Happy New Year...2011

Read Ted Butler's Prophetic Letter Warning Of COMEX Silver Manipulation... In 1989

Gold Trading Closes: Returning 29.7% For the Year, Doubles S&P 2010 Performance

 

Goldman's 10 Questions (And Answers) For 2011

In The News Today

Posted: Dec 31 2010     By: Jim Sinclair      Post Edited: December 31, 2010 at 2:18 pm
Filed under: In The News
Dear CIGAs,
Snow is no problem...in a town with less than 3000 residents, I am the guy in the suit.



Jim Sinclair’s Commentary
I received a great compliment from a former Forbes reporter who now works for the Times. He called to remind me that when he wrote an article about me on December 10th, 2001 I had told him gold would go to $1650 and that Bear Sterns would go broke on OTC derivatives.

Jim Sinclair’s Commentary
Have you subscribed? The meat is in the full reports and is much more than these one liners.
Here is how John Williams sees things.
- 2010: A Year of Depressed Economic Stagnation
- 2011: A Year of Increasing Economic and Systemic Difficulties
- Gold Outperforms Dow for Seventh Straight Year (2010)
"No. 342: Economic, Market and Systemic Outlook for 2011"
Web-page: http://www.shadowstats.com




Jim Sinclair’s Commentary
In the spirit of recommending resources to you, consider the following.

GEAB N°50 is available! Global systemic crisis: Second half of 2011 – European context and US catalyst – Explosion of the Western public debt bubble
- Public announcement GEAB N°50 (December 16, 2010)
The second half of 2011 will mark the point in time when all the world’s financial operators will finally understand that the West will not repay in full a significant portion of the loans advanced over the last two decades. For LEAP/E2020 it is, in effect, around October 2011, due to the plunge of a large number of US cities and states into an inextricable financial situation following the end of the federal funding of their deficits, whilst Europe will face a very significant debt refinancing requirement (1), that this explosive situation will be fully revealed. Media escalation of the European crisis regarding sovereign debt of Euroland’s peripheral countries will have created the favourable context for such an explosion, of which the US “Muni” (2) market incidentally has just given a foretaste in November 2010 (as our team anticipated last June in GEAB No. 46 ) with a mini-crash that saw all the year’s gains go up in smoke in a few days. This time this crash (including the failure of the monoline reinsurer Ambac (3)) took place discreetly (4) since the Anglo-Saxon media machine (5) succeeded in focusing world attention on a further episode of the fantasy sitcom "The end of the Euro, or the financial remake of Swine fever" (6). Yet the contemporaneous shocks in the United States and Europe make for a very disturbing set-up comparable, according to our team, to the "Bear Stearn " crash which preceded Lehman Brothers’ bankruptcy and the collapse of Wall Street in September 2008 by eight months. But the GEAB readers know very well that major crashes rarely make headlines in the media several months in advance, so false alarms are customary (7)!
More…




Jim Sinclair’s Commentary
Our friend Egon wishes everyone an interesting New Year, and a Happy one for those that are prepared.

HYPERINFLATION WILL DRIVE GOLD TO UNTHINKABLE HEIGHTS by Egon von Greyerz
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments.  Thus most of these assets are also worth-less.
So the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit.  There is no longer a question of IF it will happen but only WHEN and HOW.  The world lives in blissful ignorance of this. Stockmarkets remain strong and investors worldwide have piled into government bonds in a perceived flight to safety. Due to a century of money creation (and in particular since the 1970s) by governments and by the fractal banking system, investors believe that stocks, bonds and property can only go up. Understanding risk and sound investment principles has not been necessary in these casino markets with guaranteed payouts for anyone who plays the game. Maximum leverage and derivatives have in the last 10-15 years driven markets to unfathomable risk levels, with massive rewards for the participants.
In the meantime central banks are cranking up the printing presses but as Bernanke recently said quantitative easing is an “inappropriate” description of what should be called “securities purchases”!  Who is he kidding? What the Fed is buying has nothing to do with “securities”. There is no security whatsoever in the rubbish the Fed is purchasing. They are buying worthless pieces of paper with worthless pieces of paper. This is the Ponzi scheme of all Ponzi schemes.
Let us be very clear, this financial Shangri-La is now coming to an end. The financial system is broke, many western sovereign states are bankrupt and governments will continue to apply the only remedy they know which is issuing debt that will never ever be repaid with normal money.
More…




Jim Sinclair’s Commentary
Unofficial problem bank list increases to 935 institutions. CIGA Rusty Bayonet wishes everyone a Happy New Years Eve!
Click here to view the list…

Jim’s Mailbox

Posted: Dec 31 2010     By: Jim Sinclair      Post Edited: December 31, 2010 at 2:09 pm
Filed under: Jim's Mailbox

Jim Sinclair’s Commentary
CIGA Lew wishes all his CIGAs a happy New Year in this very interesting video.
Click here to watch the video…



Dear LT,
People forget the 10-20+ percent bear raids on gold that were the rule of the day years ago, the hammering of RGLD, the synthetic dollar short BS, Central bank selling and so on. They would do almost anything to shake us out of our positions…
You have again been the most charismatic leader in my opinion in the gold bull market!
You have also shown us by example how to control emotions and to remain rational so as not to screw things up.
I am wishing you the best in 2011 for health, happiness and prosperity to you and your family!
Your friend,
CIGA BT

Jim Sinclair’s Commentary
CIGA Giancarlo in Joberg observes "This is like a frog in hot water!"

