FOMC Announcement: $600 Billion, $75 Billion/Month, $110 Billion Including QE Lite, 35% SOMA Limit Removed, $27.5 Billion Weekly POMO, On Run Rate To Monetize Entire Budget Deficit

 

El-Erian Warns QE2 To Backfire, Sees QE3 Coming Soon

 

The Real QE Numbers

Posted: Nov 03 2010     By: Jim Sinclair      Post Edited: November 3, 2010 at 5:04 pm
Filed under: General Editorial
Dear CIGAs,
The real number is not $600 billion in QE but $900 billion when you add present in place programs.
This is QE to infinity with the number larger and in the face of massive criticism .
It is only logical to assume that after the Fed’s announcement of QE to $900 billion by June 0f 2011 you would see intervention in the US dollar and Gold markets.
This is QE to infinity.

 

In The News Today

Posted: Nov 03 2010     By: Jim Sinclair      Post Edited: November 3, 2010 at 5:03 pm
Filed under: In The News

QE to Infinity
1. Today’s stand by the Fed is a watershed event.
2. It is so because the Fed opted for quite significant QE ($900 billion) by June in the face of overwhelming objections both nationally and internationally.
3. The Fed will review its activities in light of economic developments. MOPE takes that to mean curtailment with improving economic activity. The real meaning of those words is expansion of QE assuming negative economic developments, which I anticipate.
4. Gold now has a short term number of $1444 on it.
5. It will in my opinion go to $1650 and higher.



Jim Sinclair’s Commentary
Let’s balance the Federal Deficit:

GM Could Be Free of Taxes for Years By RANDALL SMITH and SHARON TERLEP
General Motors Co. will drive away from its U.S.-government-financed restructuring with a final gift in its trunk: a tax break that could be worth as much as $45 billion.
GM, which plans to begin promoting its relisting on the stock exchange to investors this week, wiped out billions of dollars in debt, laid off thousands of employees and jettisoned money-losing brands during its U.S.-funded reorganization last year.
Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won’t have to pay $45.4 billion in taxes on future profits.
The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM’s case, the losses stem from years prior to when GM entered bankruptcy.
Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax benefits. The U.S. bailout of GM, in which the Treasury took a 61% stake in the company, ordinarily would have resulted in GM having such limits put on its tax benefits, according to tax experts.
More…




Jim Sinclair’s Commentary
Now the litigation has real fangs. Expect a settlement based on which side has the most money, and attorney’s normal greed.

Hagens Berman Sobol Shapiro: JP Morgan and HSBC Face RICO Charges in Silver Futures Class Action Lawsuit
Banks alleged to have used naked short-selling to rig market
NEW YORK, Nov. 3, 2010 /PRNewswire/ — JP Morgan Chase & Co. (NYSE: JPM) and HSBC Securities Inc. (NYSE: HBC) face charges of manipulating the market for silver futures and options in violation of federal commodities and racketeering laws, according to a new lawsuit filed Tuesday in the U.S. District Court for the Southern District of New York.
The suit – which alleges violation of the Commodity Exchange Act and the Racketeering Influenced and Corrupt Organizations (RICO) Act – alleges that the two banks colluded to manipulate the market for silver futures starting in the first half of 2008 by amassing huge short positions in silver futures contracts they had no intent to fill, but did so to force silver prices down to their benefit.
The suit was filed on behalf of Carl Loeb, an independent investor in silver futures and options, by Seattle-based Hagens Berman Sobol Shapiro LLP, a class-action and complex litigation firm.
"The practice of naked short selling has long been a serious issue on Wall Street," said Steve Berman, co-counsel and managing partner at Hagens Berman. "What we know about the scope and intent of JP Morgan and HSBC’s actions in this short-selling scheme dwarfs any other similar attempt to manipulate a commodities market."
According to the complaint, JP Morgan amassed a sizeable short position in silver futures and options in part through its March 2008 acquisition of investment bank Bear Stearns. By August 2008, JP Morgan and London-based HSBC controlled more than 85 percent of the commercial net short position in silver futures contracts.
More…




Jim Sinclair’s Commentary
Back door tariff increases by delaying delivery of goods.

Upgrade urged to counter US probes By Ding Qingfen (China Daily)
Updated: 2010-11-03 06:50
High-end exports will come under ‘increased scrutiny’ by Washington
BEIJING – China’s ambassador to the World Trade Organization (WTO) urged Chinese exporters to boost product upgrade as the United States shifts its focus from labor-intensive goods to investigate imports of high-end products from China.
Since the US Commerce Department announced a probe last month into China’s clean energy sector over so-called government subsidies, it is clear that the US is increasingly looking critically at China’s high-end products as part of its trade weaponry, Sun Zhenyu, China’s top envoy to the WTO, said.
"China has become the major target of global trade protectionism and the US is a major user of trade remedy measures against China," Sun said.
"While China’s labor-intensive goods remain a major target, recent evidence shows that the US has shifted to the value-added (high-end) goods. Chinese industry should keep a close eye on the new trend," he said.
More…

GM Files 500 Page Paperweight-cum-Prospectus, Hopes To Sell $10 Billion In Stock To Hapless Lemmings

 

Former BIS Advisor And Central Banker Warns Entire World Is On Verge Of Another Bubble That "Could Burst With Disastrous Consequences"