'Only a Matter of Time' Before Greek Default: Analyst Bove

Greece is unable to repay its debts, according to the banking analyst, and given that the euro zone banking system has yet to mark sovereign debt holdings to market, many banks will be forced to raise new capital.

 

 

Global Selloff to Continue on EU Debt Crisis: Experts

Major Asian stock markets dropped between 2 and 3 percent on Monday, and a number of analysts and investors tell CNBC they forecast a further global selloff given a lack of clear policy solutions from Europe.

 

 

ES Futures Retest Overnight Lows as European Credit Opens Ugly

After a brief push back above Friday's lows, ES is back down to the early overnight lows (-17) just in time for the opening of Europe. Early runs on ITRX Main show +10bps at 198/200bps, XOver breaking 800bps (+35bps), and SovX +23bps to 333bps - not pretty (and worse than simply catch up to late Friday's demise). Financials continue to bear the brunt but non-financials are getting dragged out now more and more.

 

 

UK Banks Should Ring-Fence Retail Divisions: Commission

The UK's banks should ring-fence their retail operations from riskier investment banking and increase their capital requirements beyond what is required by the Basel III directives, a much-anticipated report by the Independent Commission on Banking (ICB) said Monday.

 

FTSE, DAX and CAC Seen Sharply Lower on Debt Fears

European stocks are expected to fall sharply at the market open on Monday amid renewed fears about the euro zone debt crisis.

 

 

Gene Arensberg: Nothing paper can be a safe haven

 

 

QB Asset Management's report on gold's hidden value and price suppression

 

 

Gold Is Never Easy

September 11, 2011, at 9:59 pm
by Jim Sinclair in the category General Editorial |  Print This Post |  Email This Post

Dear Extended Family,

I am on the road once again. I am one hour from departure to Tanzania. A great deal of rescheduling had to be made but it all worked out. My Toronto meeting with a high level delegation from Tanzania was postponed because of the national tragedy involving the sinking of a ferry.
Those that I had planned to see in Toronto will be in Dar. At the same time a group of friends are waiting for me in Geita. Communication is good so expect to hear from me.

Gold is never easy is and only going to get harder. The algorithms are fighting the cash market as margins rise. It is only natural that the cash market takes on more strength when margin is headed to cash anyway.

There is simply no fix to the mess that Western finance is in. No games of twist will influence banks to lend on rationale terms, if at all. QE3 is unavoidable in both the USA and Euroland. The managers of Western finance have lost control and kicking the can down the road takes a force ten times as strong as the one it took only one year ago.

The strength of the dollar from the recent low is but a mirror image of the weakness in the euro from the recent high. The safest of safe havens is in gold.

Recent emails to me have asked for help even in a cash position because the volatility in the gold market is ruining some CIGA’s sleep.

Survival has never been easy. Our founding Father when they signed the Declaration of Independence put not only their wealth but also their lives on the line. Freedom of any kind, even financial, requires courage.

If you are losing your grip due to the madness of the market you have two choices. You can trust Monty, Trader Dan, Eric, and Kenny who firmly believe that there is no top in gold or you can sell down to your courage level.

Once you have decided stop thinking about it and stop watching every tick. That is sure to drive you crazy. Whatever course of action you select finishes that mental debate.

I am in Africa taking care of business and friendships, but standing right beside you in spirit. There is more to that than most understand.

Respectfully,

Jim

 

 

In The News Today

September 11, 2011, at 9:45 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Senate Approves $500 Billion Increase in Borrowing Authority
By Corey Boles
September 8, 2011, 9:58 PM ET
The U.S. Senate, in an unusual procedure, cleared the way Thursday for the U.S. to lift its borrowing authority by $500 billion to $15.19 trillion, enough to keep the support federal government borrowing through late January or early February.
The action came under an unusual legislative procedure spelled out under the August agreement to raise the U.S. debt ceiling and avoid a U.S. credit default. In a 52-45 vote, the Senate blocked an attempt by Republicans to slow down the process that will result in the $500 billion debt-ceiling increase.
The increase stems from a deal between Congress and the White House, finalized last month, that spells out how the borrowing limit would be increased by $500 billion. Under the process, lawmakers in both the House and Senate must vote on a resolution of disapproval against the increase in the borrowing limit. President Barack Obama would then have to veto the resolution of disapproval, and Congress would then vote to try and override that veto.
The complicated procedure, designed by Senate Minority Leader Mitch McConnell (R., Ky.), would allow an increase of the borrowing limit while allowing most Republicans to vote against such an increase.
There was a twist in this scenario Thursday evening, however. Democrats held firm, rejecting the resolution of disapproval, thereby speeding the process and increasing the borrowing limit immediately.
Only Sen. Ben Nelson (D., Neb.) broke from his party to vote with the Republicans in trying to move forward with the measure.

More…

 

 

Jim’s Mailbox

September 11, 2011, at 9:43 pm
by Jim Sinclair in the category Jim's Mailbox |  Print This Post |  Email This Post

Hi Jim,

The weekend news on Greece sounds foreboding.
Common sense dictates that gold should be slicing through all resistance with the speed of lightening. But that’s assuming there’s any common sense left on the planet.

Best regards,

CIGA Black Swan


Dear Black Swan,

It will once this violent chop resolves itself.

Regards,
Jim

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