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In The News Today

Posted: Jan 17 2011     By: Jim Sinclair      Post Edited: January 17, 2011 at 1:41 pm
Filed under: In The News

Dear CIGAs,
The Conservative backlash has one endemic problem.





Jim Sinclair’s Commentary
Keep in mind that the manipulators can have short term influence on the gold price but it is debt that moves gold.
The manipulators cannot affect that therefore gold will trade at $1650 and better.

U.S. debt tops $14 trillion, nears ceiling Monday, January 17, 2011
The United States just passed a dubious milestone: Government debt surged to an all-time high, passing $14 trillion – $45,300 for every person in the country.
That means Congress soon will have to lift the legal debt ceiling to give the almost maxed-out government an even higher credit limit or dramatically cut spending to stay under the current cap. Either way, a fight is ahead on Capitol Hill, inflamed by the passions of tea party activists and deficit hawks.
Each side is blaming the other for an approaching economic train wreck as Washington wrestles with how to keep the government in business and avoid defaulting on global financial obligations.
Bills that would increase the debt limit are among the most unpopular in Congress, serving as pawns for decades in high-stakes bargaining. Until now, the ending has been the same: We go to the brink before raising the ceiling.
All bets may be off, however, in this charged political environment, despite some signs that the partisan rhetoric is softening after the recent shootings in Arizona.
More…



Jim Sinclair’s Commentary
Gold is the opposite of debt. The house of cards must fall.





Jim Sinclair’s Commentary
MOPE is all that will be produced at the upcoming Hu/US Administration meeting. That and of course the ever present photo op.

China’s Hu Jintao: Currency system is ‘product of past’ 17 January 2011 Last updated at 04:51 ET
Chinese President Hu Jintao has said the international currency system dominated by the US dollar is a "product of the past".
Mr Hu also said China was taking steps to replace it with the yuan, its own currency, but acknowledged that would be a "fairly long process".
The remarks to two US newspapers come ahead of a state visit by the Chinese leader to Washington this week.
They reflect continuing tensions over currency issues between the two powers.
The remarks to the Washington Post and Wall Street Journal came in the form of written responses to questions. Mr Hu also reiterated criticism of a decision by the US Federal Reserve to inject $600bn into the economy, which some argue will weaken the dollar at the expense of other countries’ exports.
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Jim Sinclair’s Commentary
Major lip service starts.

Hu Highlights Need for U.S.-China Cooperation, Questions Dollar By ANDREW BROWNE
BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
"We both stand to gain from a sound China-U.S. relationship, and lose from confrontation," Mr. Hu said in written answers to questions from The Wall Street Journal and the Washington Post.
Mr. Hu acknowledged "some differences and sensitive issues between us," but his tone was generally compromising, and he avoided specific mention of some of the controversial issues that have dogged relations with the U.S. over the past year or so—including U.S. arms sales to Taiwan that led to a freeze in military relations between the world’s sole superpower and its rising Asian rival.
On the economic front, Mr. Hu played down one of the main U.S. arguments for why China should appreciate its currency—that it will help China tame inflation. That is likely to disappoint Washington, which accuses China of unfairly boosting its exports by undervaluing the yuan, making its products cheaper overseas. The topic is expected to be high on U.S. President Barack Obama’s agenda when he meets Mr. Hu at the White House on Wednesday.
Mr. Hu also offered a veiled criticism of efforts by the U.S. Federal Reserve to stimulate growth through huge bond purchases to keep down long-term interest rates, a strategy that China has loudly complained about in the past as fueling inflation in emerging economies, including its own. He said that U.S. monetary policy "has a major impact on global liquidity and capital flows and therefore, the liquidity of the U.S. dollar should be kept at a reasonable and stable level."
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Jim Sinclair’s Commentary
An interesting read.

Ex-Swiss banker to hand account files to WikiLeaks
LONDON – A former Swiss banker was on Monday due to hand over files to WikiLeaks which he alleges detail attempts by wealthy business leaders and lawmakers to evade tax payments.
Rudolf Elmer, a former employee of Swiss-based Bank Julius Baer, told Britain’s Observer newspaper on Sunday that the documents include details of about 2,000 accounts held in offshore financial centers. He says the account holders include "high net worth" celebrities, business leaders and lawmakers from the U.S., Britain and Asia.
Elmer, who has previously leaked banking documents to the secret-spilling site, was scheduled to hold a news conference later Monday at London’s Frontline Club with a WikiLeaks representative. Vaughan Smith, the owner of the Frontline Club, said he couldn’t say who the representative would be.
Smith’s 10-bedroom mansion in eastern England has been serving as a makeshift headquarters for WikiLeaks founder Julian Assange since he was released on bail on Dec. 16. Assange has compared his bail conditions — which largely confine him to Smith’s home — to "high-tech house arrest," but has recently promised that the flow of leaked documents would increase.
Elmer’s press conference comes two days before he is due to appear before a Zurich regional court to answer charges of coercion and violating Switzerland’s strict banking secrecy laws.
He told the Observer newspaper he planned to disclose the new set of files to expose activities in offshore financial centers. "The one thing on which I am absolutely clear is that the banks know, and the big boys know, that money is being secreted away for tax-evasion purposes," he was quoted as telling the newspaper.
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