s author, the late David Martin, who also noted he had “no authoritative confirmation” to support his claim. Calls to media representatives at the World Meteorological Organization in Geneva, Switzerland, were not returned.

“However, former Member of Parliament, Mr. Alasdair Webster, told the author that he attended a conference in the USA, where a WMO scientist was speaking. The scientist was asked where the world’s best climate is. He replied, in effect, ‘You won’t have heard of it, but there’s a village called Faulconbridge, in the Blue Mountains in Western Sydney, Australia.’ Later, he was surprised when Webster introduced himself as a local resident.”

Tim Tranter, who runs Tread Lightly Eco Tours in the Blue Mountains, describes the weather as cool to mild, with snow at higher elevations a few times a year, cool, temperate rainforest at higher elevations and milder weather in villages like Faulconbridge. “Definitely good human compatible,” he wrote in an e-mail, which started out with a very Crocodile-Dundee-esque “G’day.”

Redwood City, Calif.

“Climate Best by Government Test.” That’s the city’s slogan, thanks to a contest by the city fathers, who, in 1925, awarded Wilbur H. Doxsee $10 for his entry, which originally read “By Government Test, Our Climate is Best” and was later shortened. Has a certain ring to it, no?

OK, so maybe Redwood City isn’t on your top 10 list of vacation destinations, but according to the city’s public library Web site, it really, really does have a great climate. A joint research project by the United States and German governments prior to World War I found “Redwood City to be at the center of one of the world’s three best climates. (The other two? The Canary Islands and the Mediterranean Coast of North Africa.) These findings were printed by local newspapers and read by a happy public delighted to discover their climate to be the best by government test.”

Molly Spore-Alhadef, a reference librarian, says Redwood City is still wonderful today. Protected from the Pacific Ocean by a mountain range, it’s not plagued with fog to the same extent as San Francisco 30 miles to the north, with pleasant humidity levels, endless sunshine during the summer, but enough rain to make for great gardening in the fall and winter. “But don’t tell anyone, we don’t want the secret to get out.”

Enough. With all this cheery talk about great climates, another question inevitably arises: Where is the worst climate in the world? While no Web sites could be found, there are plenty of possibilities, from Antarctica to Newfoundland to the top of Mount Washington in New Hampshire.

Nonetheless, Mr. Cornish of Penn State believes he has the top candidate: Lima, Peru.

“It’s overcast all year-round, but it hardly ever rains, so nothing ever grows there. The sea is cold and forbidding. The Andes mountains surround it, but they’re sand or dirt-colored because of the lack of vegetation. And it’s in a bowl, so the air quality is really poor.”

Redwood City, here we come!

20060709Wap climate 230

Kent Gilbert, Associated Press
Tourists lie on the beach at Manuel Antonio National Park in Costa Rica’s Pacific coast. The Central American nation’s climate is among the world’s most pleasant.
Click photo for larger image.

Read more: http://www.post-gazette.com/stories/sectionfront/life/wheres-the-most-perfect-climate-441303/#ixzz28ytNZVPW

  I want you to think how many times in the last several weeks you were told that the violence that took the lives of a US Ambassador and three others in Benghazi Libya, was a result of a reaction to a 14 – 15 minute anti-Muslim film that appeared on YouTube.

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A couple weeks ago I said that was absolute nonsense. That somehow we were being told (this was perpetrated just by coincidence on the anniversary of September 11) that this so-called “spontaneous demonstration” included people with rocket launchers! I actually got some very negative e-mails on that I might add.

Well now we know. Last Friday the director of national intelligence, James Clapper,  issued an unusual statement and said how the picture that intelligence agencies presented to US policymakers “had evolved” to an acknowledgement that the attacks were “deliberate, organized, and carried out by extremists”. Another senior official said “we faced a coordinated military style assault. We’ve never seen that kind of attack before”.

Yet at every step of the way we were given another story.

By now it is clear by the admissions of the Department of Defense and the Intelligence Community that within two hours of the attack they were told the suspicion was it was Al-Qaeda related. I just find this astounding! That we had the no talk of this coming out of the Administration or the United States UN Ambassador? Its absolutely outrageous!

There are so many examples of them saying this was an attack that was in response to this anti-Muslim video, and yet Reuters on September 12 cited US government officials saying that the attacks may have been planned and organized in advance. Thats the day AFTER they said they were planned and organized in advance! That members of a group called Ansar Al-Sharia and AQIM would’ve been involved, yet we never got an inkling of that. The talking point was it was spontaneous, that it was in response to this video. It was absolute nonsense then. and now it has been specifically verified.

