from Silver Doctors:
The man who predicted gold would reach $1600 while it was trading below $300 and was ridiculed by nearly everyone, has placed his 34-acre Connecticut farm/ estate up for auction and plans to flee from the growing fascism in the US. Sinclair states on JSMineset that those who decide to stay will look back and recall his advice to leave the US come 2015-2017.
Like many, Sinclair can see the writing on the wall for the end of prosperity and freedom in America.
Clearly, putting one’s 34-acre estate up for auction with plans of becoming an expatriate is not a small nor an easy decision. Full details of the Sinclair Farm/Estate Auction can be found below.
Click here for a PDF version
Read More @ SilverDoctors.com
Europe Leaks It Will Fix Crushing Debt Problem With €940 Billion Of More EFSFESM Debt
We were delighted to see that the old headline scanning algos are
still in charge of the FX market following "news", which were not even
news, having been expected by absolutely everyone, that the EU is about
to propose an expansion of Europe's bailout fund to a total of €940
billion for one year, by merging the €440 billion EFSF and €500 billion
ESM - leading to a very transitory spike in the EURUSD. From
Bloomberg: "European governments are preparing for a one-year increase
in the ceiling on rescue aid to 940 billion euros ($1.3 trillion) to
keep the debt crisis at bay, according to a draft statement written for
finance ministers. The euro-area finance chiefs will probably decide
at a meeting in Copenhagen March 30 to run the 500 billion-euro
permanent European Stability Mechanism alongside the 200 billion euros
committed by the temporary fund, a European official told reporters
earlier today in Brussels. Beyond that, they are also set to allow the
temporary fund’s unused 240 billion euros to be tapped until mid-2013
“in exceptional circumstances following a unanimous decision of
euro-area heads of state or government notably in case the ESM capacity
would prove insufficient,” according to the draft dated March 23 and
obtained by Bloomberg News." Three things here: 1) Of the bombastic
€940 billion in headline bailout money, only €300 billion or so will
actually be available (sorry PIIGS - you can't bail out the PIIGS, also
a third of the EFSF money is already tied up); 2) Europe is already
preparing for the fade of the impact of the LTRO, which as pointed out
earlier, has not only peaked, but courtesy of the LTRO stigma, which we
suggested months ago to
trade by going long non-LTRO banks and shorting-LTRO recipients, is
starting to hurt all those firms who thought, foolishly, that the market
would not go after them. They were wrong. And now Draghi is also boxed
in an runaway inflation corner. And 3) Europe is back to the old mode
of thinking that more debt will fix debt, even as the banking sector is
forced to delever ahead of Basel III and due to shareholder
requirements. This simply means that the eye of the hurricane over
Europe's sovereign debt is about to pass. Those who miss 7% yields on
BTPs won't have long to wait. Reality is once again starting to reassert
itself.
Now even goldman sucks is finally telling you to BTFD...
Goldman Sachs issues "Buy" on Gold; Gold drops lower
Trader Dan at Trader Dan's Market Views - 1 hour ago
Interesting recommendation by Goldman and even more interesting to see the
market reaction in gold today. Can you say that someone is particularly
overjoyed by the opportunity to take that recommendation?
By the way, Goldman is echoing the remarks from Chairman Bernanke the other
day and repeating what my interpretation of those remarks were in this
week's comments entitled, "Pass the Juice Please".
