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Taking gold as collateral, exchange acknowledges that it's money

 

Ireland Rescue Imminent As Bund Spreads Pass 720bps

 

Guest Post: The Giant Cover Up

 

The Dollar: Every Man For Himself

 

Insider Selling Hits All Time Record Of $4.5 Billion In Prior Week As Everyone Is Getting Out Of Market

Prepare for Mass Inflation
By: Richard Daughty, The Mogambo Guru

In The News Today

Posted: Nov 11 2010     By: Jim Sinclair      Post Edited: November 11, 2010 at 12:06 pm
Filed under: In The News
Jim Sinclair’s Commentary
No problem. The Chinese were just on their way to India for a social visit and wished to say hello.

The uninvited guest: Chinese sub pops up in middle of U.S. Navy exercise, leaving military chiefs red-faced By MATTHEW HICKLEY
Last updated at 00:13 10 November 2007
When the U.S. Navy deploys a battle fleet on exercises, it takes the security of its aircraft carriers very seriously indeed.
At least a dozen warships provide a physical guard while the technical wizardry of the world’s only military superpower offers an invisible shield to detect and deter any intruders.
That is the theory. Or, rather, was the theory.
Uninvited guest: A Chinese Song Class submarine, like the one that surfaced by the U.S.S. Kitty Hawk
American military chiefs have been left dumbstruck by an undetected Chinese submarine popping up at the heart of a recent Pacific exercise and close to the vast U.S.S. Kitty Hawk – a 1,000ft supercarrier with 4,500 personnel on board.
More…



Jim Sinclair’s Commentary
Nobody has spoken about a gold standard. He does not understand.
Even the great have a hard time understanding the role of gold.
What I anticipate and have written about in the manner of gold’s return is NOT a gold standard.

Roubini: Here’s Why a Gold Standard Won’t Work Published: Tuesday, 9 Nov 2010 | 6:28 PM ET
A gold standard would just make business cycles more extreme, according to co-founder and chairman of Roubini Global Economics, Nouriel Roubini.
What’s more, a gold standard would make central banks unable to fight inflation or deflation, much less do anything to combat persistent unemployment, Roubini said in an interview with NetNet yesterday.
"A fixed exchange regime, even if it is not a gold standard… that world just doesn’t work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical," Roubini told NetNet. "Suppose you have a fixed exchange rate regime…it just exacerbates the business cycle."
Roubini asks us to imagine two countries: One that’s growing very quickly, and one that’s growing very slowly.
The economy that is growing quickly would tend to "overheat"—an economic phenomenon characterized by accelerated growth, inflation and the potential for asset bubbles. In the economy that is growing more slowly, there would be a tendency toward deflationary pressure and recession. So, instead of having a central bank with the capacity to successfully counter-balance these tendencies, an economy with a fixed exchange rate regime would continue to reinforce the existing negative trends in the business cycle, Roubini argues.
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Jim Sinclair’s Commentary
QE to infinity in euro land.

EU stands ready to ride to Ireland’s rescue as borrowing costs surge
European commission president José Manuel Barroso says ‘all necessary instruments in place’ as fears of Greek-style bailout cast shadow over G20 summit in Seoul Julia Kollewe
Thursday 11 November 2010 12.56 GMT
European commission president José Manuel Barroso said today the EU stood ready to ride to Ireland’s rescue if needed, as the country’s borrowing costs surged to new record levels.
Barroso insisted that Ireland would be supported by its fellow eurozone members if its debt crisis escalated. But his words failed to calm the European bond market, with the cost of insuring Irish, Spanish and Portuguese government debt against default hitting all-time highs.
Irish 10-year bond yields soared to 9.26% this morning, the highest since the euro was created in 1999. This pushed the premium charged to hold 10-year Irish bonds over German bunds – Europe’s benchmark – to a record 680 basis points, with traders saying liquidity had dried up.
In Portugal, which is also struggling to cope with debt, the spread rose above 500 bps for the first time.
"It’s the same trend we’ve been seeing. The market is very nervy," said Markit analyst Gavan Nolan.
The surge in borrowing costs came despite Barroso’s assurances in Seoul, where world leaders have gathered for the G20 summit. Ireland’s crisis has triggered fears of a repeat of Greece’s near-bankruptcy, casting a shadow over the summit as world leaders try to hammer out a deal for global growth.
"What is important to know is that we have all the necessary instruments in place now to support Ireland if necessary," Barroso said, when asked whether the EU would bail out Ireland as it did Greece earlier this year. "In case of need, the EU is ready to support Ireland".
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Jim Sinclair’s Commentary
Gold is Honest Money.
Here is a sixty pound brick of Honest Money. That is the total story. All else is blather




Die Was Cast Before Elections




Going Back to a Gold Standard?