That is going to be in the small list of qualifiers for spin of the year, in misleading the public in the year. Why? Because it reflects that the US policy in the Mideast has certainly not worked to quell the anti-Western sentiment there.

That’s my Goofy!

As soon as ex-General Electric CEO Jack Welch fired off a tweet questioning today’s just released jobs numbers – “Unbelievable ..these Chicago guys will do anything..can’t debate so change the numbers” the media went into a frenzy talking about how “conservatives” were launching conspiracy theories. Well, that’s handy for the media and the Obama campaign, but it’s not just “conservatives” who are confused by a full 0.3% drop in unemployment when only 114k jobs were created.

…. read more HERE

Update @ 3pm PST:

Ex-GE chief Welch leads ‘fraud’ fury over jobs data – 

It took just milliseconds for the conspiracy theories to surface. Moments after the US Labor Department announced that the US jobless rate had fallen sharply to 7.8 percent — a very favorable number for President Barack Obama — the financial website Zerohedge tweeted: “Total data manipulation. Such a farce.”

Florida Republican congressmen Allen West: “I agree with former GE CEO Jack Welch, Chicago style politics is at work here.”

— Radio talk show host Laura Ingraham: “Jobs #s from Labor Secretary Hilda Solis are total pro-Obama propaganda.”

The White House quickly went on the defensive. Solis, who oversees the Bureau of Labor Statistics which produces the data, said she was “insulted” by Welch and the others

……read full story HERE

“These numbers are so suspect, even MSNBC can’t swallow them.” (video 1:12)

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Do Western central banks have any gold left?

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We’re not talking about conspiracy here, however, we are talking about stupidity

by Eric Sprott & David Baker

Somewhere deep in the bowels of the world’s Western central banks lie vaults holding gargantuan piles of physical gold bars… or at least that’s what they all claim. The gold bars are part of their respective foreign currency reserves, which include all the usual fiat currencies like the dollar, the pound, the yen and the euro.
 

Collectively, the governments/central banks of the United States, United Kingdom, Japan, Switzerland, eurozone and the International Monetary Fund (IMF) are believed to hold an impressive 23,349 tonnes of gold in their respective reserves, representing more than $1.3 trillion at today’s gold price. Beyond the suggested tonnage, however, very little is actually known about the gold that makes up this massive stockpile. Western central banks disclose next to nothing about where it’s stored, in what form, or how much of the gold reserves are utilized for other purposes. We are assured that it’s all there, of course, but little effort has ever been made by the central banks to provide any details beyond the arbitrary references in their various financial reserve reports.
 

Twelve years ago, few would have cared what central banks did with their gold. Gold had suffered a 20-year bear cycle and didn’t engender much excitement at $255 per ounce. It made perfect sense for Western governments to lend out (or in the case of Canada – outright sell) their gold reserves in order to generate some interest income from their holdings. And that’s exactly what many central banks did from the late 1980s through to the late 2000s. The times have changed, however, and today it absolutely does matter what they’re doing with their reserves, and where the reserves are actually held. Why? Because the countries in question are now all grossly over-indebted and printing their respective currencies with reckless abandon. It would be reassuring to know that they still have some of the ‘barbarous relic’ kicking around, collecting dust, just in case their experiment with collusive monetary accommodation doesn’t work out as planned.
 

You may be interested to know that central bank gold sales were actually the crux of the original investment thesis that first got us interested in the gold space back in 2000. We were introduced to it through the work of Frank Veneroso, who published an outstanding report on the gold market in 1998 aptly titled, “The 1998 Gold Book Annual.” In it, Mr. Veneroso inferred that central bank gold sales had artificially suppressed the full extent of gold demand to the tune of approximately 1,600 tonnes per year (in an approximately 4,000 tonne market of annual supply). Of the 35,000 tonnes that the central banks were officially stated to own at the time, Mr. Veneroso estimated that they were already down to 18,000 tonnes of actual physical. Once the central banks ran out of gold to sell, he surmised, the gold market would be poised for a powerful bull market… and he turned out to be completely right – although central banks did continue to be net sellers of gold for many years to come.
 

As the gold bull market developed throughout the 2000s, central banks didn’t become net buyers of physical gold until 2009, which coincided with gold’s final break-out above US$1,000 per ounce. The entirety of this buying was performed by central banks in the non-Western world, however, by countries like Russia, Turkey, Kazakhstan, Ukraine and the Philippines… and they have continued buying gold ever since. According to Thomson Reuters GFMS, a precious metals research agency, non-Western central banks purchased 457 tonnes of gold in 2011, and are expected to purchase another 493 tonnes of gold this year as they expand their reserves.1 Our estimates suggest they will likely purchase even more than that.2 The Western central banks, meanwhile, have essentially remained silent on the topic of gold, and have not publicly disclosed any sales or purchases of gold at all over the past three years. Although there is a “Central Bank Gold Agreement” currently in place that covers the gold sales of the Eurosystem central banks, Sweden and Switzerland, there has been no mention of gold sales by the very entities that are purported to own the largest stockpiles of the precious metal.3 The silence is telling.
 