Goldman's views in summary can be translated as follows: Gold market
weakness has been tied to the fact that the markets were expecting "REAL
INTEREST RATES" to rise in light of the rece... more »
Bianco & Biderman On Bonds And deBasement
James Bianco plays straight-man to Charles Biderman in this extended (and admittedly audio-challenged) discussion of the reality behind money printing, inflation, and the US Treasury market. Following our discussion of the deficit earlier,
it seemed appropriate to listen to this back-and-forth as Bianco
addresses who is really buying US Treasuries, how 'money' is created by
the Fed for the banks, and where inflation is leaking into the system. "The day the Fed admits there is an inflation problem is the day they are too late"
is how they summarize the temporary/transitory verbiage that the Fed
needs to keep using to placate the masses. Gold (and TIPS) remain their
preferred strategy as Bianco argues that putting the 'inflation' threat in context
is critical - this is not about 14/15% comparisons, this is about
investor expectation that we get 3% inflation with the Fed at ZIRP and
intending to keep printing money - which is just as toxic. The two end with an interesting conversation on the simultaneous debt deflation and price inflation and the importance of not comparing either to their extremes by way of shrugging off concerns.Arguments On Obamacare Conclude, SCOTUS Decision Due By Late June
The deliberations on Obamacare have ended. The next catalyst will be late June, when the Supreme Court is expected to rule on whether Obamacare is constitutional or not. If overturned, expect lots of fingerpointing, and even more allegations that it is all Bush's fault, especially if the vote goes down according to party lines.Guest Post: Are There Any Currencies Backed By Gold?
Dumbfounded. That’s the only way to describe the reaction that future historians will have when they look back and study the utter perversion that is our global financial system. We live in a time when a tiny handful of people have their fingers on a button that can conjure trillions of dollars, euro, yen, and renminbi out of thin air. In the United States, it comes down to one man. Just one. With a single decision, he controls the lever that dominates the entire economy. When you control the money, you control everything– financial markets, consumer prices, risk perceptions, investment habits, savings rates, hiring decisions, pay raises, sovereign debt, housing starts, etc. One man.EU - EFSF & ESM - A Whole Lot Of Nothing
Nothing has changed. You are counting the commitments of people who need the money. It is like getting a loan from the bank and trying to make them more comfortable by telling them, not only will we co-sign our own loan, but we will give them a guarantee that we will pay it back. These are the same people who constantly try to overwhelm current problems with huge headlines and promises of a better future. They don’t have the money, and never will. They also promised speculators in Greece would lose their shirts. We need to see the details, but be prepared to be underwhelmed.Dan Loeb Goes Back To His Roots, Says Yahoo Lives In An "Illogical Alice-in-Wonderland World"
There was a time when Mr. Pink would send out witty activist letters full of zing and sarcasm, which would brighten many a trader's day. Then Mr. Pink started running a multi-billion fund and Mr. Pink matured into Dan Loeb. Today, Loeb returns with a vengeance having submitted a zinger letter to YHOO CEO Scott Thompson, in his capacity as a 5.8% shareholder of YHOO stock. Needless to say, Loeb is less than pleased with Yahoo's recent snub of his board of director candidates. The result are sentences such as the following: "Only in an illogical Alice-in-Wonderland world would a shareholder be deemed to be conflicted from representing the interests of other shareholders because he is, well, a shareholder too."..."this “long-term vs. short-term” excuse is a canard and particularly inapt in the case of Yahoo!. If there ever was a company in need of a sense of urgency, it is this one."..." Was it “short-term” thinking that led Third Point to push for the resignations of Jerry Yang, Roy Bostock, Arthur Kern and Vyomesh Joshi? If so, is there a Yahoo! shareholder on the planet who thinks this “short-term” thinking was bad for the Company? Was it “short-term” thinking that led Third Point to speak up for shareholders by questioning the fairness of the attempt by the Company to give away control to private equity funds – without receiving a premium – to entrench Roy Bostock and Jerry Yang? Or to suggest, as Third Point has, that the Company’s stake in Alibaba is more valuable than generally understood, and that the Company should hold on to it unless it can get fair value? Was it “short-term” thinking to point out the lack of media and advertising expertise on the Board and nominate extraordinarily qualified nominees to fill that gaping hole?" And so on. Loeb concludes amicably: "We remain willing to engage further with you but will not deviate from our demand for badly-needed shareholder representation." We are confident his next letter, which will be released in 1-2 months, will hardly be so pleasant.WTF Bloomberg Chart Of The Day
