IMF plots world money issuance without accountability, Rickards tells King
Submitted by cpowell on Thu, 2010-05-13 02:32. Section: Daily Dispatches
10:30p ET Wednesday, May 12, 2010
Dear Friend of GATA and Gold:
James G. Rickards, senior managing director for Virginia-based research firm Omnis Inc., was interviewed for 19 minutes today by Eric King of King World News and remarked that world government is under construction, and it's not the hallucination of the paranoid fringe. Rather, Rickards said, it's being arranged at the International Monetary Fund, whose Special Drawing Rights are being prepared to replace the U.S. dollar as the international reserve currency. While this might terminate the unfair advantages given to the country that issues the reserve currency, Rickards said, it creates other problems: The IMF has no direct accountability to anyone and indeed letting it issue SDRs as a reserve currency would be money creation without any accountability at all.
Rickards expects gold to rise to $2,000 in the near term and $5,000 in the long term.
You can listen to his interview at King World News here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/13_J...



Jim’s Mailbox Posted: May 12 2010 By: Jim Sinclair Post Edited: May 12, 2010 at 6:47 pm
Filed under: Jim's Mailbox
Dear Jim,
Here comes the litigation you warned about years ago. It looks more like fraud than mismanagement and the accounting firms seem to have helped every step of the way (just like Enron and Arthur Anderson). This is going to end badly (and already is). Every book of every corporation in the West is now suspect. My God, what have these people done?
Regards, CIGA Pedro
Former Iceland bank chief hit by $2bn lawsuit By Andrew Ward in Stockholm Published: May 12 2010 14:20 Last updated: May 12 2010 14:20
One of the main figures behind Iceland’s banking boom and bust has been hit by a $2bn lawsuit that accuses him of a “fraud” that contributed to the collapse of Glitnir Bank.
Jón Ásgeir Jóhannesson, the former top shareholder in Glitnir and a big investor in the UK retail sector, is alleged to have conspired with associates to defraud “Glitnir bank in order to prop up their own failing companies”.
The lawsuit, filed by the winding-up board overseeing Glitnir’s liquidation, also targets PwC, the world’s biggest accountancy firm, accusing it of “facilitating” the alleged fraud.
Neither PwC nor Mr Jóhannesson immediately responded to requests for comment.
“There is evidence supporting the allegation that Glitnir Bank was robbed from the inside,” said Steinunn Guðbjartsdóttir, chair of the Glitnir winding-up board in a statement. “Today’s [Wednesday’s] legal action is a positive step aimed at making accountable the small number of people whose intent or negligence contributed significantly to Glitnir’s demise.”
More…

Dear Jim,
These figures are downright scary. With the dollar up as a mirror image of the euro we can anticipate this to get much larger. Gold is the only safety out there.
Regards, CIGA Bill W.
Dear Bill W,
You are absolutely correct.
Jim
U.S. posts 19th straight monthly budget deficit Wed May 12, 2010 3:15pm EDT
(Reuters) – The United States posted an $82.69 billion deficit in April, nearly four times the $20.91 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on Wednesday.
It was more than twice the $40-billion deficit that Wall Street economists surveyed by Reuters had forecast and was striking since April marks the filing deadline for individual income taxes that are the main source of government revenue.
Department officials said that in prior years, there was a surplus during April in 43 out of the past 56 years.
The government has now posted 19 consecutive monthly budget deficits, the longest string of shortfalls on record.
For the first seven months of fiscal 2010, which ends September 30, the cumulative budget deficit totals $799.68 billion, down slightly from $802.3 billion in the comparable period of fiscal 2009.
More…


Jim Sinclair’s Commentary
According to the Formula, California doesn’t have much, if any, chance of meeting its debt requirements.
Today bankruptcy is called rescheduling. Therefore, be prepared for California’s restructuring of its debt, but know what that truly means.
Schwarzenegger Preps ‘Terrible Cuts’ to Close Deficit (Update1) By Michael B. Marois and William Selway
May 11 (Bloomberg) — California Governor Arnold Schwarzenegger will seek “terrible cuts” to eliminate an $18.6 billion budget deficit facing the most-populous U.S. state through June 2011, his spokesman said.
Schwarzenegger, 62, who will introduce his revised budget plans on May 14, has said he won’t seek tax increases to bolster California’s finances. The Republican’s forecast for the budget gap may rise after revenue fell short of his targets last month.
“We can’t get through this deficit without very terrible cuts,” Schwarzenegger spokesman Aaron McLear told reporters in Sacramento. “We don’t believe that raising taxes right now is the right thing to do.”
California’s revenue in April, when income-tax payments are due, trailed the governor’s estimates by $3.6 billion, or 26 percent. The gap wiped out gains from the previous four months, leaving collections $1.3 billion behind projections for the budget year that ends in June.
Schwarzenegger’s newest plan will revise the proposals introduced in January to account for the tax-collection shortages. In January, the governor said California may have to eliminate entire welfare programs, including the main one that provides cash and job assistance to families below the poverty line, without an influx of cash from the federal government.
More…


news item to file under "I told you so": Gold hits all-time high as investors seek haven


Stock Market Time Bomb?


"Brother Can You Spare a Trillion?"


Unions warn of Greek-style riots in Britain against public sector cuts after court victory over capping of redundancies.


Roubini: We Will Have Even More Crises in the Future


Germany Might Have to Pay Entire Euro Aid Bill!


Stock Market Crash Exposes World of Electronic Trading


US Exposure to EU Bailout is $50 Billion


Any idea as to what will happen when welfare is cut in California?
Schwarzenegger Preps "Terrible Cuts" to Close Deficit


Arab World Grapples with Food Shortage.


Looking for some .30-06 armor piercing (AP) ammo? The DoD's Civilian Marksmanship Program (CMP) just got a batch that they are offering for sale. This was mentioned this in their latest newsletter: "The .30-06 AP ammo that we now have available includes headstamps: AYR, SL, TW, and LC. Dates of manufacture vary from the 1940s to the 1950s. Most of the ammo is corrosive, but some may be non-corrosive. The ammo is packaged in 8 round M1 Garand en bloc clips, in bandoleers, in spam cans. Purchases of multiple cans will be shipped in what appear to be the original wooden crates (two spam cans per crate). Cans and crates will be selected luck of the draw as to the head stamp. 4C3006U202-192P. Single spam can (192 rounds). $60.00. S&H at $8.95 per can." (State and local restrictions may apply!)


"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." - Winston Churchill