We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Pimco’s El-Erian: Ireland Risks Major Run on Banks
Ireland risks a “major bank run” unless European officials act quickly to calm the financial turmoil in the nation, Pacific Investment Management Co. Co-Chief Investment Officer Mohamed A. El-Erian said.

Jim Sinclair’s Commentary

This is a total Western world currency problem whose basis is still not fully discussed. The essence of the problem is as much overspending and debt, but media forgets, facilitated by the national OTC derivative camouflage.
QE will go to infinity and the race to the bottom is going to get UGLY. Although Nigel Farage is correct, he has no concept of what doing the right thing will result in immediately.
There is no practical way out of this. I have told you that for 8 years and nothing has changed.
Gold is the only currency that is going to survive this, defined as the preserving of buying power, as it always did throughout monetary history.

Jim Sinclair’s Commentary

Step back a few months. Does this remind you of a period called the Greek Crisis? It is so similar that the articles might even be the same words with only the names changed.
Would it not be fair to say US Banks are ""Nearly Bust" If the US dollar Collapses, Yahooti Says."
How about Yahooti says the FASB’s selling out of their auditing souls covers up a bankrupt financial industry?

European Banks ‘Nearly Bust’ If Euro Collapses, Evolution Says By Charles Penty – Nov 25, 2010 3:31 AM MT
The European banking system would be “nearly bust” if the euro were to be abandoned which means the 16-member currency “cannot and should not go,” Evolution Securities Ltd. said.
“If the euro is abandoned, and we go back to the peseta, lira, escudo, drachma etc., devaluations would follow immediately,” said Arturo de Frias, head of bank research at Evolution in a note to investors today, adding the industry is a “great buying opportunity.” Devaluations mean write-offs “of a size that would render the whole European banking system completely insolvent.”
Contagion from Europe’s sovereign debt crisis is spreading to Spain, sparking concern that the European rescue fund set up in May isn’t large enough. French, German and U.K. banks could lose 360 billion euros ($479 billion) if the euro collapsed, assuming a 30 percent devaluation in the wake of the restoration of national currencies, said de Frias.
The damage caused by the abandonment of the euro would be such that such an outcome is impossible and the “only way forward” for Europe is fiscal union, he said.
“It is simply too late,” he wrote. “There are too many cross-border investments in Europe to go back to national currencies.”
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Jim Sinclair’s Commentary

This should be very disturbing in light of the public musing about retirement tax accounts.

Hungary Follows Argentina in `Nightmare’ Pension-Fund Ultimatum By Zoltan Simon – Nov 25, 2010 4:37 AM MT
Hungary is giving its citizens an ultimatum: move your private-pension fund assets to the state or lose your state pension.
Economy Minister Gyorgy Matolcsy announced the policy yesterday, escalating a government drive to bring 3 trillion forint ($14.6 billion) of privately managed pension assets under state control to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim.
“This is effectively a nationalization of private pension funds,” David Nemeth, an economist at ING Groep NV in Budapest, said in a phone interview. “It’s the nightmare scenario.”
Hungary is rolling back pension changes implemented more than a decade ago as countries from Poland to Lithuania find themselves squeezed by policies designed to limit long-term liabilities by shifting workers into private funds. Now the cost is swelling debt and deficit levels at a time when the European Union is demanding greater fiscal discipline.
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Jim Sinclair’s Commentary

Add this to the Russian and Chinese announcement yesterday of abandonment of the dollar that will be replaced by using each other’s currency in trade settlement.
No amount of media flag waving is making this trend go away.

Russia buys Canadian dollars, may add Australian dollar
Moscow expands its foreign-exchange holdings Nov. 25, 2010, 1:45 a.m. EST
HONG KONG (MarketWatch) — Russia has reportedly added the Canadian dollar to the basket of currencies that comprise its international foreign-exchange reserves and indicated the Australian dollar will likely be the next addition.
A “small” amount of Canadian dollars has been purchased by Russia’s central bank, according to a Bloomberg News report citing comments Wednesday by Alexei Ulyukayev, the central bank’s first deputy chairman.
Ulyukayev reportedly said Russia plans to increase the size of its Canadian dollar holdings in coming months as part of changes to its reserve holdings, also made up of the U.S. dollars, euros, British pounds, and Japanese yen.
Ulyukayev also said the Russia central bank is still considering whether it should add the Australia dollar to its reserves’ holding, reaffirming statements earlier this year that it may add the commodity-backed currency as it diversifies away from the U.S. dollar.
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Jim Sinclair’s Commentary

Is there anyone still doubting Monty or me concerning QE to infinity in the entire Western World?

Weber Says EU Rescue Fund Can Be Increased If Needed By Christian Vits and Mark Deen – Nov 25, 2010 9:06 AM PT
Nov. 25 (Bloomberg) — European Central Bank council member Axel Weber said governments can increase the size of the European Union-led bailout fund if necessary to restore confidence in the euro.
“Seven hundred and fifty billion should be enough to assure the markets,” Weber said at the German embassy in Paris late yesterday. “If not, it will have to be increased.”
Contagion from Europe’s sovereign debt crisis is spreading to Spain, sparking concern that the bailout fund set up in May isn’t large enough to rescue the euro region’s fourth-largest economy. The premium on Spanish debt over German bunds rose to a euro-era record yesterday and Portugal’s bonds fell on concern they will follow Ireland and Greece in asking for external aid.
“It is far from certain whether the fund can be increased as easily as that,” given governments may face domestic resistance to a top up request, Commerzbank AG analysts wrote in a research note today. “So there is a danger that markets are going to consider this statement to be premature, thus increasing market skepticism regarding the ability to act among those responsible.”
Spain’s economy is almost twice the size of Portugal, Greece and Ireland combined. Deputy Finance Minister Jose Manuel Campa said in an interview yesterday the country’s funding position for the rest of the year is “comfortable.”
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NY Times' Floyd Norris: Pondering the causes of gold fever

Buy Gold: It’s the Only Way to Combat Government Spending
By: Richard Daughty, The Mogambo Guru

Totally Standard Hyper-Inflation
By: Adrian Ash, BullionVault

Gold – "Buy on Dips" Advised as Irish Crisis Tips "Ugly Contest" from Dollar to Euro
By: Adrian Ash, BullionVault

Preparing for The Big One, Coming Soon

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