Harvey Organ March 8 2011
Global pension assets are estimated to be – drum roll, please – $31.1 trillion. No, that is not a misprint. It is more than twice the size of last year’s GDP in the U.S. ($14.7 trillion). We know a few hedge fund managers have invested in gold, like John Paulson, David Einhorn, Jean-Marie Eveillard. There are close to twenty mutual funds devoted to gold and precious metals. Lots of gold and silver bugs have been buying. So, what about pension funds? According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector. Now here’s the fun part. Let’s say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases. If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward.
Symbolic maybe. Damn smart, yes.
Currency bill backers want alternative to ‘paper dollar’ By Ladd Brubaker
Updated Mar 4, 2011 01:03PM
A bill that recognizes U.S. gold and silver coins as legal tender and exempts their sale from the state capital gains tax passed the Utah House Government Operations Committee Wednesday.
Supporters say HB317, introduced by Rep. Brad Galvez, R-West Haven, is a first step to creating an “inflation-proof” alternative to the “paper dollar.”
Larry Hilton, a local attorney and supporter of the “sound money movement,” said that “un-backed money” created by the Federal Reserve to stimulate the economy, is “hanging over us like the sword of Damocles waiting to just come down in an avalanche and destroy the value of our currency.”
While the bill says the use of gold and silver coin as currency would be voluntary, it requires the Legislature to study the “possibility of establishing an alternative form of legal tender,” and to come up with further recommendations for the 2012 session.
Jeffrey Bell, the policy director for the Washington, D.C.-based American Principles Project, told legislators the bill would be seen as a “symbolic act.”
More…
Jim Sinclair’s Commentary
Maybe this is a joke, maybe it is not. We have seen the highest level of living by the average guy in the West. From here on, like Gross said, it is downhill. The only exception is those that profit from destruction, such as OTC derivative dealers still adding to the pile of WMDs.
Husband Down
A husband and wife are shopping in their local Wal-Mart.
The husband picks up a case of Budweiser and puts it in their cart.
‘What do you think you’re doing?’ asks the wife.
‘They’re on sale, only $10 for 24 cans’ he replies.
‘Put them back, we can’t afford them’ demands the wife, and so they carry on shopping.
A few aisles further on along the woman picks up a $20 jar of face cream and puts it in the basket.
˜What do you think you’re doing?’ asks the husband.
‘It’s my face cream. It makes me look beautiful,’ replies the wife.
Her husband retorts: ‘So does 24 cans of Budweiser and it’s half the price.’
HUSBAND DOWN!, HUSBAND DOWN!, AISLE 7
Jim Sinclair’s Commentary
QE to infinity for reason few understand.
U.S. Treasury Drew Down Its Cash Balance by $81.6 Billion in Just First 4 Days of March Monday, March 07, 2011
By Terence P. Jeffrey
(CNSNews.com) – The U.S. Treasury is depleting its cash at an accelerating pace, drawing down its cash balance by $81.6 billion in the just the first four days of March, leaving the federal government with only $108.9 billion on hand, according to the Daily Treasury Statement released Monday afternoon.
At the beginning of February, the Treasury had $349.1 billion in cash on hand, but spent that down by $158.5 billion during the month, ending February with only $190.6 billion on hand.
Were the government to continue to draw down its cash balance at the $20.4 billion-per-day rate that prevailed in the first four days of March, it would spend its way through its final $108.9 billion in little more than five days.
Under current law, the U.S. Treasury may only run the national debt up to $14.294 trillion. At the end of February, according to the Treasury’s Monthly Statement of the Public Debt, the total debt subject to this legal limit was $14.142331 trillion—just $151.669 billion short of the limit.
Had the Treasury not spent down the $81.6 billion in its cash balance in the first four days of this month and borrowed that money instead, it would have significantly reduced its remaining legal borrowing authority.
More…
Posted: Mar 08 2011 By: Jim Sinclair Post Edited: March 8, 2011 at 5:36 pm
Filed under: General Editorial
Dear CIGAs,
My take on the gold market is that the price only bounced off the $1444 Angel.
Inherently, this market is much stronger than most grasp.
The combination of peak oil and the world changing orchestrated uprisings in the Middle East guarantee the gold bull market is going higher for longer than people are willing to predict today. Further, there will be no 1980 collapse as gold becomes fully priced to balance the external debt of the USA.
Gold will find its way back into the monetary system attached to an international virtual currency that is not the US dollar. The connection will be via a broad measure of an M3 type world liquidity that is not convertible.
Take that concept for now and I will explain the connection mechanism going forward. Ounces and production will flatten the egomaniac short sellers in the juniors.
You can take that to your private bank, you acting as your own Federal Reserve.
Respectfully,
Jim
Cash balances decline rapidly at the Fed/silver and gold hold steady
Ted Butler, silver position limits make Wall Street Journal, thanks to 'Charlie Sheen'
Is JP manufacturing COMEX numbers so we sell?
