US Debt Ceiling D-Day: September 14, 2012

Earlier today, outgoing Treasury Secretary and tax challenged part-time pathological liar (see here) Tim Geithner said that any worries of the US debt ceiling are misplaced, and that at best such an event would occur "late in the year" (and to think the August 2011 extended $16.394 trillion debt ceiling was supposed to last well into 2013). Naturally, coming from Geithner, it meant this statement was a flat out lief the second it left his mouth, which is why we decided to do our own analysis of just when the latest and greatest debt ceiling would be breached. The answer is that at the current rate of debt issuance, which incidentally is going to accelerate sharply due to the recent extension of the payroll tax cuts which will require an incremental $100-150 billion total debt to be funded, and extrapolating future issuance solely on historical patterns, the US debt ceiling D-Day will be September 14, 2012. This means that there will be just over 6 weeks for the GOP to hijack each and every presidential debate before the November election with just this topic. Because there will hardly be anything more humiliating for Obama than to have to defend his platform even as the country is once again past the verge of insolvency, and forced to "commingle" retirement funds to keep Treasury operations running. Which incidentally is just as we predicted would happen when we explained why the GOP fast shelved the payroll tax debate so rapidly. It was nothing but a prelude to precisely this. Because once it is raised, and it will be raised of course, next up will be yet another ratings downgrade by S&P and this time, Moody's as well. All of which will most likely happen before November.

 

“Please Watch – This is important to me”

from Bobbertsandy:

An introduction for family and friends. Please take the 8 minutes to watch this video, it says a lot about what concerns me.

Ron Paul Stolen Democracy

VIDEO PROOF THAT ELECTIONS ARE AND CAN BE RIGGED WITHOUT DETECTION…

 

Why Does The Department Of Homeland Security Need 450 MILLION Hollow Point Bullets?

from The American Dream:
Somebody out there has decided that the Department of Homeland Security needs a whole lot of ammunition. Recently it was announced that ATK was awarded a contract to provide up to 450 MILLION hollow point bullets to the Department of Homeland Security over the next five years. Is it just me, or does that sound incredibly excessive? What in the world is the DHS going to do with 450 million rounds? What possible event would ever require that much ammunition? If the United States was ever invaded, it would be the job of the U.S. military to defend the country, so that can’t be it. So what are all of those bullets for? Who does the Department of Homeland Security plan to be shooting at? According to the U.S. Census, there are only about 311 million people living in the entire country. So why does the Department of Homeland Security need 450 million rounds of ammunition? Either this is an incredible waste or there is something that the Department of Homeland Security is not telling us.
I could understand if the U.S. military was ordering ammunition in this quantity. When you fight wars you can go through ammunition very rapidly. But the Department of Homeland Security is only supposed to be shooting at people very rarely.
Read More @ EndOfTheAmericanDream.com

Bank Closings Signal Coming Collapse

by Paul Drockton, Money Teachers:
Here are the March, 2012 Bank Closings and their cost to the Federal Deposit Insurance Fund:

Premier Bank, Wilmette, Illinois:   $64.1 million.

Covenant Bank & Trust, Rock Spring, Georgia:  $31.5 million

New City Bank, Chicago, Illinois:  $17.4 million

Metro City Bank, Doraville, Georgia:  $17.9 million

Total Cost to FDIC: $131 million

How Much Money Is in The Fund?

“The unaudited DIF balance — the net worth of the fund — rose to $9.2 billion at December 31 from $7.8 billion at September 30… The contingent loss reserve, which covers the costs of expected failures, fell from $7.2 billion to $6.5 billion during the quarter. Estimated insured deposits grew 3.1 percent in the fourth quarter.” (Source)

Banks pay into the fund based on assets. American taxpayers will cover the rest. The above list of banks are small players, yet, 12 months of similar failures would cost 1.5 billion dollars. This is why the FDIC contingent loss reserve fell from 7.2 billion to 6.5 billion in the last quarter of 2011 alone. They spent over a billion in January 2012.

