Saturday, September 15, 2012

The Global Central Banker Directory


If there's printing going on in your neighborhood
Who you gonna call?
CENTRAL BANKERS!
If a loaf of bread costs a trillion bux
Who you gonna call?
CENTRAL BANKERS!



On Bernanke's Columbus-Like Voyage To The End Of The Monetary Policy World

Whether the optics of a jobs-related target for the Fed's QEternity are election-based public relations, from-the-heart sentiment of an ivory tower academic neck-deep in the reality of his failed ethos, or well-intentioned more-of-the-same Krugmanite 'we need a bigger boat' print til-we-stink policy; it is relatively clear that the Fed has changed course. The longstanding problem at the Fed has been that while each policymaker more or less agreed that guiding policy by a rule made sense, they could not collectively agree on the rule. Morgan Stanley's Vince Reinhart notes perfectly that at its September meeting, the Fed effectively evaded the issue by setting QE off in a general direction, much in the same way Columbus pointed his three ships West and expected eventually to land in India. The history books admire the audacity of a man with a vision. Columbus sailed in the direction toward the known world’s end. Of course, he also sailed further than expected and landed on a completely different continent than planned. If the Fed has not acted consistently over the past few meetings, how will market participants infer future action?



Visualizing Japan's Debt Crisis

From the largest Japanese pension fund unwinding its JGB holdings to Kyle Bass' infamous 'debt-saturation Japan Trade' and Dylan Grice's original Japan funding crisis discussion, the nation - now facing Chinese dis-satisfaction over the recent island-purchase - continues to stagger with its Keynesian-endgame heading to a Koo-nesian disaster. The following info-graphic, via Informed Trades, provides everything the savvy investor needs to know about Debt/GDP, balance of payments, energy imports, demographics, and currency debasement.



From The Last Sane Person At The Fed: "More Easing Will Not Lead To Growth, Would Lead To Inflation"

There are two key sentences which explain why there is now only sane voice left among the FOMC's voting members (recall that back in December 2011 we explained that more QE was only a matter of time now that the Doves have full control). From Jeffrey Lacker: "I dissented because I opposed additional asset purchases at this time. Further monetary stimulus now is unlikely to result in a discernible improvement in growth, but if it does, it’s also likely to cause an unwanted increase in inflation.... Channeling the flow of credit to particular economic sectors is an inappropriate role for the Federal Reserve. As stated in the Joint Statement of the Department of Treasury and the Federal Reserve on March 23, 2009, 'Government decisions to influence the allocation of credit are the province of the fiscal authorities.'" That, however, is no longer the case, as the only real branch of 'government', accountable and electable by nobody, going forward is that located in the Marriner Eccles building, named ironically enough, for the last Fed president who demanded Fed independence, and who was fired by the president precisely for that reason. It is in this building where the central planners of the New Normal huddle every month, and time after failed time, hope that "this time it will be different" and that wealth can finally be achieved through dilution of money.



Meanwhile In Beijing: "For The Respect Of The Motherland, We Must Go To War With Japan"


Anti-US protests sweeping across the entire Muslim world (which are continuing today), besieging, attacking and burning down US embassies, are not the only thing that the central banker policy vehicle known as "the markets" have to ignore in the coming days and weeks. Cause here comes China: "Thousands besiege Japan's embassy in Beijing over Tokyo's assertion of control over disputed islands in East China Sea." And China is not happy: "For The Respect Of The Motherland, We Must Go To War With Japan." Sure enough, where would the US be if the focal point of this escalation in militant anger - the Senkaku Islands - was not merely the latest expression of Pax Americana, and America's national interests abroad.


Anti-Austerity Protests Return To Spain

In two weeks the Greek economy will once again suffer the consequences of European indentured servitude when it two main labor unions will grind the system to a halt with a general strike against planned austerity measures on September 26. Spain, however, can't wait, and is already out in the streets (video of today's protest can be found at BBC). From Al Jazeera: "Thousands of Spanish anti-austerity protesters have taken to the streets of Madrid to rally against government cuts aimed at cutting the public deficit. The demonstrators assembled in groups at noon on Saturday along the central streets of the capital city in a protest against spending cuts and tax rises. The developments came as Luis de Guindos, economy minister, said that Spain's borrowing costs still do not reflect the country's economic and fiscal adjustment, despite their recent easing." The key word uttered that makes this whole protest a moot point: "referendum" - silly Europeans don't seem to get quite yet that Democracy has been dead for decades, supplanted by kleptofascist globalization with just enough handouts for the lower and middle classes (usually in terms of welfare promises) to keep everyone happy. Actually make that silly Americans and Asians too.



