another failed raid in silver and gold

Perth Mint reports 'unrelenting' demand for gold on dip below $1,400

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another failed raid in silver and gold

In The News Today

Posted: Jan 11 2011     By: Jim Sinclair      Post Edited: January 11, 2011 at 8:12 pm
Filed under: In The News


Jim Sinclair’s Commentary
My dear friend Harry Schultz who I have known for more than 40 years has written his last Harry Schultz Letter.
His final word on gold is:
About gold, Schultz retains his long-term bullishness. He quotes the respected Seeking Alpha service:
“For gold to match the growth in US M1, M2, public debt & budget deficit, gold will have to reach $1,800, $2,400, $7,800 & $13,200, respectively. While I can’t imagine gold going to $13k, these numbers tell me that calling gold a bubble is a bit premature. In my view, money supply, public debt & the budget deficit are in a bubble, not gold, not yet.”
Schultz’s comment: “Wake me up at $2,400 gold.”
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A must watch.
Massachusetts Foreclosure Ruling: ‘Landmark’





Jim Sinclair’s Commentary

Maybe the Sheeple are waking up?

Illinois Governor Flees Capitol Through The Basement After Disastrous Meeting On State Budget Gregory White
Illinois Governor Pat Quinn fled the state’s Capitol building through the basement after a lengthy day of debating a rescue plan for the troubled state, according to CBS Chicago.
Illinois is considering raising the state’s income tax by 75% as part of its financial reform package.
The reform is key to Illinois balancing its budget and avoiding further debt market stress.
The state’s current government is attempting to rush through income tax reforms prior to the new assembly being sworn in later this week.
The proposed tax increases from the Democrats from CBS Chicago:
An increase in the income tax from 3% to 5.25%, to decline in four years time
A dollar increase in the cigarette tax, doubling the current tax
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Jim Sinclair’s Commentary
Gold will eventually rally exponentially and investors who don’t own the precious metal are "insane," and may be showing “masochistic tendencies," –Robin Griffiths, technical strategist at Cazenove Capital,
‘Not Owning Gold is a Form of Insanity’: Chartist Published: Monday, 10 Jan 2011 | 5:09 AM ET
Gold will eventually rally exponentially and investors who don’t own the precious metal are "insane," and may be showing "masochistic tendencies," Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.
"I think not owning gold is a form of insanity, it may even show unhealthy masochistic tendencies, which might need medical attention," Griffiths said.
Gold, along with other metals such as copper, has been making new all time highs, which is a strong buying signal, according to Griffiths.
"Although it’s been a top performer for each of the last ten years, it’s still in a linear trend. Eventually it will go exponential and make more in the last little bit than the whole of the ten year trend," he said.
Griffiths said that any short-term declines in the price of gold represent a buying opportunity and the asset is still not an "over-owned trade".
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Jim Sinclair’s Commentary
Screw the guy who thought he was going to retire.

Gingrich Proposes Allowing State Bankruptcies, To Escape Pension Obligations By John Keefe | Jan 11, 2011
As a way to let state governments, and taxpayers, off the hook for paying the trillions in pension benefits they have promised to their workers, presidential hopeful and former House Speaker Newt Gingrich has proposed changing federal laws, so that states can go bankrupt. True, state pension plans don’t currently have enough to pay their pension benefits over time, not to mention all the other stuff that is due more immediately. But we have to remember that states agreed to pay these benefits in negotiations with workers. Legislators should be held accountable, and show the fortitude, to negotiate a solution to reduce them, rather than just walk away.
It’s the lead story in Pensions & Investments, a trade publication I happen to subscribe to, and on Newt Gingrich’s web site there is a transcript of a speech he made to the Institute for Policy Innovation, a group based in Lewisville, Texas, back in November.
I’ve written on it too, as has my MoneyWatch colleague Carla Fried.
Says the Gringrich site:
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Jim Sinclair’s Commentary
Good going Bill and Chris. Since the Swap was the means to holding up European Banks by the Fed, this is not a SMALL achievement.
 
U.S. District Court judge orders in camera review of secret Fed gold swap records
GATA says it has achieved a small, but significant victory in its fight to force the U.S. Federal Reserve to open up its gold swap agreements from 1990 on to public scrutiny. Author: Dorothy Kosich
Posted:  Tuesday , 11 Jan 2011
RENO, NV – The Gold Anti-Trust Action Committee (GATA) announced Monday that it has "scored a small but perhaps auspicious victory" in its fight to force the Federal Reserve to open up what GATA believes are secret records that reveal the bank’s "surreptitious market invention."
The Fed claims its gold swap agreement records involve "trade secrets" exempt from disclosure under the U.S. Freedom of Information Act (FOIA). GATA is seeking records of gold swaps dating back to 1990.
U.S. District Court Judge Ellen Segal Huvelle Monday ordered the Fed to produce the 20 gold-related documents the central bank has sought to keep secret by Friday for her own private review.
"While Judge Huvelle still could grant at any time the Fed’s motion to dismiss GATA’s lawsuit, her ruling today at least implies a little skepticism about the Fed and its tactics," GATA Secretary/Treasurer Chris Powell wrote on the organization’s website Monday.
In a statement issued Monday, U.S. Rep. Ron Paul announced he would be chairing the Monetary Subcommittee of the Financial Services Committee, which has oversight of the Federal Reserve. "Not surprisingly, since my chairmanship was announced, apologists for the Fed have been recycling the old canard about how increased transparency threatens the Fed’s so-called political independence," Paul noted.
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Jim Sinclair’s Commentary
Correct! However, the deepening crisis is creating have-nots.

