Egypt in turmoil, Riots in Algeria, Jordan, gold and silver rise despite actions by the banking cartel

Harvey Organ 2-1-2010

Egypt in turmoil, Riots in Algeria, Jordan, gold and silver rise despite actions by the banking cartel

 

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month

 

Here Comes QE3: Hoenig Says "More Quantitatve Easing May Be Discussed"

 

Guest Post: The Mathematics Of Hyper-Inflation

Submitted by Tyler Durden on 02/01/2011 17:51 -0500
Here is a simple reason why monetary inflation becomes an exponential phenomenon. As currency is debased, an increasing quantity of money is required to achieve the same real-money effect. For example, if the quantity of money is increased 25%, the initial benefit to the issuer is a tax of that amount on the holders of previously-existing money stock. To achieve the same tax in real terms for a second time requires a further expansion of 31.25% of the original monetary units, and continuing with subsequent 25% expansions on increasing totals we obtain our exponential series of monetary inflation...The only way the exponential loss of purchasing power that results from monetary inflation ends is through the complete collapse of fiat currencies. Whether this is brought on by a financial crisis or through hyperinflation is irrelevant: the result is the same. Furthermore, quantitative easing programmes have merely accelerated the trend. Particularly worrying is the dramatic expansion of the monetary base in the US, which has greatly exceeded our theoretical example of 25% by increasing 168% over the last two years. While this is routinely explained as a policy response to the banking crisis, it has the likely effect of accelerating future government demand for printed money even more, speeding up its inevitable demise.

 

Ivory Coast Defaults On $2.3 Billion In Bonds, Bonds Rise, Cocoa Drops

 

Rice Two Cents Away From "Limit Up" For Second Day In A Row, At Highest Price In Over A Year

 

In The News Today Posted: Feb 01 2011     By: Jim Sinclair      Post Edited: February 1, 2011 at 3:25 pm
Filed under: In The News

Dear CIGAs,
If there is a departure of Mubarak from Egypt that will be seen in history as akin to the departure of the Shah of Iran, upon which the US had its signature.

Jim Sinclair’s Commentary
This storm is almost as long as this country is. Do you get the feeling Mother Nature is angry at the Banksters and Sheeple that allow this economic and social disaster?

Massive Winter Storm Affecting Large Portion of Great Plains and Midwest
A large swath of blizzard warnings, winter storm warnings, freezing rain advisories, winter weather advisories and winter storm watches are in effect, stretching from new Mexico and the Southern Plains northeastward through the Midwest and into the upper Mid-Atlantic and New England. Get the latest updates from your local weather forecast office by clicking on the map


Jim Sinclair’s Commentary
More international QE to infinity. Gold is the only currency with no liability attached to it.
See Occum’s Razor on Gold posted yesterday.

IMF, warning of war, says ready to help Egypt Feb 1 02:55 AM US/Eastern
The International Monetary Fund stands ready to help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he warned governments to tackle unemployment and income inequality or risk war.
Dominique Strauss-Kahn also said rising food prices could have "potentially devastating consequences" for poorer nations, and warned that Asia’s fast-growing economies faced a risk of a "hard landing".
Overall, according to the IMF managing director, widening imbalances across and within countries were sparking tensions that threaten to derail the fragile global economic recovery — and could even spark armed conflict.
As Egyptian protesters gathered in their thousands demanding the departure of President Hosni Mubarak, Strauss-Kahn said: "The IMF is ready to help in defining the kind of economic policy that could be put in place."
In a speech in Singapore, he said rampant unemployment and a growing income gap was a "strong undercurrent of the political turmoil in Tunisia and of rising social strains in other countries".
More…




Jim Sinclair’s Commentary
You know every bit of the world’s problems are primarily a product of the damned OTC derivatives and the people who made a fortune due to the Lehman melt down.
Sarkozy is the only person with a large platform that has publicly called it. Why do you think Paul Volcker quite Washington?