A French Rebellion Against Unelected Bureaucrats: “European Coup D’Etat And Rape Of Democracy”

testosteronepit
09/15/2012 - 12:12
“The worst enemy of France and of all nations that aspire to prosperity and liberty.”



Here’s a peak at some of the stories the mainstream mafia media & blogs may be publishing in the very near future…


John Embry Expects a Silver Price Explosion Driven by Physical Shortage

from Gold Silver Worlds:

We are a long-time fan of John Embry, as we consider him one of the most experienced people in the precious metals world. In his latest interview on King World News, he confirmed once again what is happening particularly with silver: manipulation of silver prices is still going on but signs of shortage in physical silver are increasing by the day and hence a silver price explosion is almost unavoidable.
Manipulation vs opportunity
Just like several other precious metals experts, John Embry is confirming the ongoing suppression of the gold and silver prices. This is what he had to say on King World News in yesterday’s interview: “Two days before the QE announcement they dropped the price of silver about $1.50 in a nanosecond. It’s the same games being played by the same people, and it’s going to end horribly because all the manipulation is doing is creating wonderful buying opportunities for the Chinese, the Russians, and the rest of the central banks that know full well what’s going on. “
Yes indeed, we have reported on this website numerous times how manipulation has created buying opportunities and who the ones were that made use of these opportunities. The Eastern countries and non-G6 Central Banks have been accumulating tons of gold. Besides we reported recently that smart money has been accumulating gold on the dips down at the $1,500 level. On an even more fundamental level, we reported that China could be considering to back its currency up by gold.
These are all fundamental evolutions in the gold & silver markets that shouldn’t go unnoticed for anybody, as they are extremely meaningful.
Read More @ GoldSilverWorlds.com


Your Absolutely 100% False Flag Causing Criminal Gov’t: FBI Promised ‘martyrdom payments’ to Virginia Man For SUICIDE BOMBING

by Matthew Barakat, Washington Guardian:
McLEAN, Va. (AP) — An FBI sting operation promised “martyrdom payments” of up to $1,000 a month to a Moroccan immigrant who eventually volunteered to kill himself in a plot to bomb the U.S. Capitol, according to court papers.
Amine El-Khalifi, 29, who was living in Alexandria as an illegal immigrant until the time of his arrest in February, will be sentenced Friday in federal court in Alexandria. He pleaded guilty in June.
In court papers, El-Khalifi’s lawyers said their client received more than $5,700 in living expenses from undercover FBI agents during the six-month investigation. He was also promised that his parents would receive what the lawyers describe as “martyrdom payments” of up to $1,000 a month after he completed the attack.
“Mr. El-Khalifi believed that one of his most important obligations was to care for his mother and father. Failing to do so would, again, meet with God’s disapproval. Without the promise of the ‘martyrdom payments’ to his parents, Mr. El-Khalifi would have had great difficulty completing the mission as he would have been shirking his responsibility to ensure their well-being,” federal public defender Kenneth Troccoli wrote in court papers.
Read More @ WashingtonGuardian.com


Louis Farrakhan Shares Shocking Info: On Ron Paul Exposing The Federal Reserve & the International Banksters

[Ed. Note: For the record, we are no more anti-Semitic for sharing this speech than we are anti-American for sharing information about the burgeoning police state.]
from RonPaulCC2012 :


Have We Forgotten The Humanitarian Articles Of The Geneva Convention?

Latest move represents huge transfer of wealth from the middle class to the elite
by Donna Anderson, Info Wars:
It would be naïve to assume that no country has ever violated the Geneva Convention and it would be suicidal to think that war-time behaviors will change anytime in the near future. But evidence indicates, and witness testimony proves, that the US government is intentionally targeting civilians in Pakistan, including women and children. Is violating the Geneva Convention only morally reprehensible when it happens on your home turf?
Americans typically think of the Geneva Convention in relationship to treatment of prisoners of war. Yet, the articles of the Fourth Geneva Convention (1949) established protections for the wounded, and for civilians in and around a war zone. Special provisions were also included to protect the people responding to the scene who were there to collect and care for the wounded.
A video created by Saad Ali, a contributor at WeAreChange.org, exposes the fact that the US government is currently using unmanned aerial vehicles, or drones, to attack Pakistani civilians, including children and first responders attempting to give aid to victims, a clear violation of the Geneva Convention.
Read More @ InfoWars.com


MSNBC: Amazingly RARE Truth Spoken About U.S. Relationship With Israel


QE3, Silver Report, Commodities & USD



10 Shocking Quotes About What QE3 Is Going To Do To America

from End of the American Dream:

Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to be absolutely nightmarish.  The Federal Reserve is hoping that buying $40 billion worth of mortgage-backed securities per month will spur more lending and more economic activity.  But that didn’t happen with either QE1 or QE2.  Both times the banks just sat on most of the extra money.  As I pointed out the other day, U.S. banks are already sitting on $1.6 trillion in excess reserves.  So will pumping them up with more cash suddenly make them decide to start lending?  Of course not.  In addition, QE3 is not likely to produce many additional jobs.  As I showed in a previous article, the employment level did not jump up as a result of either QE1 or QE2.  So why will this time be different?  But what did happen under both QE1 and QE2 is that a lot of the money ended up pumping up the financial markets.  So once again we should see stock prices go up (at least in the short-term) and commodities such as gold, silver, food and oil should also rise.  But that also means that average American families will be paying more for the basic necessities that they buy on a regular basis.  The most dangerous aspect of QE3, however, is what it is going to do to the U.S. dollar.  Most of the rest of the world uses the U.S. dollar to conduct international trade, and by choosing to recklessly print money Ben Bernanke is severely damaging international confidence in our currency.  If at some point the rest of the world rejects the dollar and no longer wants to use it as a reserve currency we are going to be facing a crisis unlike anything we have ever seen before.  The real debate about QE3 should not be about whether or not it will help the economy a little bit in the short-term.  Rather, everyone should be talking about the long-term implications and about how QE3 is going to accelerate the destruction of the dollar.
The following are 10 shocking quotes about what QE3 is going to do to America….
Read More @ EndoftheAmericanDream.com


QE3 Rips Into Reality

[Ed. Note: Think you can't make a difference? Linda got her start on You Tube with her morningmayan channel, now she's reporting for Infowars. Get involved, speak out, liberty starts with YOU.]
from TheAlexJonesChannel :
 
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Rising Middle East Violence a Precursor for US-Based Internal Combustion

by Anthony Wile, The Daily Bell:

Recent violence, or blowback if you will, throughout the Middle East is not surprising. Many in the mainstream media are attempting to portray the violent attacks, in particular the one against the US embassy in Benghazi, as the fallout from a recent film titled “Innocence of Muslims” that reflects poorly on Islam, to say the least.
Now, I admittedly haven’t seen the film, nor do I think it matters. To me, the casting of blame on a movie that is highly insulting to Muslims is convenient. The truth of the matter is that the forces behind American politics, and world politics for that matter, desire the chaos that is ensuing throughout the Middle East. The rise of a militant Islamic crescent will create an ongoing platform for the continued good fight of democracy against insurgent Al-Qaeda fighters – who hate us, or so we are told.
When asked about the Libyan and Egyptian Arab Springs during interviews with the Russian television network, RT, I stated that the rise of radical factions like the Muslim Brotherhood would be the result of the misguided protests being instigated by organizations like the Alliance of Youth Movements and the US State Department. But I also stated that was exactly what the West wanted. To see exactly what I had to say and how accurately that played out, take a quick look at these two videos:
Gaddafi Funds Frozen, Why New Dictators Will Be as Corrupt as the Old Ones
US Intel Agencies Involvement in Fomenting the Libyan Uprising and Why Gaddafi Will Not Survive
Read More @ TheDailyBell.com


Man Kicked Out of Paul Ryan Event For Speaking Truth Out of Turn

from matlarson10:




Warning! Catastrophic Financial Collapse, Dead Ahead

from crabbydogtrix:




CPM Group’s Jeff Christian on BNN on eve of gold and silver explosion: Go short

by Chris Powell, Secretary/Treasurer, GATA, GATA:

Dear Friend of GATA and Gold:
For some reason Jeff Christian, managing director of the metals consultancy CPM Group, long has been getting under the skin of certain GATA folks. But Christian has been a hero to your secretary/treasurer ever since his testimony at the March 25, 2010, hearing of the U.S. Commodity Futures Trading Commission, where he revealed that even the so-called “physical” gold and silver markets in London are mainly just paper shorting operations:
http://www.gata.org/node/8478
When Christian testified, gold was below $1,200 and silver was at $17. But his comments about the phoniness of the “physical” market inadvertently reinforced GATA’s urgings to investors in gold and silver to get out of mere paper claims and into real metal and to remove it from the bullion market and banking system. Whereupon the metals rose steadily over the next 18 months, peaking at $1,900 and $47, respectively.
On Monday this week Christian appeared on Business News Network in Canada and predicted that the U.S. Federal Reserve would announce no substantial bond monetization this week, that the Fed’s inaction would smash commodity prices, and that CPM Group had advised its clients to go short gold and silver:
Read More @ GATA.org


