A report issued by the US Joint Forces Command says that by 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day. "While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions, push fragile and failing states further down the path toward collapse, and perhaps have serious economic impact on both China and India," said General James Mattis
When SEC charged Goldman Sachs with fraud, gold declined very sharply from $1,160 to $1,130. Why? Because Paulson & Co, which made billions of dollars in shorting the subprime market in 2008, was being implicated in the Goldman case and Paulson happens to be the biggest investor in gold now. Whether this is a temporary dip or something bigger, time will tell.