Deepening crisis traps America’s have-nots
The US is drifting from a financial crisis to a deeper and more insidious social crisis. Self-congratulation by the US authorities that they have this time avoided a repeat of the 1930s is premature. By Ambrose Evans-Pritchard
There is a telling detail in the US retail chain store data for December. Stephen Lewis from Monument Securities points out that luxury outlets saw an 8.1pc rise from a year ago, but discount stores catering to America’s poorer half rose just 1.2pc.
Tiffany’s, Nordstrom, and Saks Fifth Avenue are booming. Sales of Cadillac cars have jumped 35pc, while Porsche’s US sales are up 29pc.
Cartier and Louis Vuitton have helped boost the luxury goods stock index by almost 50pc since October. Yet Best Buy, Target, and Walmart have languished.
Such is the blighted fruit of Federal Reserve policy. The Fed no longer even denies that the purpose of its latest blast of bond purchases, or QE2, is to drive up Wall Street, perhaps because it has so signally failed to achieve its other purpose of driving down borrowing costs.
Yet surely Ben Bernanke’s `trickle down’ strategy risks corroding America’s ethic of solidarity long before it does much to help America’s poor.
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Jim Sinclair’s Commentary
In China such a public statement has the blessings upon high.

C.banker urges China to cut U.S. debt holdings Sun Jan 9, 2011 11:52pm EST
BEIJING Jan 10 (Reuters) – China should further diversify its huge foreign exchange reserves away from U.S. government debt to reduce its risk exposure, a central bank official said in comments published on Monday.
"We should change the single-currency focus on buying U.S. Treasuries and adopt a more diversified structure for foreign exchange reserves to reduce risk," Xu Nuojin, deputy-director of the People’s Bank of China in Guangzhou, was quoted as saying by the Securities Times.
China should channel more of its foreign exchange reserves into resources and equities, Xu said.
Analysts estimate that about two-thirds of the reserves, which hit a record $2.65 trillion at the end of September, are parked in dollar assets, although the currency composition is a state secret.
Xu also urged the government to relax capital controls to enable companies to hold more foreign exchange earnings, which he said would help slow the rapid build-up in official currency reserves.
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Jim Sinclair’s Commentary

Now we have the Massachusetts Supreme Court ruling upholding the lower court ruling reported to you recently. This confirms the label of illegal what was in the first place fraud. That means big trouble for the banks.
The only way the banks can be saved another huge amount of losses is if the new conservative representatives in the hands of the Banksters pass a law making fraud of this kind legal.
Don’t put it past the conniving Banksters.

Implications of the Ibanez Case Ruling
The Too Big To Fail banks have been waiting with trepidation for a ruling from the Supreme Judicial Court of the State of Massachusetts on the case titled US Bank National Association (as trustee) vs. Antonio Ibanez. They were right to be fearful. The state supreme court has ruled against the banks and upheld a lower court order that nullified foreclosures by US Bancorp and Wells Fargo, on the grounds that neither bank had the legal right under Massachusetts law to foreclose. Today’s ruling has far-reaching consequences for the banks and the housing market in general, as it throws into serious question the legal soundness of millions of mortgages in the US if, as expected, courts in other states come to similar conclusions as the Supreme Judicial Court of Massachusetts.
The Ibanez case tied together two separate but similar foreclosure actions in Massachusetts, the second case being that of Wells Fargo vs. Mark and Tammy LaRace. Both foreclosures took place on the same day, the banks having previously published their intention to foreclose in a local newspaper as required by law. The banks then purchased the properties at prices described by the court as significantly below market value. About a year after the foreclosures (in autumn of 2008) the banks then applied to the local Land Court for a ruling that in each foreclosure, the bank had full legal right to foreclose as mortgagee, that the bank title to the property was “unclouded” by any other contesting right, and that the bank therefore owned the property in what is legally known as “fee simple” status. These claims were contested by the property owners who had lost their homes in the foreclosure, and the Land Court agreed with the homeowners that the foreclosures had been invalid. Critical to the decision of the Land Court was the fact that both banks admitted that they did not receive assignment of the mortgage to the property until after the foreclosure.
The State Supreme Judicial Court Upholds the Ruling of the Lower Court
The Supreme Judicial Court found that the Land Court made no errors in its judgment for the defendants. Citing the Ibanez case as an example, the justices noted that Antonio Ibanez executed a mortgage in 2005 with Rose Mortgage Inc., which allegedly assigned this mortgage (which gives the proper holder the legal right to foreclose) to Option One Mortgage Co. They in turn assigned it to Lehman Bros. Lehman Bros. supposedly assigned the mortgage to Lehman Bros. Holdings Inc., which packaged it with about 1,000 other mortgages to be sold as a security. These mortgages were supposed to be placed with Structured Asset Securities Corp, set up explicitly for the purpose of protecting the bondholders who bought the securities. This company was supposed to assign the mortgages to US Bancorp N.A., as trustee. In the event there was need to foreclose on any of the properties, it was the job of US Bancorp to do so, on behalf of the trust and the interest of the bondholders. This is why US Bancorp entered into a foreclosure action against Antonio Ibanez, who clearly had defaulted on his mortgage, and it is why US Bancorp became a plaintiff in front of the Land Court and the Supreme Judicial Court of Massachusetts.
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