KWN Weekly Metals Wrap

from KingWorldNews:
The KWN Weekly Metals Wrap – We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my secret weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold and silver market price action.
Bill Haynes and Dan Norcini AUDIO INTERVIEW @ KingWorldNews.com


Paradigm Collapse

by David Galland, Casey Research:

After three full days of fairly intense Summiteering, I have reams of notes I could share with you, given sufficient time. As I don’t have that time, I’ll try to summarize just a few of the key points.
In no particular order…
  • The data confirms that the global economy remains in deep trouble. Not just “a little”‘ trouble, or “some” trouble – but trouble of the sort that comes along only every few generations. You know, WWII-level trouble – the sort of stories you’ll someday regale your great-grandchildren with. Of course, this rather dire view comes as no surprise to most dear readers. It should come as no surprise to anyone, at least anyone paying even the slightest attention to the steady flow of bad economic news.
    In Carlsbad, we heard any number of perspectives on just how long this crisis might last (another ten years is well within the range of possibilities) or how bad things might get (Doug-Casey bad).
    Read More @ CaseyResearch.com



Jim Sinclair’s Commentary

Straight talk from John Williams, a man you should subscribe to. \

Fed Easing Aimed at Propping Banking System, Not Boosting Economy
 

- CPI and PPI Headline Inflation Highest Since June 2009
 

- Headline CPI Held at 0.6%, Instead of 1.0%, Due to Intervention Analysis?
 

- August Year-to-Year Inflation: 1.7% (CPI-U), 1.7% (CPI-W), 9.3% (SGS)
 

- Retail Sales Showing Consistent Pattern of Overstated Headline Activity Being Revised Lower in 
Following Month
 

- Monthly Production and Real Earnings Turn Down

www.ShadowStats.com




Jim Sinclair’s Commentary
The real reason is that Arab Spring was no spontaneous outbreak of democracy as MSM would have you believe.
It is total bull that the video did it. Now it is a video, yesterday it was a movie without a title.

Anti-American ProtestJus Flare Beyond the Mideast
clip_image001

More…




Jim Sinclair’s Commentary
These guys are working hard on becoming the resident credit research department of Flat, Alaska

US Credit Rating Cut by Egan-Jones … Again Published: Friday, 14 Sep 2012 | 3:43 PM ET
CNBC.com With Reuters

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.’s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
More…

 

Jim’s Mailbox


Jim,
The NY Times is going to cut pensions for current retirees. I suspect many other large companies will follow. This would be another blow to an economy already teetering on the brink. Millions of retirees may soon go into panic mode if this spreads.
CIGA George

Dear George,
Since I started this have I not said for ten years that the retiree is the most endangered species on the face of the planet?
Nothing has changed.
Jim

NYTimes offers lump-sum pay or lower annuity option to ex-staff Sept 14 | Fri Sep 14, 2012 9:07am EDT
(Reuters) – The New York Times Co said it informed some former employees that it will offer pensioners the option to receive a one-time lump sum payment or start a lower monthly annuity now, in a bid to reduce its pension liabilities.
The company, publisher of its namesake newspaper and the Boston Globe, said the voluntary offer will be made to about 5,200 people who represent roughly 15 percent of its pension plan liabilities, which was about $1.99 billion as of Dec 25, 2011.
The company said in a regulatory filing it expects to record a non-cash settlement charge in the fourth quarter of 2012.
"This offer is another step the company is taking to reduce the size of its pension obligations and the volatility in the company’s overall financial condition," it said.
More…




Jim,
Why did you say the credit evaluators that downgraded the US today would be put in charge of credit evaluation for Flat, Alaska?
CIGA Arlen

Dear Arlen,
Having visited Flat, Alaska during one of my midlife crisis, I met the then residents Bill and Mary. It seems appropriate to what will happen to you if suggested USA T bills and bonds are instruments of confiscation.
Jim

Flat, Alaska, last reported statistics
Population in July 2007: 3.