Ireland’s outgoing PM officially announces intention to dissolve parliament 2011-02-02 00:13:22
DUBLIN, Feb. 1 (Xinhua) — Ireland’s outgoing Prime Minister Brian Cowen announced Tuesday afternoon that he will officially ask President Mary McAleese to dissolve the Dail (lower house of parliament), paving the way for the general election which will most likely take place on Feb. 25.
In a farewell speech to the Dail, Cowen said he will head Aras an Uachtarain (official residence of the Irish president) to advise the president to dissolve the Dail and to summon the incoming Dail to meet at midday on March 9.
He said his time as Taoiseach (prime minister) has been a period of great "trial and test."
The outgoing Irish prime minister said the common good was always at the forefront of his decisions.
Parliament officials expect the Dail’s final session to last up to one and half hours. Later, Cowen will be driven to Aras an Uachtarain, where he will ask President McAleese to formally dissolve the 30th Dail, which was formed after the 2007 general election.
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Jim Sinclair’s Commentary
Believe it or not Al Jazeera has become the news service of choice worldwide.
There are approximately 2 million people in Tariah Square. This was just reported. A very large public revolution is occurring.
http://english.aljazeera.net/watch_now/


Jim Sinclair’s Commentary
This is not an Egyptian problem, it is a regional problem being outrageously understated by North American media.

Jordan’s King Abdullah dismisses government in wake of protests By Douglas Stanglin, USA TODAY
Jordan’s King Abdullah has dismissed his government and named a new prime minister to carry out "true political reforms," the palace says, according to AFP.
Earlier posting: Jordan’s King Abdullah has dismissed his government and appointed a new prime minister, AlJazeera reports.
The network says the Jordanian government resigned amid protests in the country.
Update at 8:24 a.m. ET: The Palestinian Cabinet in West Bank says it will hold municipal elections "as soon as possible," the Associated Press reports.
The Palestinian Authority has not held elections since 2006. Prime Minister Salam Fayyad’s Cabinet said Tuesday it will set dates for the vote next week.
More…




Jim Sinclair’s Commentary
Back door QE rescues will be purchases by the Fed via Goldman on state bonds. This will be similar to how the ECB is present in every EU State auction as a primary buyer.

Cuomo to Cut New York State Spending by $8.86 Billion, Fire 9,800 Workers By Michael Quint – Feb 1, 2011 10:38 AM MT
New York Governor Andrew Cuomo proposed cutting local school funding by 7.3 percent and reducing Medicaid spending by almost $3 billion in a budget that seeks to close a $10 billion deficit.
As many as 9,800 workers may be fired under the spending plan for the third most-populous U.S. state, according to Cuomo’s budget documents released today. Aid to 700 school districts, the state’s largest expense, would be cut by $1.5 billion from last year to $19.4 billion in the fiscal year beginning April 1.
Cuomo, a 53-year old Democrat elected in November, said the state needs to break the cycle of “continually spending more money at levels you cannot afford,” as required by laws approved in past years. “More money does not equal better service” in Medicaid or education, he said yesterday.
Outlays for Medicaid would be reduced by $2.85 billion, with future growth in the health-care program for the poor tied to the medical-care-costs portion of the Consumer Price Index. The state’s existing rules and formulas would have required spending growth of 13 percent this year, Cuomo has said.
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Jim Sinclair’s Commentary
Egypt is not only an Egyptian problem, it is a total Mid Eastern clutch event.
A clutch event is one that shifts the gears of the area into something new whose definition will only emerge as it occurs. A clutch event is rare, large and usually not well understood until after it has happened.


Jim Sinclair’s Commentary
This is extremely good for the sale of low orbit satellite phones with prepaid minutes.

Internet ‘Kill Switch’ Legislation Back in Play By David Kravets
Legislation granting the president internet-killing powers is to be re-introduced soon to a Senate committee, the proposal’s chief sponsor told Wired.com on Friday.
The resurgence of the so-called “kill switch” legislation came the same day Egyptians faced an internet blackout designed to counter massive demonstrations in that country.
The bill, which has bipartisan support, is being floated by Sen. Susan Collins, the Republican ranking member on the Homeland Security and Governmental Affairs Committee. The proposed legislation, which Collins said would not give the president the same power Egypt’s Hosni Mubarak is exercising to quell dissent, sailed through the Homeland Security Committee in December but expired with the new Congress weeks later.
The bill is designed to protect against “significant” cyber threats before they cause damage, Collins said.
“My legislation would provide a mechanism for the government to work with the private sector in the event of a true cyber emergency,” Collins said in an e-mail Friday. “It would give our nation the best tools available to swiftly respond to a significant threat.”
The timing of when the legislation would be re-introduced was not immediately clear, as kinks to it are being worked out.
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