John Kaiser writes:
When the Tea Party started bellowing about "death panels", they had in mind the retiree who dies while waiting for treatment
aka
Canada
where we have waiting times
for non life threatening surgery.
In the US a hospital visit will cost money if you do not have insurance
and for sure; we use the unimaginable number of 50,000,000,
people will have to pay or at least borrow to pay.
Say a family has 4500 dollars
and the surgery cost 10,000.
i think they’ll do the surgery
then chase the person while he’s alive.
if you don’t have good medical insurance
your life is cheap in the eyes of capitalism…
the logic and
why it is dangerous for health care…
to be for profit
poor people do not have money
capitalism likes money
i.e. poor people are not good consumers
it has come to this…
the rich deserve the best treatment like memorably the slave owners…
more logic…
some one must get exploited…
i must make money on the back of some one else
ala Ann Rand
who famously said
if we don’t control them
with money then it will be by violence
doctors should be required to volunteer
…for their country
it would look good for the profession.
Question
if you have the knowledge
to save some ones life
do you have a moral obligation
or is it on a can pay basis?
that would never happen
in a bar or on the farm
or with a neighbor
a friend or co-worker
in Canada
thank goodness for Tommy Douglas
the emphasis is on the quality of care,
regardless of income…
a common humanity,
a subjectivity
there is no price on human life.
quantifisized
financialisized
numericalisized
l
logical
those who don’t require
emergency surgery
can pay to jump the queue.
I
in the US while people reshape noses
a person in a third world,
second world,
and first world
will be left to die
because of money.
the line between the worlds is getting blurry
in the UK
600,000 people under the age of twenty five
have never worked…they call them neets
and they are rioting…a neglected generation
The rest is a direct quote from the
Bottom Fish Newsletter.
“It is this full-fledged entitlement expectation which is at the heart of the potential for Medicare expenses to skyrocket as the boomers age, a trend that barring an extraordinary economic boom, tax revenue increases cannot hope to cover. Medicare is the elephant in the room; can its throat be slit without anybody noticing?
It's too late for that, and the Tea Party seems to be stuck with the knife in its hand while the rest of the voters watch.
In a sense Obama was not the only politician to be bloodied by the debt ceiling crisis; the Tea Party has been lured into going beyond vague "big government" complaints or inconsequential cut targets.
Once they show their hand they will be abandoned by mainstream Republicans who will trot out a candidate with a vision that includes revenues and cuts, one capable of beating the Great Disappointment
if he is given a chance to run for a second term.
As the "flash crash" continues to erode the net worth of households, particularly those who were counting on using the extended tax cut to cash in some capital gains, the mood will shift from childish power politics to
old-fashioned pragmatism based on the exceptionalist notion that what's good for everybody is probably even better for me”.
Bottom-Fish Recommendations made from July 24, 2011 to August 6, 2011
BE Resources Inc (BER-V)
21,011,500
$0.390
$0.090
$0.095
($0.655)
Rare Element Resources Ltd (RES-T)
1,128,100
$11.130
$8.410
$8.820
($1.700)
Good Relative Spec Value Buy
Special Interest Comment - July 25, 2011: BE confirms reported results were too good to be true
On Monday July 25 BE Resources was halted prior to the market open "pending clarification" of the Friday July 22 rare earth assay results from drilling on its Warm Springs project that saw the stock move up $0.67 to close at $0.74. As we cautioned in our comment on BE published over the weekend of July 23-34, several aspects of the news had a problematic ring, and our reservations were in part confirmed in today's update that was published, after the stock remained halted all day, only after the market closed. While the revision did not provide any more detailed explanation for how errors were made other than to acknowledge "mathematical errors that occurred in the process of totalling a large volume of the assay results of 15 individual rare earth elements into total rare earth oxides," the company made some effort to distance themselves from the mistakes by mentioning how "totalled TREO values were calculated by an independent consulting geologist."
In terms of the revised grades themselves, there appears to be no exact relationships with the original grades, except to note that the revised grades were generally lower. Of the nine reported intersections, two low-grade intersections from hole DH3 remained unchanged, at 1.89% and 0.26% TREO. Several others intersections from hole DH3 appear to have had the decimal point off by one position, with revised grades all moving lower in a predicatable manner, from 9.12% to 0.91%, from 19.58% to 1.95%, and 7.80% to 0.78%. Finally four lowered intersections appear to have no discernable relation to the initially reported grades, such as the intercept in DH1 which moved from 8.85% to 0.69%, or DH2, which moved from 10.34% to 1.56%. DH19 also reported two randomly revised intercepts, from 15.04% to 0.97% and 1.2% to 0.09%. While the revisions referred to overall grades, no indication was given as to whether the reported light/heavy breakdowns remain valid as originally published.