Guest Post: The Driver For Gold You’re Not Watching
Submitted by Tyler Durden on 03/08/2011 19:19 -0500Global pension assets are estimated to be – drum roll, please – $31.1 trillion. No, that is not a misprint. It is more than twice the size of last year’s GDP in the U.S. ($14.7 trillion). We know a few hedge fund managers have invested in gold, like John Paulson, David Einhorn, Jean-Marie Eveillard. There are close to twenty mutual funds devoted to gold and precious metals. Lots of gold and silver bugs have been buying. So, what about pension funds? According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector. Now here’s the fun part. Let’s say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases. If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward.
You won't sell gold but spend it, Turk tells King World News
Sprott says silver will keep outshining gold
Jim Sinclair’s Commentary
Symbolic maybe. Damn smart, yes.
Currency bill backers want alternative to ‘paper dollar’ By Ladd Brubaker
Updated Mar 4, 2011 01:03PM
A bill that recognizes U.S. gold and silver coins as legal tender and exempts their sale from the state capital gains tax passed the Utah House Government Operations Committee Wednesday.
Supporters say HB317, introduced by Rep. Brad Galvez, R-West Haven, is a first step to creating an “inflation-proof” alternative to the “paper dollar.”
Larry Hilton, a local attorney and supporter of the “sound money movement,” said that “un-backed money” created by the Federal Reserve to stimulate the economy, is “hanging over us like the sword of Damocles waiting to just come down in an avalanche and destroy the value of our currency.”
While the bill says the use of gold and silver coin as currency would be voluntary, it requires the Legislature to study the “possibility of establishing an alternative form of legal tender,” and to come up with further recommendations for the 2012 session.
Jeffrey Bell, the policy director for the Washington, D.C.-based American Principles Project, told legislators the bill would be seen as a “symbolic act.”
More…
Jim Sinclair’s Commentary
Maybe this is a joke, maybe it is not. We have seen the highest level of living by the average guy in the West. From here on, like Gross said, it is downhill. The only exception is those that profit from destruction, such as OTC derivative dealers still adding to the pile of WMDs.
Husband Down
A husband and wife are shopping in their local Wal-Mart.
The husband picks up a case of Budweiser and puts it in their cart.
‘What do you think you’re doing?’ asks the wife.
‘They’re on sale, only $10 for 24 cans’ he replies.
‘Put them back, we can’t afford them’ demands the wife, and so they carry on shopping.
A few aisles further on along the woman picks up a $20 jar of face cream and puts it in the basket.
˜What do you think you’re doing?’ asks the husband.
‘It’s my face cream. It makes me look beautiful,’ replies the wife.
Her husband retorts: ‘So does 24 cans of Budweiser and it’s half the price.’
HUSBAND DOWN!, HUSBAND DOWN!, AISLE 7
Jim Sinclair’s Commentary
QE to infinity for reason few understand.
U.S. Treasury Drew Down Its Cash Balance by $81.6 Billion in Just First 4 Days of March Monday, March 07, 2011
By Terence P. Jeffrey
(CNSNews.com) – The U.S. Treasury is depleting its cash at an accelerating pace, drawing down its cash balance by $81.6 billion in the just the first four days of March, leaving the federal government with only $108.9 billion on hand, according to the Daily Treasury Statement released Monday afternoon.
At the beginning of February, the Treasury had $349.1 billion in cash on hand, but spent that down by $158.5 billion during the month, ending February with only $190.6 billion on hand.
Were the government to continue to draw down its cash balance at the $20.4 billion-per-day rate that prevailed in the first four days of March, it would spend its way through its final $108.9 billion in little more than five days.
Under current law, the U.S. Treasury may only run the national debt up to $14.294 trillion. At the end of February, according to the Treasury’s Monthly Statement of the Public Debt, the total debt subject to this legal limit was $14.142331 trillion—just $151.669 billion short of the limit.
Had the Treasury not spent down the $81.6 billion in its cash balance in the first four days of this month and borrowed that money instead, it would have significantly reduced its remaining legal borrowing authority.
More…
Posted: Mar 08 2011 By: Jim Sinclair Post Edited: March 8, 2011 at 5:36 pm
Filed under: General Editorial
Dear CIGAs,
My take on the gold market is that the price only bounced off the $1444 Angel.
Inherently, this market is much stronger than most grasp.
The combination of peak oil and the world changing orchestrated uprisings in the Middle East guarantee the gold bull market is going higher for longer than people are willing to predict today. Further, there will be no 1980 collapse as gold becomes fully priced to balance the external debt of the USA.
Gold will find its way back into the monetary system attached to an international virtual currency that is not the US dollar. The connection will be via a broad measure of an M3 type world liquidity that is not convertible.
Take that concept for now and I will explain the connection mechanism going forward. Ounces and production will flatten the egomaniac short sellers in the juniors.
You can take that to your private bank, you acting as your own Federal Reserve.
Respectfully,
Jim
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![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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