Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

from The Economic Collapse Blog:

Are you willing to bet against three of the wealthiest men in the entire world? Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down. Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter. So will the euro plummet like a rock? Will the price of gold absolutely soar? Well, if a massive financial disaster does occur both of those two things are likely to happen. The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money. The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions. Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don’t. The fact that they are all behaving in a consistent manner right now should be alarming for all of us.
Read More @ TheEconomicCollpaseBlog.com

John Ralston Saul: The Collapse of Globalism

from AgendaStevePaikin:

Hathaway – This Financial System Is Now In Its Final Stages

from KingWorldNews:

Today four-decade veteran John Hathaway told King World News, “We’re in the final years of what’s been happening since the 1930s.” The prolific manager of the Tocqueville Gold Fund also said, “Needless to say, the mainstream media has no clue about it.” Hathaway also warned the current system is “… now in its final stages.”
Here is what Hathaway had to say: “I continue to believe that gold is at the end of its year long correction, and nobody gets it. From my point of view the setup couldn’t be any better than that. There is absolutely no volume in the mining shares, and yet gold already made a low in December of last year. Gold has held that low and the gold shares made their low in the middle of May.”
“The XAU bottomed around 140 and we are at 160 now. If you take that time interval, from the middle of May until now, gold is up 5%, but the mining shares are up about 15%. So gold stocks are beginning to outperform the metal. In my experience this has always been a very bullish configuration.
You read something every day about QE…
John Hathaway continues @ KingWorldNews.com

Embry – Apple, Gold, Manipulation & Financial Implosion

from KingWorldNews:

Today John Embry told King World News, “… the market cap of Apple is now greater than three times that of all of the world’s publicly traded gold and silver equities.” Embry also said, “Irrespective of the back and forth in the gold market, in a covert fashion, the Western central banks have been acting much like they did back during the London Gold Pool in the 60s … the Western central banks can only get away with this for so long, before they are completely overrun.”
Here is what he had to say: “I’m focused on the better silver price, which sort of came out of left field. Thirty-eight times silver was recently beaten back on a minute by minute basis at the $28 level. Every time it went though $28 it was jammed back down. So for silver to breakout today and make a run towards $29 is significant, and very promising going forward.”
“$29 is the major breakout and I still believe silver hit new all-time highs before the year is out. In the meantime, on a break above $29, with enthusiasm and volume, I think that signals the end of the short-term bear market we have been experiencing for the last 16 months. That means the bear phase will have ended and a new bull move will now begin.
The gold market is also extremely interesting….
John Embry continues @ KingWorldNews.com

Hyperinflation Is Not Inevitable (Default Is)

by Gary North, Mises:
Hyperinflation is always a possibility for any national government or central bank. If a national government is running massive deficits, it can call on the central bank to buy treasury bills or treasury bonds with newly created money. This digital money is transferred to the treasury, which then spends the money into circulation.
There have been cases of hyperinflation in the past that have become legendary. The most famous of all of these hyperinflations is Germany from 1921 through 1923. Simultaneous with that hyperinflation was a hyperinflation in Austria. These were not the worst cases of hyperinflation in history, but they were the worst cases in industrial societies. The worst case was Hungary for two years immediately after World War II. The second-worst case took place a few years ago in Zimbabwe. Both were agricultural nations.
No other nations in western Europe have ever experienced anything like the hyperinflations of Germany and Austria in the early 1920s. Their currency systems were completely destroyed. Farmers were able to pay off debts that had been accumulated prior to World War I by selling one egg and handing the money over to the creditor. This of course destroyed the creditors. It is generally believed that the middle class in both Germany and Austria suffered enormous losses. They had been creditors.
Read More @ Mises.ca

HEADS UP: NORAD Anti-Terror Exercises Planned for D.C. Skies

Anti-Terror Exercises Planned for D.C. Skies: NORAD announces exercises as a warning for public
by Bill Gertz, Free Beacon:
Air Force and Coast Guard aircraft will fly “intercept and identification” exercises over Washington tonight as part of efforts to prevent suicide aircraft attacks or other threats to the capital, a military spokesman said.
The latest exercise of what the North American Aerospace Defense Command calls “Falcon Virgo” involves Civil Air Patrol Cessna-182 light aircraft and a Coast Guard HH-65 Dolphin helicopter between 11:30 p.m. Monday and 5:30 a.m. Tuesday, NORAD said in a statement.
“We want to make sure people seeing these planes aren’t concerned,” said NORAD spokesman John Cornelio.
“One of the reasons we put out notice of the exercise is so that anyone seeing a military aircraft in close proximity to a civilian aircraft will know that this is a controlled and carefully planned NORAD live exercise,” he said.
Read More @ FreeBeacon.com