So far no indication has been given relative to when the stock will resume trading. When the stock does resume however one can assume that Friday's gains will be an unfortunate memory, particularly for the buyers of the 31 million shares that traded on the venture exchange that day. Our earlier comment on the stock suggested readers exercise caution and to avoid the stock given the numerous uncertainties regarding the nature of the reported intercepts and of the overall project itself. We continue to maintain that counsel, for while the latest news release did revise the grades, no effort was made to address the other issues we noted, such as geological context, publishing a complete drill plan map, or an explanation for why there was no mention of beryllium in the assays from this project that was originally a beryllium project. While it is true that some of the intercepts remain intriguing even in revised form, particularly two from hole DH3 which report, post-revisons, 98 and 32 feet of 1.95% and 1.89% TREO, with 39% and 32% heavies, respectively, we feel there remains enough uncertainty regarding the overall situation of the company that steering clear of this stock even at lower prices remains, for now, the most prudent course. --BD
JK note: IIROC, the Investment Industry Regulatory Organization of Canada, cancelled all 10,663 trades representing volume of 49,324,463 shares through the TSXV and the various parallel trading platforms whose primary purpose seems to be to create aribitrage opportunities for brokers and traders as well as extra minimum commissions by fragmenting an order across multiple platforms, and to restore an uneven playing field for ordinary investors who had grown accustomed to using the market depth of the TSXV order book to assess liquidity conditions. The IIROC news release gave no indication that it is mounting an investigation to explain the news release mistakes, whose corrections had to be corrected again the following day. One imagines, however, that some traders who thought they had made money trading BE and reinvested it elsewhere may very well turn to the courts to seek redress for any losses suffered as a result of this arbitrary decision to cancel profitable trades. They would probably base their case on the argument that the TSX/TSXV and Canadian investment banking establishment have gone out of their way to facilitate the destruction of fundamentals based price discovery in order to accommodate high-frequency trading by both humans and programs, and consequently an arithmetic boo-boo in a news is hardly sufficient reason to cancel trades, much as a $2 trillion boo-boo by S&P was hardly a reason not to proceed with downgrading US debt from AAA to AA+ and expelling the United States from a club of AAA nations dominated by universal healthcare providers.
You may also note that in our BE chart above it shows only 31,253,500 shares trading for July 22. The TSXV trading data most people see does not include any trades not conducted through the TSX/TSXV itself, which results in a false portrait of actual volumes. The availability of these parallel trading platforms also makes it easier for fund managers to arrange trades with their pals tjhat stuff toxic waste into their accounts or shuffle toxic waste elsewhere. Anybody who claims that the existence of parallel order books and execution systems that are not consolidated and visible to everybody with an automatic first come first serve execution priority is anything but bad for market integrity and liquidity is either monstrously stupid or an outright criminal. Furthermore, why the TSXV would allow a direct interface between its order execution system and algorithmic trading programs for a stock exchange specializing in venture capital listings which struggle to get potential speculators to visualize the sought-after outcome of the venture and what it might be worth if achieved, and allow fee-less trading by these technical trading machines which make no effort to borrow paper when shorting on a down-tick, while punishing human investors who have actually thought about the listing's fundamental success potential with comparatively high fees, defies comprehension except perhaps as a demonstration of "penny wise pound foolish".
Rare Element Resources Ltd (RES-T: $9.29)
Rare Element Resources Ltd did not pick a particularly good day on August 4, 2011 to release news that may have major implications for the urgency with which its 100% owned Bear Lodge rare earth project gets developed. But if the turmoil in general markets does escalate during the next week or so, spec value hunters should consider some bargain hunting on the premise that Rare Element has discovered a new zone of heavy rare earth enriched mineralization at Bear Lodge. Rare Element announced results for several RC holes Newmont had drilled on gold targets to the northwest and southwest of the Whitetail Ridge and Bull Hill rare earth zones but never assayed for rare earth elements, which was understandable given that the deal did not entitle Newmont to any rare earth credits (Newmont has since dropped out). The gold story so far has been a low grade dud while the Bull Hill rare earth deposit on which Rare Element is conducting a prefeasibility study is the basis for the junior's valuation. A Rare Element geologist called Allen Andersen noted what appeared to be rare earth mineralization similar to the FMR dykes at Bull Hill, so the junior had the left over chips assayed. The Carbon zone yielded 30 ft of 4.69% TREO and the East Taylor yielded 55 ft of 3.38% TREO and 55 ft of 7.84% TREO within the interval 45-160 ft.