Read More @ MoneyTeachers.org

This Is Where The Developed World's Households Have Invested Their Money

Yesterday we presented what the balance sheet of the developed, or better known as insolvent, world- recall there was over $21 trillion in excess debt as of 3 years ago, looks like, and the curious to some observation that trillions in liabilities also double up as assets, in what is easily the world's most confounding (to central bankers at least) global circle jerk. After all, one can not inflate liabilities, without also destroying the assets these double count as  at the same time. Yet while informative, that chart did not tell us anything we did not already know. However, the next chart we will present today will show a different aspect of the developed world, namely by indicating how the households of the three "richest" economies - Japan, the US and the Euro Area, have invested their money in various financial assets. And while this is merely the asset side of the ledger it shows how distinctly different the approach to capital allocation has been for countries in different stages of growth or ungrowth. What is most notable is the distinct distribution of capital in shares and equities within the three regions: it also shows why a sustained downtick in the US stock market is the deathknell of the modern economic experiment. What is also curious is that the investment of Japanese households into Insurance and Pension reserves, which in turn are then funneled into JGBs, is no larger than the US or European equivalent: it means that the true funding cost of the welfare state is roughly a third of all modern financial assets.

Is A Bad NFP Print Days Away - Goldman Says Warm Weather Added 70,000-100,000 Jobs; Now It's Payback Time

Three months ago, this site was the first to discuss the impact of abnormally high temperatures on "better than expected" economic data, which the mainstream media in its perpetual permabullish bias attributed to economic "growth", and not even to $1.3 trillion in ECB liquidity, which today even the ECB's Constancio admitted was nothing but QE: "The purpose of the European Central Bank's two three-year longer-term refinancing operations was to address banks' short-term funding issues and "nothing else." "The sole aim of the LTRO was to cater to the funding stress of euro area banks in general," Constancio said at a colloquium on macro-prudential regulation here. "It never crossed our minds that we were solving the sovereign debt crisis" with these measures. Hence QE, albeit masked by worthless collateral exchange to make the naive Germans believe the ECB was not outright printing money. It was. Now that the 'economy', and by that we mean the stock market of course, is finally turning over, the topic of the weather will start being far more prominently featured, as there will have to be a validation to unleash QE at either the April or the June FOMC meeting (something which the Chairman hinted at on Monday, and which Bill Gross has been saying for months). Why blame it on the weather of course. It is in this context that we show the latest Goldman Sachs economic outlook piece from Zach Pandl who now states that "unseasonably warm temperatures have lifted the level of nonfarm payrolls by 70,000-100,000 as of February." Call it erroneous seasonal adjustments (as we have for the past two months), call it a trigger happy BLS, or just call it people leaving their home more than if there was 6 feet of snow outside, the point is that now up to 100,000 jobs will have to be "given back." Which in turn means that next Friday's NFP forecast of +213K may just end up being as low as 113K, with the print coming just in time for the Chairman to commence warming up the printers, and soon enough to where more QE will give the president the sufficient bounce in stocks he needs to mask the debt ceiling breach in September.

Blueprint For Accountability: The Wall Street - Washington Connection

more »

ECB lending contracting/Jim Willie/Mark Grant/Peter Tchir/Eric Sprott/

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 4 hours ago

Good evening Ladies and Gentlemen: Gold closed down by $26.90. today to a price of $1657.90..  Silver was again ambushed down 79 cents to $31.81. This raid was orchestrated by the bankers with  the Chinese gobbling up all of the metals that they can. as they wish to have both metals on their shores.  Tonight, Jim Willie has given a great commentary and he echoes what I have been telling you

Guest Post: Renewable Technologies And Our Energy Future - An Interview With Tom Murphy

Rising geopolitical tensions and high oil prices are continuing to help renewable energy find favour amongst investors and politicians. Yet how much faith should we place in renewables to make up the shortfall in fossil fuels? Can science really solve our energy problems, and which sectors offers the best hope for our energy future? To help us get to the bottom of this we spoke with energy specialist Dr. Tom Murphy, an associate professor of physics at the University of California. Tom runs the popular energy blog Do the Math which takes an astrophysicist’s-eye view of societal issues relating to energy production, climate change, and economic growth.
In the interview Tom talks about the following:
Why we shouldn’t get too excited over the shale boom
Why resource depletion is a greater threat than climate change
Why Fukushima should not be seen as a reason to abandon nuclear
Why the Keystone XL pipeline may do little to help US energy security
Why renewables have difficulty mitigating a liquid fuels shortage
Why we shouldn’t rely on science to solve our energy problems
Forget fusion and thorium breeders – artificial photosynthesis would be a bigger game changer

Is High Yield Credit Echoing 2011's Equity Nightmares?