That idiocy is job requirement for the bulk of sell-side "bankers" has long been known. That Bloomberg wishes to glorify it by making Wells Fargo's prediction of S&P 3700 by 2022 its "chart of the day", however, is absolutely ridiculous, and certainly qualifies for the WTF moment of the day.US Issues New 5 Year Bonds At Lowest Bid To Cover Since August, Sends Total US Debt Over $15.6 trillion
Today's $35 billion 5 Year auction was
not very pretty: coming at a high yield of 1.04%, it was a tail to the
When Issued trading 1.03% at 1pm, and the highest rate since October's
1.055%, and the first 1%+ print in 2012. Also notable was the drop in
the Bid To Cover to 2.85, which in turn was the lowest since the 2.71
in August of last year. Aside from that the internals were in line:
Directs took down 11.3%, in line with the 11.4% average, Indiricts
41.9%, just below the 42.8% TTM average, and the remainder was Dealers,
whose 46.8% allocation was just slightly lower than the 45.8% they have
taken down previously. All in all another auction that squeezed by
courtesy of the PD syndicate, which as has been noted before, is already
loaded to the gills with the short-term bonds that Uncle Ben is
selling. More importantly, this is the auction that in conjunction with tomorrow's last of three,
will send total US debt higher by another $39 billion and brings it to
a fresh record high $15.6 trillion. There is now about $700 billion in
debt issuance capacity before the debt ceiling is breached again. At
this run rate, this is just under 6 months before the
debt ceiling scandal ramp up again, or just in time to be used by the
GOP as the biggest trump card in the Obama reelection debates, just as
we suggested here first back in February.How To Fund The Government This Year
Submitted by Tyler Durden on 03/28/2012 - 12:44
In
a wonderfully straightforward explanation of just what needs to be cut
to fund the government from its current D-Day (July 31st) to the end
of the year, Professor Antony Davies explains the shocking truth that
is our total and utter inability to cut spending in any meaningful way.
This comment sums it up perfectly: "We can reduce the federal government to a glorified assisted living facility and we still wouldn't be able to balance the budget."
from Kerry Lutz.com:
Max Yemets was just a child when hyper-inflation came to the Ukraine, but he has many memories of that time. Max remembers people living on fixed incomes and having their entire worth wiped out. 10,000% inflation has a way of making people question their government. While they were extremely hard times, that seemingly happened overnight, people banded together and got through it with remarkable grace.
Naturally, there was civil unrest as well as a major increase in crime. People in the former Soviet Union didn’t have a right to bear arms, and the State liked it that way. But most people in the Ukraine knew how to live off the land, and for 3-4 years that’s exactly what they did. Finally, the currency was pegged to the US Dollar, and the cycle ended once and for all. Unfortunately, we don’t have another currency to substitute for our dollar. So if the currency follows the normal lifecycle of all fiat currencies, we will have to pin our hopes on gold and silver.
Click Here to Listen to the Audio
Read More @ KerryLutz.com
Max Yemets was just a child when hyper-inflation came to the Ukraine, but he has many memories of that time. Max remembers people living on fixed incomes and having their entire worth wiped out. 10,000% inflation has a way of making people question their government. While they were extremely hard times, that seemingly happened overnight, people banded together and got through it with remarkable grace.
Naturally, there was civil unrest as well as a major increase in crime. People in the former Soviet Union didn’t have a right to bear arms, and the State liked it that way. But most people in the Ukraine knew how to live off the land, and for 3-4 years that’s exactly what they did. Finally, the currency was pegged to the US Dollar, and the cycle ended once and for all. Unfortunately, we don’t have another currency to substitute for our dollar. So if the currency follows the normal lifecycle of all fiat currencies, we will have to pin our hopes on gold and silver.
Click Here to Listen to the Audio
Read More @ KerryLutz.com
from Gains Pains Capital:
Europe continues to take a page out of Hank Paulson’s “Crisis Combat” booklet, by unveiling one monetary “bazooka” after another. Obviously, EU leaders didn’t notice that Paulson’s “bazooka” completely failed to stop the 2008 Crash.
Even more strangely, they keep pulling out bazooka after bazooka, first unveiling the EFSF which was supposed to raise €1 trillion but failed to raise even €10 billion without having to intervene in its own bond auctions.
Then came the ESM, which was supposed to be another mega-bailout fund, which as before, is having trouble raising funds. After all, if one bailout fund is a dud, why would launching another fix anything?