Shhhh…It’s Even Worse Than The Great Depression

from Across the Street:
According to Wikipedia, Narcissistic personality disorder (NPD) affects one percent of the population and has little to do with looking at yourself in the mirror. It has a lot to do with unrealistic fantasies of success, power and intelligence. Some NPD sufferers become cult leaders or mass murderers, the rest become economists and policy-makers. Despite having a highly elevated sense of self-worth, narcissists have fragile self-esteem and handle criticism unpredictably, so let’s keep this to ourselves….
Velocity of money is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what ”this” is and whether or not anybody should be using the word “recovery” with a straight face.
In just four short years, our “enlightened” policy-makers have slowed money velocity to depths never seen in the Great Depression. Hard to believe, but the guy who made a career out of Monday-morning quarterbacking the Great Depression has already proven himself a bigger idiot than all of his predecessors (and in less than half the time!!). During the Great Depression, monetary base was expanded in response to slowing economic activity, in other words it was reactive (here’s a graph) . They waited until the forest was ablaze before breaking out the hoses, and for that they’ve been rightly criticized. Our “proactive” Fed elected to hose down a forest that wasn’t actually on fire, with gasoline, and the results speak for themselves.
Read More @ Acrossthestreetnet.wordpress.com

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Buffett Joins Team Whitney; Sees Muni Pain Ahead As He Unwinds Half Of His Bullish CDS Exposure Prematurely

from Zero Hedge:
Just under two years ago, Meredith Whitney made a much maligned, if very vocal call, that hundreds of US municipalities will file for bankruptcy. She also put a timestamp on the call, which in retrospect was her downfall, because while she will ultimately proven 100% correct about the actual event, the fact that she was off temporally (making it seem like a trading call instead of a fundamental observation) merely had a dilutive impact of the statement. As a result she was initially taken seriously, resulted in a big hit to the muni market, only to be largely ignored subsequently even following several prominent California bankruptcies. This is all about to change as none other than Warren Buffett has slashed half of his entire municipal exposure, in what the WSJ has dubbed a “red flag” for the municipal-bond market. Perhaps another way of calling it is the second coming of Meredith Whitney’s muni call, this time however from an institutionalized permabull.
Read More @ Zero Hedge

Ellis Martin Report with Andy Hoffman–Saving in Gold and Silver for Collapse

from opportunityshow:

Gerald Celente: The Nature of Collapse and What’s Destroying This Nation

from Trendsjournal:

Small Banks Forced Out By Shadow Banks Under New Rules

from Silver Vigilante:
Dick Bove has garnered headlines again with this startling, stale revelation: “Increased regulations are making it tougher on banks and the consumers they serve but easier on the financing system that helped create the 2008 credit crisis.”
VP of equity research at Rochdale Securities, Bove outlined several aspects the government has “targeted” in the banking industry and how they were not affecting their official objectives. Instead, the new regulations helped the “shadow banking system.”
“It has been my strong belief that the United States government and its agencies have embarked upon a series of actions that have created disarray in every sector of the consumer financial markets,” Bove stated. “Make no mistake, consumers are paying more for less. Winners will emerge in this period of disarray.”
Dudd-Bank – ahem, Dodd-Frank – came to fruition as a melange of sweet reforms to the flowing blood of Wall Street, fresh off their floating spaghetti-and-meatballs in the sky subprime mortgage industry bets.
Read More @ Silver Vigilante

"So You Say You Want A Revolution" - The Real New Normal

This month marks the 50th anniversary of Thomas Kuhn’s The Structure of Scientific Revolutions, one of the landmark philosophical texts of the last century.  The central thesis of the book is that science advances in fits and starts, clustered around the advent of new 'Paradigms' - a term that Kuhn introduced in the book and much of academia subsequently coopted as their own.  This was a novel thought for the times, since the conventional philosophy held that science advanced through the ages in plodding but rigorous steps.  Kuhn’s observation about science is equally applicable to capital markets, for the range of 'Paradigm shifts' underway goes a long way to explaining everything from why companies refuse to invest to why earnings multiples on U.S. stocks remain so low.  Today, in celebration of Kuhn's opus, ConvergEx's Nick Colas offers up a list of the 'Top 10 Paradigm Shifts' currently underway; and notes that new paradigms don't often have as much to them as the old ideas they replace.  They are often actually inferior.  Over time they get their bearings, yes.  But the transition is rough.

On "Intellectual Monocultures", Record Soybean Prices And Absolute Returns

Back on March 7, 2011, when discussing the phenomenon of Zero Hedge, prominent tech blogger and recent Bloomberg paid content expansion Paul Kedrosky had this to say: "After prolonged exposure [to Zero Hedge] I have to turn off my wi-fi not to sell all my U.S. dollars for physical gold, start an anti–Goldman Sachs blog and buy a Kansas soybean farm protected by a moat. But here is the crazy thing: Zero Hedge — a morning zoo of pessimistic financial blogging — is fun. Granted, you (O.K., I) can't read it for long without the aforementioned soybean-farmer effect, but the downbeat site has found an entertaining niche at the intersection of The X-Files, finance and tireless anti–Goldman Sachs–ishness. So while I don't read Zero Hedge regularly — it's too bearish, too conspiratorial and too much of an intellectual monoculture — I like knowing that it exists." This is all poetically ironic. Because in the 15 months since this statement made the public record, gold has returned 13.24% (after hitting an all time record high) while Goldman has declined by 33.85%. But most entertaining is that moments ago soybean futures just hit an all time high, and are now up 35.89% since March 7, 2011.