Over the past several years, we’ve collected data on physical demand for gold as it has developed over time. The consistent annual growth in demand for physical gold bullion has increasingly puzzled us with regard to supply. Global annual gold mine supply ex Russia and China (who do not export domestic production) is actually lower than it was in year 2000, and ever since the IMF announced the completion of its sale of 403 tonnes of gold in December 2010, there hasn’t been any large, publicly-disclosed seller of physical gold in the market for almost two years.4 Given the significant increase in physical demand that we’ve seen over the past decade, particularly from buyers in Asia, it suffices to say that we cannot identify where all the gold is coming from to supply it… but it has to be coming from somewhere.
 

To give you a sense of how much the demand for physical gold has increased over the past decade, we’ve listed a select number of physical gold buyers and calculated their net change in annual demand in tonnes from 2000 to 2012 (see Chart A).

ES1

As can be seen, the mere combination of only five separate sources of demand results in a 2,268 tonne net change in physical demand for gold over the past 12 years – meaning that there is roughly 2,268 tonnes of new annual demand today that didn’t exist 12 years ago. According to the CPM Group, one of the main purveyors of gold statistics, the total annual gold supply is estimated to be roughly 3,700 tonnes of gold this year. Of that, the World Gold Council estimates that only 2,687 tonnes are expected to come from actual mine production, while the rest is attributed to recycled scrap gold, mainly from old jewelry.5 (See footnote 5). The reporting agencies have a tendency to insist that total physical demand perfectly matches physical supply every year, and use the “Net Private Investment” as a plug to shore up the difference between the demand they attribute to industry, jewelry and ‘official transactions’ by central banks versus their annual supply estimate (which is relatively verifiable). Their “Net Private Investment” figures are implied, however, and do not measure the actual investment demand purchases that take place every year. If more accurate data was ever incorporated into their market summary for demand, it would reveal a huge discrepancy, with the demand side vastly exceeding their estimation of annual supply. In fact, we know it would exceed it based purely on China’s Hong Kong gold imports, which are now up to 458 tonnes year-to-date as of July, representing a 367% increase over its purchases during the same period last year. If the imports continue at their current rate, China will reach 785 tonnes of gold imports by year-end. That’s 785 tonnes in a market that’s only expected to produce roughly 2,700 tonnes of mine supply, and that’s just one buyer.
 

Then there are all the private buyers whose purchases go unreported and unacknowledged, like that of Greenlight Capital, the hedge fund managed by David Einhorn, that is reported to have purchased $500 million worth of physical gold starting in 2009. Or the $1 billion of physical gold purchased by the University of Texas Investment Management Co. in April 2011… or the myriad of other private investors (like Saudi Sheiks, Russian billionaires, this writer, probably many of our readers, etc.) who have purchased physical gold for their accounts over the past decade. None of these private purchases are ever considered in the research agencies’ summaries for investment demand, and yet these are real purchases of physical gold, not ETFs or gold ‘certificates’. They require real, physical gold bars to be delivered to the buyer. So once we acknowledge how big the discrepancy is between the actual true level of physical gold demand versus the annual “supply,” the obvious questions present themselves: who are the sellers delivering the gold to match the enormous increase in physical demand? What entities are releasing physical gold onto the market without reporting it? Where is all the gold coming from?
 

There is only one possible candidate: the Western central banks. It may very well be that a large portion of physical gold currently flowing to new buyers is actually coming from the Western central banks themselves. They are the only holders of physical gold who are capable of supplying gold in a quantity and manner that cannot be readily tracked. They are also the very entities whose actions have driven investors back into gold in the first place. Gold is, after all, a hedge against their collective irresponsibility – and they have showcased their capacity in that regard quite enthusiastically over the past decade, especially since 2008.
 

