Gold closes at $1782.40/silver approaches $40.00/Germany rejects Eurbond solution

Harvey Organ, Tuesday, August 16, 2011

Gold closes at $1782.40/silver approaches $40.00/Germany rejects Eurbond solution

Astounding FOX NEWS and CNN footage... networks disgrace themselves over Ron Paul
 
This is a "forward to everybody" video... it displays how the major networks have zero integrity or credibility now. 

The media blackout of Ron Paul's success in Iowa

 

 

"First they ignore you, then they ridicule you, then they fight you, then you win."

--    Mohandas Karamchand Gandhi

Record Number Of People Say They Are Paying More For Groceries Now Than Ever Before

Somehow even as all that deflation in home prices continues, like perfectly joined communicating vessels, countervailing inflation continues seeping into pretty much every other aspect of society. But don't take our word for it, (or even gold's, which is just under all time record notional highs): according to Rasmussen, "Americans nationwide continue to lose faith in the Federal Reserve Board to keep inflation under control, with the number who say they are paying more for groceries now at an all-time high." Specifically, "93% of adults report paying more for groceries now than they did a year ago, the highest finding to date. Only four percent (4%) say they’re not paying more for groceries now compared to a year ago.  Prior to the latest results, the number that said they are paying more for groceries ranged from low of 75% in April 2010 to a high of 91% in May of this year." However, since many of these same adults are transferring intangible "savings" from their non-payable mortgage check courtesy of a home market that has now ground to a halt for over 6 months, aka squatters rent, to pay for staples, few really mind. They just like to bitch and moan about it because it means fewer Apps downloaded for the iPad.

 

Switzerland mobilizes for race to the bottom of the currency heap

 

 

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Hedge fund SAC puts $628 million into gold ETF options

Watch them expire worthless a day before gold's next explosion.

 

In The News Today

August 16, 2011, at 2:23 pm
by Jim Sinclair

You Haven’t Seen Anything Yet

August 15, 2011, at 2:51 pm
by Jim Sinclair 

My Dear Extended Family,

We have to admit $1764 is a significant level for gold. Above that level and the $1800 plus recent high comes into focus. Above that level the hyperbolic potential of the gold price comes into focus.
Some of the finest minds in gold anticipate a very short but brutal reaction in price. The dollar market seems to not agree with a gold correction here.
Market wise, the Fed has thrown the US dollar into the wind. Under .7400 the dollar denies a reaction in gold at these levels.
When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase that has given you prices in excess of $1650. $1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties. Because $1764 is such a significant number, you can expect one of the more serious price battles before the price departs to Alf Fields’ and Armstrong’s predictions.
To sum up the situation, you haven’t seen anything yet.

Regards,
Jim

Jim Sinclair’s Commentary

Ever ask yourself what the Euro would be worth without its worst offenders? The answer is not less.

Eurobond solution to crisis ruled out by France and Germany Monday, August 15, 2011
THE GERMAN and French governments are set to rule out eurobonds as a solution to the euro zone debt crisis, despite renewed pressure before a meeting between Chancellor Angela Merkel and President Nicolas Sarkozy in Paris on Tuesday.
This is likely to be welcomed by Minister for Finance Michael Noonan, who last week stated his preference for a system of guarantees to be put in place that would allow Ireland to access global bond markets again at competitive rates of interest.
Wolfgang Schäuble, German finance minister, told Der Spiegel magazine that Berlin remained opposed to such a policy of introducing eurobonds.
“I rule out eurobonds for as long as member states conduct their own financial policies, and we need different rates of interest in order that there are possible incentives and sanctions to enforce fiscal solidity,” he said.
French officials also played down speculation that the subject would be raised at the meeting. “Eurobonds would require a much more determined integration of budgetary policy,” said one official.
“We do not have that today. It could be a long-term project, but you cannot have eurobonds and at the same time national economic and budgetary policies.”

More…

Jim’s Mailbox

August 16, 2011, at 2:05 pm
by Jim Sinclair 

The Scramble To Hold Cash Assets  
CIGA Eric

Banks are still scrambling to hold cash assets. Unfortunately, the trends scream warning since early to mid 2011 remain unperturbed in August
A breakdown of bank credit at commercial banks reflects lackluster business loan creation, a struggling real estate market, a slow decay in consumer spending, a surprising scramble to hold cash assets. The scramble to hold cash assets in excess of the 1980-1981 and 2008 crisis levels screams
The spike in cash assets is most noticeable.
Cash Assets 12-Month Change (CASH12LN) And Percentage of Total Bank Credit (%TBC)
Real estate and consumer loans are contracting. This is a major concern for a consumption-driven and housing-dependent economy.
Real Estate (RE) and Home Equity (HE) Loans Year-over-Year Change For All Commercial Banks
Consumer (CL) and Credit Card (CC) Loans Loans Year-over-Year Change For All Commercial Banks
Business and commercial loans (BL loans) have been slowly recovering since 2010. Unfortunately, they represent less than 14% of total credit creation in 2011. BL Loan accounted for nearly 17% total credit creation as the debt crisis unfolded in 2008.
Business & Commercial, Real Estate, and Consumer Loans Year-over-Year Change For All Commercial Banks

Source: federalreserve.gov

More…

On the front line of the riots with the police A police officer, whose anonymous blog has captivated thousands, tells of his shock, exhaustion and terror after confronting the mob. 


Here is an interesting companion piece: Britain’s in crisis: the real causes of chaos on streets.

Man Pretends To Be Hank Paulson To Make Fake $353,000 Mortgage Payment To Citi, Succeeds

Perhaps the most surreal fact about the case of 35 year old Bryan Gardner who back in 2009 sent CitiMortgage a $353,000 money order "drawn on the account of the 'Secretary of the Treasury Hank M. Paulson, Jr." in order to satisfy the final payment for a property in Bowie, Md, is that.... he succeeded. Fox Biz has more: "CitiMortgage erroneously accepted the document and credited Gardner's mortgage account in full," according to a Secret Service affidavit. Within months, Gardner sold the property for $254,900 and then "distributed the proceeds to others," according to public records and the Secret Service affidavit. Investigators believe Gardner may have initially secured the mortgage under false pretenses. Through a spokesman, an FBI agent who investigates mortgage fraud said he was surprised the scheme succeeded, and a former Justice Department official who helped lead fraud enforcement efforts in the wake of the financial meltdown agreed, calling the approval of the money order "bizarre." Perhaps what is more bizarre is just how a plan like this, which a 3 year old could concoct, but not even a 3 year old would be dumb enough to believe it would fly, actually succeeded. Just how big is the pool of "unclaimed" cash on deposit at CitiMortgage is there was i) no actual account was debited for the full amount and ii) nobody noticed that the Treasury department was paying off a private mortgage.

Guest Post: Letter To George Washington, Regarding Paul Krugman

Hi GW, It’s been so long! I’ve been skiing like a madman down here in Chile—but I did catch something you wrote, which I’d like to comment on, now that a blizzard has hit the slopes and I’m stuck inside with not much to do. You wrote a post yesterday, picked up by Zero Hedge and others, pointing out that Paul Krugman is advocating war as a fiscal stimulus solution. You pointed out that this position he holds is not only blatantly immoral, it is a position Krugman seems to have no problem openly pushing—your unspoken implication being that this is disastrous, considering how influential Krugman is in major policy circles. With regards to K. pushing for war as the ultimate Keynesian economic solution: I hate to say “I told you so”—but in this case—I told you so! (Cheers, mate.)