All You Need to Know About Bank Balance-Sheet Fraud


Part Two Of Jim’s King World News Interview Released



In The News Today Posted: Mar 11 2010 By: Jim Sinclair Post Edited: March 11, 2010 at 2:59 pm
Filed under: In The News
Jim Sinclair’s Commentary

Few understand that hyperinflation has already occurred in the bailouts and gifts to the financial industry, and the result of this hyperinflation are coming towards us like a freight train.
Maybe you should send this to those that are lost in semantics and therefore will be lost period.

Bernanke’s Dilemma: Hyperinflation and the U.S. Dollar March 10, 2010 Ron Hera

Ben Bernanke, Chairman of the US Federal Reserve, faces a Sisyphean task because US banks are experiencing debt deflation and, because lending is now at much lower levels, monetary deflation is encumbering the domestic US economy as existing debts continue to be serviced. Government deficit spending can only offset lower consumer spending to a degree, and the mushrooming debt of the US government raises the question of whether the US can repay or roll over its debt obligations, given that tax receipts are likely to fall.
Despite deflationary pressure, the value of the US dollar is in a downtrend trend pointing to higher prices for imported goods and energy. Devaluing the US dollar will reduce the value of debts in real terms, thus it can make debt levels sustainable, but higher prices will exacerbate debt defaults, worsening the condition of US banks. Mr. Bernanke’s dilemma is how to salvage the balance sheets of US banks without sparking high inflation or unleashing hyperinflation.
Where the US dollar is concerned, opinions on hyperinflation range from the view that hyperinflation of the world reserve currency is impossible in principle (because, for example, the values of other currencies are linked to that of the US dollar), to the view that hyperinflation of the US dollar has already happened and that all that remains are the consequences.
The two most widely accepted theories of hyperinflation are the monetary model, where a positive feedback cycle is caused by a disproportionate increase in the velocity of money as a consequence of increasing the money supply too quickly, and the confidence model, where the monetary authority issuing a given currency is perceived to be insolvent or no longer legitimate.
The view that hyperinflation is the inevitable result of a central bank issuing too much money or of a government taking on too much debt, while correct, both states the obvious and presupposes that some previously known or predictable limit is reached. The ability to service debt is one such measure, but the value of a debt in real terms depends on the value of the currency.
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Jim Sinclair’s Commentary

Is there any question about that having occurred?

Mess with a Connecticut Yankee and there will be payback.

Connecticut gets moody over false ratings. Connecticut’s attorney general is suing Moody’s (MCO) and S&P (MHP) over their ratings of risky investments. AG Richard Blumenthal claims the firms "violated public trust" by knowingly providing false ratings on investments that subsequently pushed the country into a recession. Blumenthal is seeking penalties and fines that could total hundreds of millions of dollars.
Jim Sinclair’s Commentary
Knowing the efficiency of government management of financial entities, can you imagine how many seniors that do not owe anything on loans will find the social security check garnered or non-existent?
Defaulted Loans May Haunt Seniors by Ellen E. Schultz Monday, March 8, 2010
A little–noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by "offsetting," or withholding Social Security and disability payments.
The Treasury currently withholds benefits of 3.1 million Social Security recipients to recover defaulted student–, farm– and small–business loans, unpaid income taxes, amounts veterans owe for health care, and other debts to the government.
Previously, the U.S. hasn’t been able to withhold Social Security payments to recover most debts delinquent for more than ten years.
But a provision in the 2008 Farm Bill lifted the ten–year statute of limitations on the government’s ability to withhold Social Security benefits in collecting debts other than student loans—for which the statute of limitations was lifted in 1997—and income taxes, where the limit remains 10 years.
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Jim Sinclair’s Commentary

The snowball is rolling down hill and will obliterate December’s promised Jobless Economic Recovery.

Big ax looming at the FDNY: Threat of 1,000 layoffs, closing of 62 fire companies
BY Jonathan Lemire DAILY NEWS STAFF WRITER Thursday, March 11th 2010, 4:00 AM

The FDNY is bracing for doomsday.
The department will be forced to close a staggering 62 fire companies and lay off more than 1,000 firefighters if the bad-news state budget becomes reality, Commissioner Salvatore Cassano told the City Council Wednesday.
"We would be very, very taxed," warned a grim-faced Cassano. "Our operations would be impacted and every neighborhood in this city would feel the effect."
Even if lawmakers in Albany – already facing an April 1 deadline and a $9 billion budget gap – find a way to pump in more cash, the city’s fiscal woes may still force the FDNY to shutter 20 companies, Cassano warned.
"We’re going to try not to close a single company or a single firehouse," Cassano told the Fire and Criminal Justice Services Committee, "but if we have to, we will."
Sixteen fire companies were set to close last year until the Council restored funding for an extra 12 months.
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Jim Sinclair’s Commentary

It would be quite wise to use the resources given here to see if your bank is on the list.

List of banks under stress keeps growing Check the financial health of your financial institution with BankTracker By Bill Dedman updated 5:45 a.m. MT, Wed., March. 10, 2010

The number of banks with risky levels of bad loans rose only slightly in the last quarter of 2009, partly because the FDIC closed so many failing banks, according to federal data analyzed by the Investigative Reporting Workshop at American University in Washington.
Four ways to check your financial institution:

Look up any bank in the BankTracker.
Look up any credit union.
Check the list of the 400 largest banks.
Check the banks with the highest levels of bad loans.

A total of 389 banks had “troubled asset ratios” above 100 at the end of December, up slightly from 369 banks in September, according to the analysis. A ratio above 100 means a bank had more troubled loans than money set aside to cover potential losses.
The FDIC closed 140 failed banks in 2009, including 45 in the fourth quarter alone. Nearly all had very high levels of bad loans.
The new analysis relies on information reported by banks to the Federal Deposit Insurance Corp. as of Dec. 31. Journalists at American University calculated each bank’s troubled asset ratio, which compares troubled loans against the bank’s capital and loan loss reserves.
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Biggest Question for the Next two Months
Chris Laird



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Washington Must Ban U.S. Credit Derivatives as Traders Demand Gold.



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Coming to your area very soon...


Kansas City, Facing Bankruptcy, Closing Half Its Schools




US May Lose Billions on GMAC. Where's Exit Strategy?- Wall Street Journal





Commercial Real Estate Owners Beginning To Walk Away From Properties




Cash-Poor Shoppers Sticking to Basics- Forbes





The F.D.I.C. is BANKRUPT...The government will print them ALL the money they need.


ALL the money printed will cause INFLATION...So to hide this, they will STEAL YOUR pension funds and gamble with it...what could possibly go wrong?


Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash



NY State Gov Has a Bridge to Sell You- Financial Times



Europe Bars Wall Street Banks from Government Bond Sales




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The $21 Billion Hot Potato




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Amazon pulls the plug on online business affiliates in Colorado



SPY Volume Back to 2010 Lows as Equity Mutual Funds Run Out of Cash



New welfare program...If they stop paying...10 million unemployed people will riot...

Jobless Aid Bill Passes Key Senate Hurdle



Strike Paralyzes Greece; Protests Turn Violent

English Town Fills Empty Storefronts with Fake Shops- BBC News

Two news items about Nanny State Britannia: Countryside ban for children because mums cannot read maps and hate mud, and Britain May Force Owners to Microchip Dogs to Curb 'Weapon' Pets.