For the last month or so, despite ongoing fund inflows, high-yield credit's performance has been generally muted. Compared to the exuberance of the equity market it has been downright flaccid and given how 'empirically' cheap it is on a normalized spread basis through the cycle (and the fortress-like balance sheets we hear so much about) some would expect it to be the high-beta long of choice in the new-new normal rally-to-infinity. However, it is not (and has not been since late January). There are some technical factors including a bifurcated HY credit market (between really 'good's and really 'bad's and illiquids and liquids), low rate implications on callability and negative convexity affecting price but the lack of share creation in the HYG (high-yield bond) ETF also suggests a lagging of support for high-yield credit. This is a very similar pattern to what was seen in Q1/Q2 last year as equity kept rallying away from a less sanguine credit market only to eventually collapse under the weight of its own reality-check. European credit and equity markets are much more in sync together as they have fallen recently but financials in the US exaggerate this credit-signaling-ongoing-concerns trend while equity goes on about its bullish business. Another canary dead?

Guest Post: What Do Bankers Dream Of?

When Wells Fargo CEO John Stumpf sleeps, he dreams -- like all good bankers -- about numbers.  He probably doesn't dream about the number 600 -- the number of foreclosure packages signed each day by his robosigners.  He probably doesn't dream about 14,420 -- the number of conveyance claims fraudulently submitted to HUD in exchange for $1.7 billion from the FHA [Inspector General report.] And, he almost certainly doesn't dream about his share of laughably small $25 billion penalty he and his fellow bankers might pay to slough off legal liability for the millions of Americans they've helped make homeless (don't know why they're bellyaching...they're all getting $2,000!) No, I imagine the number he fixates on is 35 -- the third rail around which his stock seems to go into spasms every time it gets close.   I'm exaggerating, of course; it's only happened three of the last four times since November 2007.  The other time, in September '08, the stock soared right through 35 to nearly 45 -- before plunging to 7.80 six months later. Stumpf might be dreaming about 35 a lot this week, as the stock's edging toward that buzzing rail yet again.  And, darn it, did the SEC have to pick this week to file that subpoena to compel him to hand over the documents he promised in regards to a $60 billion fraud investigation?  Now, with earnings coming up in a couple of weeks?

Commodities Weak As Stocks Drop To Short-Term Credit Reality

The last 90 minutes of the day dragged ES (the S&P 500 e-mini futures contract) back up to the safety of its VWAP on what seems to be some comments by Jamie Dimon on the Fed looking for much larger job creation (prompting QE3 moves) or another housing bottom-call? After what had been an ugly day in which stocks sold off (aggressively after the European close) back to the post-Bernanke reality that is the less sanguine credit markets, the USD weakened, commodities and stocks popped (led by financials), and Treasuries sold off (belly underperforming). It seems that no matter who comes on TV nowadays and says anything, the algos market will rally. By the close, Financials were the only sector in the green (as GS and JPM surged but not so much BAC or MS) but Materials, Energy, and Industrials were the worst. VIX managed to get above 17 before reversing back to unchanged and the term-structure steepened back a little. Gold (which dropped the most in 2 weeks today after Goldman's long call) remains the only metals/oil commodity higher on the week - though only marginally - as plunges in Oil and Silver bounced quite positively into the close. Stocks underperformed credit on the day in general but the low volume limp up into the close saw them even out and we note that as ES hit its VWAP - heavier negative delta volume came through somewhat suggesting this was an effort to ease institutional exit - as both NYSE and ES volume was above average. 30Y Treasuries are back to higher in yield for the week but this afternoon's selloff lifted yields 4-5bps off their earlier lows. Broad risk assets led the equity market down but quite coincidentally, the S&P ended the day almost perfectly in CONTEXT with risk assets and credit/vol (after a significant dislocation the last few days).