If the Western central banks are indeed leasing out their physical reserves, they would not actually have to disclose the specific amounts of gold that leave their respective vaults. According to a document on the European Central Bank’s (ECB) website regarding the statistical treatment of the Eurosystem’s International Reserves, current reporting guidelines do not require central banks to differentiate between gold owned outright versus gold lent out or swapped with another party. The document states that, “reversible transactions in gold do not have any effect on the level of monetary gold regardless of the type of transaction (i.e. gold swaps, repos, deposits or loans), in line with the recommendations contained in the IMF guidelines.”6 (Emphasis theirs). Under current reporting guidelines, therefore, central banks are permitted to continue carrying the entry of physical gold on their balance sheet even if they’ve swapped it or lent it out entirely. You can see this in the way Western central banks refer to their gold reserves. The UK Government, for example, refers to its gold allocation as, “Gold (incl. gold swapped or on loan).” That’s the verbatim phrase they use in their official statement. Same goes for the U.S. Treasury and the ECB, which report their gold holdings as “Gold (including gold deposits and, if appropriate, gold swapped)” and “Gold (including gold deposits and gold swapped),” respectively (see Chart B). Unfortunately, that’s as far as their description goes, as each institution does not break down what percentage of their stated gold reserves are held in physical, versus what percentage has been loaned out or swapped for something else. The fact that they do not differentiate between the two is astounding, (Ed. As is the “including gold deposits” verbiage that they use – what else is “gold” supposed to refer to?) but at the same time not at all surprising. It would not lend much credence to central bank credibility if they admitted they were leasing their gold reserves to ‘bullion bank’ intermediaries who were then turning around and selling their gold to China, for example. But the numbers strongly suggest that that is exactly what has happened. The central banks’ gold is likely gone, and the bullion banks that sold it have no realistic chance of getting it back.

ES2

Our analysis of the physical gold market shows that central banks have most likely been a massive unreported supplier of physical gold, and strongly implies that their gold reserves are negligible today. If Frank Veneroso’s conclusions were even close to accurate back in 1998 (and we believe they were), when coupled with the 2,300 tonne net change in annual demand we can easily identify above, it can only lead to the conclusion that a large portion of the Western central banks’ stated 23,000 tonnes of gold reserves are merely a paper entry on their balance sheets – completely un-backed by anything tangible other than an IOU from whatever counterparty leased it from them in years past. At this stage of the game, we don’t believe these central banks will be able to get their gold back without extreme difficulty, especially if it turns out the gold has left their countries entirely. We can also only wonder how much gold within the central bank system has been ‘rehypothecated’ in the process, since the central banks in question seem so reluctant to divulge any meaningful details on their reserves in a way that would shed light on the various “swaps” and “loans” they imply to be participating in. We might also suggest that if a proper audit of Western central bank gold reserves was ever launched, as per Ron Paul’s recent proposal to audit the U.S. Federal Reserve, the proverbial cat would be let out of the bag – with explosive implications for the gold price.
 

Notwithstanding the recent conversions of PIMCO’s Bill Gross, Bridegwater’s Ray Dalio and Ned Davis Research to gold, we realize that many mainstream institutional investors still continue to struggle with the topic. We also realize that some readers may scoff at any analysis of the gold market that hints at “conspiracy.” We’re not talking about conspiracy here, however, we’re talking about stupidity. After all, Western central banks are probably under the impression that the gold they’ve swapped and/or lent out is still legally theirs, which technically it may be. But if what we are proposing turns out to be true, and those reserves are not physically theirs; not physically in their possession… then all bets are off regarding the future of our monetary system. As a general rule of common sense, when one embarks on an unlimited quantitative easing program targeted at the employment rate (see QE3), one had better make sure to have something in the vault as backup in case the ‘unlimited’ part actually ends up really meaning unlimited. We hope that it does not, for the sake of our monetary system, but given our analysis of the physical gold market, we’ll stick with our gold bars and take comfort as they collect more dust in our vaults, untouched.

ABOUT THE AUTHOR

Eric Sprott is CEO and founder of Sprott Asset Management LP 

 

http://www.bloomberg.com/news/2012-09-04/central-bank-gold-buying-seen-reaching-493-tons-in-2012-by-gfms.html

2 See notes in Chart A.
 

http://www.gold.org/government_affairs/reserve_asset_management/central_bank_gold_agreements/

http://www.imf.org/external/np/exr/faq/goldfaqs.htm

5 Mine supply estimate supplied by World Gold Council; YTD gold mine production data suggests that total 2012 gold mine supply will come in lower around 2,300 tonnes, ex Russia and China production. In addition, Frank Veneroso has recently published a new report that warns that the supply of recycled scrap gold could drop significantly going forward due to the depletion of the inventories of industrial scrap and long held jewelry over the past decade.
 

http://www.ecb.int/pub/pdf/other/statintreservesen.pdf

 
 
ABOUT THE AUTHOR
Eric Sprott & David Baker

Eric Sprott is CEO and founder of Sprott Asset Management LP 

Read more at http://www.stockhouse.com/columnists/2012/oct/3/do-western-central-banks-have-any-gold-left-#VBLcl2E83G6zO57k.99

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