These grades are similar to what Bull Hill has yielded, but have a substantially higher proportion of the heavy rare earths.The chart above shows the distribution of rare earths from Bull Hill if the recovery for the 10,300 tonnes per annum Rare Element hopes to produce is uniform, while the chart below shows how this translates into output tonnage and its value at FOB and domestic spot REO prices as of August 4, 2011.
The percentage of heavy rare earth oxides is only 3.2%, which would generate only 333 tonnes of heavies at the proposed operating rate of 907 tpd, though that is more than the 204 tonnes Molycorp will be able to squeak out of Mountain Pass annually at its full capacity of 2,200 tpd thanks to its 0.5% HREO proportion. What has hurt the market's perception of Rare Element is that it is lower grade than Mountain Pass, and will, like Mountain Pass, produce primarily light rare earths. That has pretty much ruled out Rare Element as an acquisition target for Molycorp, and pretty much by anybody because of the perception that by 2015 the world will be amply supplied by light rare earths. Rare Element has thus been moving quickly to develop Bear Lodge as a standalone project, which has helped attract a very heavy short position that now stands at 8,975,000 shares which is about 19% of the 46.8 million shares fully diluted.
The East Taylor and Carbon zones have the potential to create a massive short squeeze because they are both fairly high grade but have significantly higher percentages of heavy rare earths than the synchisite and parisite dominated Bull Hill zone. Mineralogical work by Tony Mariano indicates that the phosphate monazite may be a significant portion of the overall rare earth mineralization and is the likely host for the heavy rare earths. Synchisite and parisite are members of the bastnaesite family which generally has a very low proportion of heavy rare earths. Mountain Pass is primarily bastnaesite, though monazite zones are present in the vicinity of the main deposit. Molycorp has in the past expressed optimism about finding and developing monazite zones, but the word is that such zones rarely exceed 2% TREO. If Molycorp plans to achieve its 40,000 tpa output of rare earth oxides, it needs to stick to its 7%-9% TREO bastnaesite ore unless it is prepared to go to the regulators to permit a higher mining rate than the 2,200 tpd for which Mountain Pass is already permitted.
Rare Element has reported the two intervals in hole SUN 090 into the East Taylor zone as 110 ft averaging 5.61% TREO, with the upper 55 ft running 3.38% and the lower 55 ft 7.94%. The zone has been described as having a 250 m strike and width of 75 m, and still open toward the east. This hole also ran 1.3 g/t gold. Rare Element provided a breakdown of individual grades for all of the rare earths except the sequence holmium-erbium-thulium-ytterbium-lutetium. The company's reasons for excluding these included that they are insignificant relative to the rest and generally lack meaningful markets, though this is not the case for erbium. But when I added up the individual reported grades for the East Taylor hole I was stunned to see the grade was only 5.225% TREO compared to the 5.61% TREO reported by the company. That left 0.385% attributable to the excluded heavies, which was substantially higher than the zero left out of the 3.77% TREO grade for the Bull Hill indicated resource of 4,450,000 tonnes, the 0.02% excluded from the inferred Whitetail Ridge resource of 1.5 million tonnes of 3.24% TREO, or the 0.04% excluded from the 30 ft interval of 4.69% TREO at Carbon.
The 5.225% East Taylor interval has 12.75% heavy rare earths, jumping to 18.7% when we add in the missing 0.385% heavies bringing the total grade to 5.61% TREO. The basket prices for the 5.225% rock using Metal-Pages prices as of August 4, 2011 were $321/kg for FOB spot, $151/kg for domestic spot, $56/kg for 3 year FOB average, and $28/kg at 3 year domestic average. In rock value terms on a 100% recoverable basis this works out to $17,773/t at FOB spot, $7,893/t at domestic spot, $2,929/t at 3 year FOB and $1,444/t at 3 year domestic prices. The Carbon interval of 4.65% TREO has 10.65% heavies, jumping to 11.41% if we include the heavies for which individual grades are missing, bringing the grade to 4.69% TREO. The Whitetail Ridge inferred resource of 3.22% has 8.68% heavies, jumping to 9.25% heavies if we add in the 0.02% represented by the missing individual grades. The rock value of the Whitetail Ridge resource is $10,196/t at FOB spot and $4,811/t at domestic spot.