Chris Martenson Explains How Gold Is Manipulated... And Why That's Okay

The price of gold is being actively managed by central planners and their proxies. The main culprit here appears to be the US authorities, as the manipulation is most apparent in the US open gold market. For the most part, this 'management' has resulted in letting the price of gold rise, but not too much, or too quickly.  The price of gold has always been an object of interest for governments and central bankers. The reason is simple enough to understand: Gold is an objective measure of the degree to which fiat money is being managed well or managed poorly. As such, whenever paper money is being governed poorly, the price of gold becomes an important barometer. And this is why the actual price of gold is a strong candidate to be 'managed.' Or 'influenced'. Or 'manipulated'. Whichever word you prefer, they all convey the same intent. Some who are reading this are likely having an eye-rolling moment because they hold a belief that there is no conspiracy to manage the price of gold. This is an interesting belief to hold because it runs heavily against the odds. We could spend a lot of time discussing how a belief such as 'gold is not being manipulated' gets promoted and inserted into the popular consciousness, but we won't. Instead, we'll simply note that the people who hold this belief -- and you may be among them -- react to the concept at a visceral level, often with strong emotions such as anger or contempt, and even anxiety. When a strong emotional response surfaces during a conversation of ideas, it usually means that beliefs are in play -- neither facts nor logic. Experience has taught me that when someone becomes dismissive or angry or hostile when the idea of price manipulation is discussed, it's best to simply drop the conversation and move on. No combination of logic or facts is effective against a deeply-held belief. It's better to wait until some new evidence calls that belief into question, opening the door for revisiting the topic. But for those with an open mind, there is a very interesting trail of dots to connect.

Eric Sprott: The [Recovery] Has No Clothes

For every semi-positive data point the bulls have emphasized since the market rally began, there's a counter-point that makes us question what all the fuss is about. The bulls will cite expanding US GDP in late 2011, while the bears can cite US food stamp participation reaching an all-time record of 46,514,238 in December 2011, up 227,922 participantsfrom the month before, and up 6% year-over-year. The bulls can praise February's 15.7% year-over-year increase in US auto sales, while the bears can cite Europe's 9.7% year-over-year decrease in auto sales, led by a 20.2% slump in France. The bulls can exclaim somewhat firmer housing starts in February (as if the US needs more new houses), while the bears can cite the unexpected 100bp drop in the March consumer confidence index five consecutive months of manufacturing contraction in China, and more recently, a 0.9% drop in US February existing home sales. Give us a half-baked bullish indicator and we can provide at least two bearish indicators of equal or greater significance. It has become fairly evident over the past several months that most new jobs created in the US tend to be low-paying, while the jobs lost are generally higher-paying. This seems to be confirmed by the monthly US Treasury Tax Receipts, which are lower so far this year despite the seeming improvement in unemployment. Take February 2012, for example, where the Treasury reported $103.4 billion in tax receipts, versus $110.6 billion in February 2011. BLS had unemployment running at 9% in February 2011, versus 8.3% in February 2012. Barring some major tax break we've missed, the only way these numbers balance out is if the new jobs created produce less income to tax, because they're lower paying, OR, if the unemployment numbers are wrong. The bulls won't dwell on these details, but they cannot be ignored.

The Got PHYZZ? Report 3/28/12

by Marshall Swing, Silver Doctors:

The Got PHYZZ? Report
Silver increased $+0.78 this past reporting period and gold ended up $+37.90 but do you know how they got there?

Let’s look under the hood…!

Here are the CME Daily Bulletin reports from yesterday, ending the Commitment of Traders reporting period of March 21^st – March 27^th.

For Gold:

Gold Daily Bulletin

For Silver:

Silver Daily Bulletin

Notice the Most Active Volume Month (MAVM) is red and the 2^nd Most Active Volume Month (2MAVM) is green.  In gold, the MAVM is April and the 2MAVM is June, with the month of May in between them.  In silver the MAVM is May and the 2MAVM is July, with no month between them on the report. 

Read More @ SilverDoctors.com

20 Signs That We Are Witnessing The Complete Collapse Of Common Sense In America

from The Economic Collapse Blog:

What do you do when an entire nation begins to lose the capacity to think rationally? Many Americans spend a great deal of time criticizing the government, and there is certainly a lot to complain about, but it is not just the government that is the problem. All over America, people appear to be going insane. It is almost as if we have been cursed with stupidity. Sadly, this applies from the very top of our society all the way down to the very bottom. A lot of us find ourselves asking the following question much more frequently these days: “How could they be so stupid?” Unfortunately, we are witnessing a complete collapse of common sense all over America. Many people seem to believe that if we could just get Obama out of office or if we could just reform our economic system that our problems as a nation would be solved, but that is simply not true. Our problems run much deeper than that. The societal decay that is plaguing our country is very deep and it is everywhere. We are a nation that is full of people that do not care about others and that just want to do what is right in their own eyes. We hold ourselves out to the rest of the world as “the greatest nation on earth” and an example that everyone else should follow, and yet our own house is rotting all around us. The words “crazy”, “insane” and “deluded” are not nearly strong enough to describe our frame of mind as a country. America has become a sad, delusional old man that can’t even think straight anymore. The evidence of our mental illness is everywhere.
Read More @ TheEconomicCollapseBlog.com 