In The News Today

August 20, 2012, at 5:21 pm
by Jim Sinclair

My Dear Friends,

I am in the process of putting together a legal team to specialize in redress concerning the strategy of "Short and Distort." There will be both lead legal counsel and attorneys at counsel.
If you know of any attorney licensed to practice in New York with a firm track record of success in fraud, common commercial practice and securities law, I would appreciate the recommendation.
Thank you,
Jim



Jim Sinclair’s Commentary

2.2 trillion dollar gap in retirement funds?

New rules expose bigger funding gaps for public pensions By Michael A. Fletcher, Published: August 16
Already-strapped state and local governments are coming under increasing pressure to reduce pension benefits or increase taxpayer contributions that help pay for them because of new rules that would require them to report those obligations more honestly, advocates say.
The latest rules come on line from the bond-rating firm Moody’s at the end of this month. They are projected to triple the gap between what states and municipalities report they have in their funds and what they have promised to pay out to retirees. That hole would stand at $2.2 trillion.
For the worst-off cities, the new pension debt calculations could mean bond rating downgrades and increased borrowing costs when localities try to raise money for new projects, Moody’s has warned.
The accounting changes themselves will not force policymakers to alter how they fund pensions. But finance experts say that by simply highlighting greater funding gaps, the rules will intensify pressure on state and local governments to allocate more of taxpayers’ dollars to their pension funds. More likely, public workers may have to contribute more to their retirements or see promised benefits curtailed, measures that have already been implemented in more than 40 states.
Virginia and Maryland have cut benefits for new hires while preserving retirement packages for current employees.
“It is hard to believe that higher numbers would not put increased pressure on governments to deal with this,” said Scott D. Pattison, executive director of the National Association of State Budget Officers. “If you only have so many dollars, if you are going to put more into pensions, that means less for other things.”
More…




Jim Sinclair’s Commentary

A note to your investment vehicle on the direct registration system:
1. All US listed companies are required to offer direct registration.
2. There is no charge to companies anywhere to be part of direct registration.



Jim Sinclair’s Commentary

Here is an interesting discussion in Europe, not in Western MSM.

Germany Considers Holding EU Referendum By Florian Gathmann and Philipp Wittrock
A bottle of liquor and a half-empty glass stand on the table next to Angela Merkel, who is studying a confidential document with a sullen expression. "How to Break Up the Euro," is the title.
That, at least, is how Britain’s Economist imagines the chancellor’s predicament these days. "Tempted, Angela?" is the headline on the cover of the current issue.
Indeed, the chancellor is in a tricky position at the moment, as she fails to get the euro crisis under control. Of course, theEconomist’s notion of a secret plan to break up the euro zone is purely fictitious. But it fits into the current debate, where more and more politicians from Germany’s coalition government are talking about radical steps to solve the euro crisis.
Officially, though, Merkel’s line is that she wants more Europe, not less. In the chancellor’s bid to save the common currency, she is willing to go to the very limits of what is permissible under the German constitution. That was made clear by her support for the permanent euro rescue fund, the European Stability Mechanism (ESM), and her pet project, the fiscal pact. But Merkel still wants more. "We need a political union," she recently said on German public television station ARD. "That means we have to give up further competencies to Europe, step by step, in an ongoing process."
More…




Jim Sinclair’s Commentary

The majority of CIGAs cannot be bothered with the modest work it takes to protect themselves. There is nothing I can do to change the attitude of readers. However, since I care, the following is the exact plan of what to do if your broker/clearing house/country etc. agent declares bankruptcy.
It is quite simple:
All you need to do is enter on the left red dot and exit on the right red dot. Then you MIGHT get some of your money back.




Jim Sinclair’s Commentary

Here is an example of our planner planning for improved employment figures.

Click here to watch the video…



Jim Sinclair’s Commentary

The least used legal document in the United States is a warrant.

Police allowed to track cell phones in US without court warrants Published: 18 August, 2012, 00:06
The US Circuit Court of Appeals ruled that Americans have no reasonable expectation of privacy when carrying cell phones, allowing police to track GPS signals without a warrant or probable cause.
The decision came the court ruled in United States v. Skinner that the Drug Enforcement Administration (DEA) abided by the Constitution by using a drug runner’s cellphone data to track his location and determine his identity.
Melvin Skinner, also known by his false name as “Big Foot,” was a drug mule with more than 1,100 pounds of marijuana in his Texas motorhome.
The throwaway mobile phone he was using was registered under a false name, so agents did not know the identity of the drug trafficker.
By using GPS data from his disposable phone, police learned that “Big Foot” was planning to deliver a large shipment of marijuana from Arizona to Tennessee in his mobile home.
In 2006, agents obtained a court order – but not a warrant – to track the disposable phone’s location using its GPS.
After tracing the phone’s exact location, police dogs discovered the mobile home and indicated a presence of drugs. “Big Foot” was arrested and charged for drug trafficking and conspiracy to commit money laundering.
More…

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