Conclusion: There is clearly a mineralogical shift happening in the rare earth zones toward the west of the Bull Hill zone on which prior work has focused and on which metallurgical work is underway, and this shift points to higher heavy rare earth content without a sacrifice of grade as happens at Mountain Pass. Rare Element is conducting core drilling at East Taylor which will include a twin hole to confirm the RC hole results. The company has yet to provide us with an assay interval spreadsheet which will allow us to determine the continuity and consistency of both TREO grade and HREO proportion. As the news release is now presented it suggests a continuous zone of heavy rare earth enriched mineralization, but we need to confirm this as has been done at Quest's BZone, Commerce's Eldor and Geomega's Montviel projects where management did provide the spreadsheets. We also do not know the true width of the zone even though management says the zone is 75 metres wide. The company believes it will have assay results by the end of September. If Rare Element confirms that it has a tonnage footprint of 5-10 million tonnes running 3%-6% TREO and 10%-20% heavy rare earths, the project will become of immediate interest to Molycorp, Neo Material, and end users seeking a full spectrum supply of rare earths in a secure jurisdiction. This could throw a serious wrench into the hopes of the shorts that a washout created by volatility in general markets will provide a profitable covering window. Their efforts to cover could collide with the arrival of a new audience attracted by the possibility that Rare Element has gone from a standalone supply contender to a buyout candidate. We still need drill results to confirm this story, but Whitetail Ridge is already partly there, and both East Taylor and Carbon have the footprint to take the story the rest of the way. Does this have negative implications for lower grade projects with high heavy percentages such as Quest's Strange Lake project? I do not think it has negative implications for full spectrum projects such as Strange Lake which have large, open pittable, medium grade deposits in supportive and secure jurisdictions such as Quebec which will be of interest to end-users seeking a major long term supply solution, but it does have negative implications for low grade, small tonnage underground operations with complex mineralogy located in jurisdictions where receiving permission to conduct helicopter supported exploration generates a news release declaring that such event shaved one or more years from the development timeline. Rare Element has traded as high as $17.85 since our bottom-fish buy recommendation at $0.30-$0.49 on December 24, 2008, and initial good relative spec value buy at $2.98 on May 12, 2010. Rare earth mania has reached a stage where only a dozen or so contenders merit serious attention and Rare Element is one of them. The overall market situation is very uncertain in the wake of the debt ceiling fiasco, but the large short position on a company that has genuine fundamentals that are improving substantially will mute the downside pressure from panic selling. Spec Value Hunters should look at Rare Element as a trading opportunity between now and further confirmation that the story has shifted into a heavy rare earth gear.
Rhyolite Resources Ltd (RYE-V)
175,800
$0.485
$0.445
$0.485
10%
New BF LP Buy $0.10-$0.19
NMC Resource Corp (NRC-V)
16,300
$0.590
$0.500
$0.550
10%
New BF MP Buy $1.01-$1.25
Pacific Iron Ore Corp (POC-V)
91,300
$0.245
$0.220
$0.220
10%
New BF LP Buy $0.30-$0.49
Argus Metals Corp (AML-V)
991,900
$0.190
$0.140
$0.175
9%
New BF MP Buy $0.10-$0.19
Lion One Metals Ltd (LIO-V)
554,100
$1.400
$1.150
$1.250
6%
New BF LP Buy $0.30-$0.49
Olivut Resources Ltd (OLV-V)
823,200
$2.030
$1.650
$1.780
5%
New BF Spec Cycle Hold 100%
Top 10 Bottom-Fish Price Losers
Company
Volume
High
Low
Close
Chg
Status
Avalon Rare Metals Inc (AVL-T)
9,118,200
$6.510
$3.990
$4.250
($1.940)
Good Absolute Spec Value Buy
Rare Element Resources Ltd (RES-T)
1,128,100
$11.130
$8.410
$8.820
($1.700)
Good Relative Spec Value Buy
Quest Rare Minerals Ltd (QRM-V)
2,480,000
$5.910
$4.000
$4.250
($1.540)
Good Relative Spec Value Buy
Verde Potash PLC (NPK-V)
537,800
$7.980
$6.060
$6.700
($1.250)
Good Absolute Spec Value Buy
Sabina Gold & Silver Corp (SBB-T)
3,266,200
$6.130
$4.900
$4.940
($1.100)
BF TP Buy $0.30-$0.49
Strategic Metals Ltd (SMD-V)
1,870,500
$4.100
$2.700
$3.000
($1.080)
BF MP Buy $0.10-$0.19
Nevsun Resources Ltd (NSU-T)
2,668,300
$6.190
$4.910
$5.150
($0.900)
BF Spec Cycle Hold 100%
Almaden Minerals Ltd (AMM-T)
841,900
$3.740
$2.880
$3.000
($0.710)
New BF Spec Cycle Hold 100%
Uranerz Energy Corp (URZ-T)
743,500
$3.040
$1.940
$2.380
($0.700)
BF MP Buy $0.50-$0.75
Champion Minerals Inc (CHM-T)
4,033,800
$1.890
$1.250
$1.270
($0.560)
BF MP Buy $0.30-$0.49
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