Bolivians protest fuel price hike Fri Dec 31, 2010 6:57AM
Thousands of demonstrators have taken to the streets across Bolivia to protest the recent jump in fuel prices in the country.
Protesters marched through the streets in capital La Paz and other cities across Bolivia on Thursday, demanding from the government of President Evo Morales to repeal the hike.
The demonstration in La Paz started peacefully but turned violent after police prevented protesters from entering the main plaza where the presidential palace is located, AP reported.
More…



Petrol price could rise in January December 29 2010 at 01:04pm
The price of petrol could increase by 25 cents a litre next week on Wednesday due to the rise in the international price of oil since November 26, the latest calculations issued by the state-owned Central Energy Fund released on Wednesday showed.
From December 1, the price of petrol at the coast was set at R8.21 a litre and the inland price was established at R8.45 a litre.
The next change to the local petrol prices will be made on Wednesday, January 5, and will be based on the average over or under recovery in the petrol price from November 26 to December 30.
More…



Fuel price rise adds to inflationary pressure 15 Dec, 2010, 02.03PM IST,REUTERS
MUMBAI: Moves by state-run oil retailers to raise petrol prices and the possibility that diesel will increase too make the Reserve Bank of India’s (RBI) fight against inflation more difficult and piles more pressure onto a beleaguered government.
Indian Oil Corp , Bharat Petroleum and Hindustan Petroleum will raise petrol prices by about 5.6 per cent this week due to surging global crude prices. Shares in the companies rose early on Wednesday.
The Reserve Bank of India meets this week to review its monetary policy in the light of still high inflation.
More…




Here Comes The Drama CIGA Eric
BT,
Silver is clearly within a long-term secular up trend. This overrides any short-term technical targets. The silver ‘newbies’ entering the fray after an undisputed breakout will accelerate the trend. Acceleration implies y=x2 rather than y=mx+b. The addition of the crooked number next to the X will add drama for both sides of the trade.
The observation today, as it was months ago, is growing trend energy. This is illustrated by a dramatic surge in REV(E). A surge in REV(E) suggests accumulation. Markets that are under accumulation are difficult to control. This one is all about control.
Silver ETF (SLV):
Regards,
Eric
More…




Don’t Interpret Trend Noise CIGA Eric
While experts interpret trend noise, they ignore the fact that cycles (TIME) anticipate price. The surge in trend energy, REV(E), suggests that yields on the long bond will continue rising when TIME is right.
30 Year Treasury Index Bear 3x ETF:
Headline: Treasurys slip after unemployment, housing data
Treasury prices slipped a little further Thursday, pushing yields up, after reports showed fewer Americans filing for first-time jobless benefits than economists had forecast and pending home sales higher than predicted.
Analysts noted that most bond investors would treat the session as the last of the year, even though the market is open for a half-day Friday. That will mean a lot of position adjustments and so-called window dressing of portfolios for the end of the month and year, especially after wild swings this week, more than any meaningful indication of the how the data fit into investors’ longer-term outlook.
Source: marketwatch.com
More…




Growing Signs of Hyperinflation CIGA Eric
"Who is more foolish: the fool or the fool that follows him?"
Elimination of lower denomination coins and changing metal composition of coins are clear sign of hyperinflation across the globe. Yet, there is no shortage of experts warning the masses about the threat of deflation.
The threat of deflation is an illusion as the signs of hyperinflation are growing in size and frequency. The pain of monetary reality, however, prevents many from straying too from the comfort of the illusion.
Headline: Soaring metal prices ring death knell for 25p coins
The ubiquitous 25 paise coin will be history in six months’ time. Worried by the soaring metal prices, the government has decided to scrap all coins up to the denomination of 25 paise from June 30, 2011, making 50 paise the minimum denomination accepted in markets.
“From this date, these coins shall cease to be a legal tender for payment as well as on account. The minimum denomination coin acceptable for transaction will be 50 paise from that date,” said a finance ministry release on Thursday adding that the Reserve Bank of India will separately notify the procedure for calling in the coins.
Source: indianexpress.com
More…




Public to Private Transition: Identify & Adapt CIGA Eric
Identify and adapt or the markets will kick your ass in 2011.
Yet another transition from public to private sector (cycle) will catch many playing by the old rules.
Long-Term U.S. Corporate Bonds Total Return Index (LTCBTRI) to Long-Term U.S. Government Bonds Total Return Index (LTGBTRI):
More…