Oh, and I forgot to mention that both bailout funds will be leveraged… which Europe obviously doesn’t have enough of already (the EU banking system as a whole is leveraged at 26 to 1. Lehman Brothers was at 30-to-1 when it imploded).
Read More @ Gainspainscapital
Europe continues to take a page out of Hank Paulson’s “Crisis Combat” booklet, by unveiling one monetary “bazooka” after another. Obviously, EU leaders didn’t notice that Paulson’s “bazooka” completely failed to stop the 2008 Crash.
Even more strangely, they keep pulling out bazooka after bazooka, first unveiling the EFSF which was supposed to raise €1 trillion but failed to raise even €10 billion without having to intervene in its own bond auctions.
Then came the ESM, which was supposed to be another mega-bailout fund, which as before, is having trouble raising funds. After all, if one bailout fund is a dud, why would launching another fix anything?
Oh, and I forgot to mention that both bailout funds will be leveraged… which Europe obviously doesn’t have enough of already (the EU banking system as a whole is leveraged at 26 to 1. Lehman Brothers was at 30-to-1 when it imploded).
Read More @ Gainspainscapital
Still Think Your Vote Counts?...
from The Daily Bell:
Washington GOP on hidden camera excluding Ron Paul
Delegates … Election fraud has occurred in every state in the union,
but what may be the worst case yet happened on Saturday in Washington
State as GOP party ‘officials’ openly attempted to exclude Ron Paul
delegates from participating in the 2nd District’s Convention. With
hidden camera in hand, a Washington State resident secretly recorded
Alex Hayes, Director of “Mainstream Republicans of Washington State”
trying to exclude Ron Paul Delegates from participating in the election
by showing a “slate” of delegates to choose from that only included
supporters of the other three candidates. Acting on advice he told the
crowd that was specifically handed down from those three campaigns
themselves, in his own words he told the crowd of awaiting voters that
the “Romney, Santorum and Gingrich campaigns” all decided Paul wasn’t
going to be able to participate in the Convention. – Jeffrey Phelps /
Denver Conspiracy Examiner
Dominant Social Theme: This Ron Paul is just too extreme.
Free-Market Analysis: We’ve watched as the GOP top honchos have tried to make sure that libertarian Congressman Ron Paul is not the Republican candidate for US president, and that his clout is mitigated as much as possible.
We can see from the article excerpt above that there is plenty of evidence of obvious manipulation and even cheating to try to deprive Ron Paul of GOP delegates for the national convention – where the GOP candidate will be elected.
Read More @ TheDailyBell.com
Washington GOP on hidden camera excluding Ron Paul
Delegates … Election fraud has occurred in every state in the union,
but what may be the worst case yet happened on Saturday in Washington
State as GOP party ‘officials’ openly attempted to exclude Ron Paul
delegates from participating in the 2nd District’s Convention. With
hidden camera in hand, a Washington State resident secretly recorded
Alex Hayes, Director of “Mainstream Republicans of Washington State”
trying to exclude Ron Paul Delegates from participating in the election
by showing a “slate” of delegates to choose from that only included
supporters of the other three candidates. Acting on advice he told the
crowd that was specifically handed down from those three campaigns
themselves, in his own words he told the crowd of awaiting voters that
the “Romney, Santorum and Gingrich campaigns” all decided Paul wasn’t
going to be able to participate in the Convention. – Jeffrey Phelps /
Denver Conspiracy ExaminerDominant Social Theme: This Ron Paul is just too extreme.
Free-Market Analysis: We’ve watched as the GOP top honchos have tried to make sure that libertarian Congressman Ron Paul is not the Republican candidate for US president, and that his clout is mitigated as much as possible.
We can see from the article excerpt above that there is plenty of evidence of obvious manipulation and even cheating to try to deprive Ron Paul of GOP delegates for the national convention – where the GOP candidate will be elected.