Males: 1 clip_image002 (50.0%)
Females: 2 clip_image004 (50.0%)


Median resident age: clip_image006 33.0 years
Alaska median age: clip_image008 32.4 years
Zip code: 99584
Estimated median household income in 2009: $0 (it was $0 in 2000)

Flat: $0
Alaska: $66,953
Estimated per capita income in 2009: $0
Read more: http://www.city-data.com/city/Flat-Alaska.html#ixzz26ZSxkDr5




Dear Jim,
I just read the question from a reader about the penalties for cashing out an IRA. With the knowledge you patiently imparted in me I did so at $700 gold. Paid the taxes and penalties and at the time I wondered if I was doing the right thing. That was when $1650 seemed far, far away.
Now when we passed $1400 I was back to even, but in a much superior position.
Physical gold in my possession. At $1769 I’m way ahead and the future looks so bright I have to wear sunglasses.
I have never forgotten when you told us, "become your own central bank." Most people don’t have a clue as to what you mean but I know and I am forever indebted to you.
CIGA Z



Hi Jim,
First of all I want to thank you for all the insights and great work through the years. I know that you are very busy person and you receive thousand of e-mails, calls etc.
I do have a question regarding your current postings and the treat of government invasion of retirement accounts. It is a very real and dangerous event that I have kept in mind for a long time now. It even happened recently in Hungary and Poland if I am not mistaken with government "guarantees" of course. They took over personal retirement accounts to fill the holes in the budgets.
I am almost 100% sure that this will happen again and it might blow people’s minds.
I do have an IRA myself which was opened a long time ago and I stopped funding it for the past 3 years, but tell me what to do with it. Cashing the thing will cost 40% + 10% penalty, because I am not over 59 (Roth IRA). You have advised us to pull securities from the street using DRS or certificates, but will this save them from government intervention or they will be at risk even then? Is a self directed retirement account safe from government authorities or not (self-directed accounts invested in gold/gold shares). Please advise what will be your best strategy for this type of funds having all that in mind.
CIGA Cris

Cris,
The government in the West will consider and probably save you from yourself by taking over your retirement account when and only when the US Treasury market breaks badly. It will be in every headline everywhere when the US Treasury market collapses unexpectedly, probably in 2015 to 2017. If you read a headline, "Unexpected the US treasury market has come under extreme selling pressure," close your retirement account immediately.
Jim




Jim,
U have to add some higher gold targets on your animation now ;)
Rob

Rob,
See the illustration below. That was done in 2009.
Regards,
Jim



clip_image002
Jim,
Thanks, as always, for your advice.  Concerning the above would you further recommend cashing these in or just not adding to them? I am sure that there are other CIGAs with the same question.
My wife and I are both in our 70′s and each have Roth IRAs with 250K+ invested in precious metal stocks. The primary purpose and intent was to leave them to our 2 children for a lifetime annuity, unless we need them for medical reasons.
Regards,
CIGA Phil

Phil,
Live your life to the fullest, and let your children create their own wealth. Whatever is left from your full and happy life is theirs.
For now do not contribute any more funds. If and when the bond market starts to fail under lows, dump those retirement accounts.
Jim



Jim
Would u please tell me how the government could take over my 401k plan and make me invest in what they want, like government bonds? I believe this is what you were indicating in your latest blog that I just read.
Thank you,
CIGA Herb

Dear Herb,
By presidential edict like the almost 1000 edict (Presidential orders) that have skirted the legislative process in the past 4 years. It will be MOPEd as saving you.
Jim

 

Must Read...

A Note From Monty Guild


Dear CIGAs,

To all the readers of JSMineset and Tanzanian Royalty Exploration websites:
I am writing to give thanks to the most brilliant, seasoned and clear mind in international economics and finance, Jim Sinclair.
Events of the past weeks in Europe, the US, and many other parts of the world have conclusively brought to fruition the predictions of Jim Sinclair in an unmistakably clear manner for the entire investing universe to see.
Jim’s repeated, steadfast and consistent statements that QE to infinity would be the result of government behaviors have been clearly verified and demonstrated by the action of the US Federal Reserve yesterday.
Taken alone, the $40 billion per month QE is stunning. We remember this is being done while maintaining all previous programs, operation twist and etc. When taken with consideration of the context provided by the recent actions in Europe, China, Japan, UK and many other countries to do types of QE, it provides an irrefutable example of how QE to infinity is playing out.
For all of your readers may I gratefully say many thanks for your wisdom and guidance, Jim.
Monty Guild


Retirement Accounts: Problems Above And Beyond Sentinel Ruling and Custodian Integrity


My Dear Extended Family,
There is one more serious problem with all retirement accounts above and beyond the Sentinel Ruling and the integrity of the custodian.
If a systemic failure and lower dollar causes an unwanted increase in interest rates in light of the Fed as the major consumer of treasury paper in the last 18 months, how would the US government fund itself? You can be certain that China and the Middle East are not coming to the rescue.
One way would be to liquidate retirement accounts ($2 trillion USD) and put treasury paper into them to save the poor worker and coming retirees from loss as MSM and MOPE would say.
Look around the world at governments either eyeing retirement programs or invading them. You will find it is already happening.
Please, at a minimum, stop creating and funding them.
Regards,
Jim

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