Read More @ TheDailyBell.com
By Greg Hunter’s USAWatchdog.com
Dear CIGAs,
Watching the financial channels yesterday, I could not tell you how many times the word “recovery” was used. Sure, the stock market is up, but that is compliments of the Federal Reserve. Since the 2008 financial meltdown, we’ve had a money printing extravaganza. There was QE1, QE2, Operation Twist, dollar swaps with Europe and 0% interest rates (on a key rate) through 2014. Of course the stock market is up, it loves free money. Wall Street may have recovered, but Main Street is still in the dumper. (Actually, Wall Street has just broken even since the 57% plunge it took up to March of 2009.) Professional commodities trader Dan Norcini said, this week, on his blog, “. . . the FED IS TERRIFIED OF RISING INTEREST RATES.” Norcini explains, “. . . the US federal debt is at banana republic levels and any, I repeat, any rise in interest rates, will suck more of the incoming federal revenue into servicing the cost of this debt (paying the interest on it), leaving less for the spendthrift class to buy votes with. Bernanke and company cannot afford to have a stock market that stops moving higher because if and when it did, the entire facade of an economy on the mend would come crashing down with it.” (Click here to read the complete Trader Dan post.)
The Fed may have juiced the stock market with cheap money and ultra-low interest rates, but the housing market is dead. According to the latest Case-Shiller Home Index, prices are down—again. The latest data, released yesterday, reveals prices in 17 of 20 cities surveyed were down. Atlanta home prices plunged by a whopping 14.8% year-over-year. The best year-over-year increase was turned in by Detroit, with a paltry 1.7% increase. According to the Case-Shiller report, “As of January 2012, average home prices across the United States are back to the levels where they were nearly a decade ago – in early 2003. Measured from their June/July 2006 peaks through January 2012, the peak-to-current decline for both the 10-City Composite and 20-City Composite is 34.4%. January’s levels are new lows for both Composites in the current housing cycle.” (Click here for the complete Case-Shiller press release.)
I see no recovery for people on Main Street as far as housing is concerned, and neither does economist John Williams of Shadowstats.com. His latest report, last week, focused solely on housing and construction. The first line in his report says it all, “The construction industry remains distressed in the extreme, clobbered by collapsing broad economic activity from 2006 into 2009 and by three subsequent years (and counting) of no recovery—just economic stagnation.” (Click here to go to the shadowstats.com home page.) You want to see what construction spending on payrolls looks like on a chart? Here’s the ugly picture, compliments of Shadowstats.com.
More…
Dear CIGAs,
Watching the financial channels yesterday, I could not tell you how many times the word “recovery” was used. Sure, the stock market is up, but that is compliments of the Federal Reserve. Since the 2008 financial meltdown, we’ve had a money printing extravaganza. There was QE1, QE2, Operation Twist, dollar swaps with Europe and 0% interest rates (on a key rate) through 2014. Of course the stock market is up, it loves free money. Wall Street may have recovered, but Main Street is still in the dumper. (Actually, Wall Street has just broken even since the 57% plunge it took up to March of 2009.) Professional commodities trader Dan Norcini said, this week, on his blog, “. . . the FED IS TERRIFIED OF RISING INTEREST RATES.” Norcini explains, “. . . the US federal debt is at banana republic levels and any, I repeat, any rise in interest rates, will suck more of the incoming federal revenue into servicing the cost of this debt (paying the interest on it), leaving less for the spendthrift class to buy votes with. Bernanke and company cannot afford to have a stock market that stops moving higher because if and when it did, the entire facade of an economy on the mend would come crashing down with it.” (Click here to read the complete Trader Dan post.)
The Fed may have juiced the stock market with cheap money and ultra-low interest rates, but the housing market is dead. According to the latest Case-Shiller Home Index, prices are down—again. The latest data, released yesterday, reveals prices in 17 of 20 cities surveyed were down. Atlanta home prices plunged by a whopping 14.8% year-over-year. The best year-over-year increase was turned in by Detroit, with a paltry 1.7% increase. According to the Case-Shiller report, “As of January 2012, average home prices across the United States are back to the levels where they were nearly a decade ago – in early 2003. Measured from their June/July 2006 peaks through January 2012, the peak-to-current decline for both the 10-City Composite and 20-City Composite is 34.4%. January’s levels are new lows for both Composites in the current housing cycle.” (Click here for the complete Case-Shiller press release.)
I see no recovery for people on Main Street as far as housing is concerned, and neither does economist John Williams of Shadowstats.com. His latest report, last week, focused solely on housing and construction. The first line in his report says it all, “The construction industry remains distressed in the extreme, clobbered by collapsing broad economic activity from 2006 into 2009 and by three subsequent years (and counting) of no recovery—just economic stagnation.” (Click here to go to the shadowstats.com home page.) You want to see what construction spending on payrolls looks like on a chart? Here’s the ugly picture, compliments of Shadowstats.com.
More…
Jim Sinclair’s Commentary
I thought you might be interested in the mention of myself in this Forbes article.
The Payments Network As Economic Weapon 3/27/2012 @ 9:30AM
“Extraordinary and unprecedented” is how SWIFT chief executive, Lázaro Campos, describes the March 17th move by Belgium-based SWIFT to discontinue service to 30 Iranian banks. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is a worldwide financial messaging network to facilitate the interbank transfer of funds. Now, it has become an economic weapon as well.
SWIFT Headquarters in La Hulpe, Belgium
Campos emphasized the monetary blockade is “a direct result of international and multilateral action to intensify financial sanctions against Iran” and that SWIFT was forced by recent European Union sanctions designed to isolate Iran financially for its failure to demonstrate to Western nations that it is not developing nuclear weapons.
SWIFT has never expelled an institution in its 39-year history and in 2010 it processed 2 million messages for 19 Iranian member banks and 25 financial institutions. This is a vastly significant change in tactics and the repercussions are still unknown. Governments have long used the financial system as a method of tracking and blocking payment flow for targeted individuals and companies, but now it has been escalated to the nation-state level via the modern telecommunications network.
Mark Dubowitz is a sanctions specialist in Washington D.C. who advised U.S. lawmakers on the recent SWIFT legislation. He said the decision could limit the ability of Iran’s banks “to move billions of dollars in financial transactions and put immense pressure on Iran’s leaders to reconsider their policies” and that it underscores “the growing political isolation of Iran as it becomes the first country to be expelled from what is the financial equivalent of the United Nations.”
Highlighting and exposing the structural importance of centralized financial institutions that sit at the very top of the payments pyramid will hasten the trend to more decentralized and regional payment structures. Moreover, a single worldwide financial structure with near-absolute authority will begin to be seen as a vulnerability to many nations because they cannot always be expected to comply with U.S. and European Union directives. Now that the precedent has been set for evicting a country’s financial institutions from the prevailing global payments network, all nations will be rightly suspicious of that powerful weapon.
Trader and gold advocate Jim Sinclair explains to King World News how the U.S. government uses the international payments system as a weapon of war:
“We go to war, challenging the other side to do the same because whatever you use as a weapon, the other side is going to tend to use as a weapon. The weapon that’s being used is the interbank transfer system, the way money is sent from bank to bank. We’ve already seen that Iran has been basically shut out of the SWIFT system and the SWIFT system is what this is all about. The SWIFT system doesn’t take any money for the money that goes through it. The SWIFT system is like the old telephone company. What it does is charge for the use of its communication.
Believe me the SWIFT system works for the West. It’s located in Belgium and you would think the US had no power on it. It’s never discussed as being a US arm, but it is a US weapon. You’ve got to see now you’ve got this visual in front of you of a battlefield. You’ve got Wall Street firing by lighting off something that looks like a cruise missile, but it’s got SWIFT written on the side.”
India is now told to cooperate or suffer the consequences implying tacitly that payment network sanctions are a real possibility. In a March 26th, 2012 audio interview, Sinclair goes on to forecast how the BRIC economies and other emerging trade areas around the world may soon look to establish their own SWIFT-type transfer systems so as not to get locked out of the international monetary system in the future. The backlash from this action will lead to the remonetization of gold around the world as barter and currency substitutes to the U.S. dollar gain in importance.
More…
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