Assume the Worst, Hope for the Best

by Andy Hoffman, MilesFranklin.com:
In yesterday’s RANT, I posted testimony given by John Lear – one of the most decorated pilots in American history – that the “official” 9/11 account is fraudulent.  A man with no axe to grind, with four decades of commercial, cargo, and military flight experience, broke down the silly notion of untrained amateurs pulling off such Herculean tasks piece by piece, in simple language that any pilot would understand.  I have spent ten years analyzing 9/11 data to understand what happened, and although nothing can be definitively concluded, I have some pretty well-REASONED assumptions, which following this testimony became vastly more credible.
9/11 Airplane Affidavit By John Lear, Son Of Learjet Inventor
I sent this article to a handful of people in my “inner circle,” including my mother.  Mom is 69 years old, one of the most intelligent people I know, and in most aspects of life, a pragmatist.  She loves to engage in deep discussions of a plethora of complex topics, but has an obvious blind spot for anything related to the U.S. government.
Read More @ MilesFranklin.com

Gold and US Dollar Charts From Jim

March 28, 2012, at 12:37 pm
by Jim Sinclair 

Dear CIGAs,

Click either chart to enlarge in PDF format with commentary from Jim Sinclair.

 

 

Goldman Sachs Issues "Buy" On Gold; Gold Drops Lower

March 28, 2012, at 12:30 pm
by Dan Norcini 

Click here to visit Trader Dan Norcini’s blog…

Dear CIGAs,

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 recent economic data showing improvement in the US economy. However, the economic recovery is not strong enough to allow for higher rates and that coupled with Bernanke’s comments that acccomodative monetary policy will be required for the foreseeable future means that gold has overreacted to the downside.
Goldman is looking for another round of QE which will pressure the Dollar and thus drive gold prices higher.
Rest assured that the hedge fund long liquidation and fresh short selling of today is being met by solid buying from Goldman’s customers.
Also, I find it EXTREMELY TELLING that the bond market cannot seem to get much going to the upside today given the fact that the broader equity markets are swooning and the US Dollar is currently higher as the risk aversion trades come back on.
More…

 

 

In The News Today

March 28, 2012, at 12:17 pm
by Jim Sinclair 

My Dear Extended Family,

Have you taken notice of the dollar/yuan relationship lately? You might find it interesting.

Regards,
Jim

Jim Sinclair’s Commentary

This morning’s rumor in GB.

US, UK and France consider oil release to curb fuel prices
France is in talks with the United States and Britain on a possible release of strategic oil stocks to push fuel prices lower, French ministers said on Wednesday, four weeks before the country’s presidential election. By Telegraph staff and agencies
10:20PM BST 28 Mar 2012
Earlier in March, British sources said London was prepared to cooperate with Washington on a release of strategic oil stocks that was expected within months, in a bid to prevent fuel prices choking economic growth in what is also a US election year.
France’s Energy Minister Eric Besson told journalists after the weekly ministers’ meeting that the United States had asked France to join it in a possible emergency inventory release.
Such a release could happen "in a matter of weeks", Le Monde daily said on Wednesday, citing presidential sources.
"It is the United States which has asked and France has welcomed favourably this hypothesis," Besson said. He also said that the countries were awaiting conclusions from the International Energy Agency (IEA), which coordinates emergency stock releases in case of severe oil supply disruption.
The French budget minister and government spokeswoman, Valerie Pecresse, also told journalists France had joined the United States and the UK in IEA consultations to receive authorisation to draw from strategic stocks.
More…





Jim Sinclair’s Commentary

Slowly but consistently the Chinese are enfranchising the Yuan.

Currency Chart for CNY vs. USD over 2-years
This currency chart displays the value of the Chinese Yuan in relation to $1 US Dollar (CNY/USD) over a 2-year period. To view the currency graph over different time period please click the links below the chart.




Jim Sinclair’s Commentary

The gold takedown today is so transparent that it screams manipulation!

Ah well, infinite debt ceiling dead ahead. Makes me uncomfortable, alright.

Jim Sinclair’s Commentary

"Stop the insanity and get it all together."

The advice has not changed and is more meaningful now than then.

Jim Sinclair’s Commentary

It is interesting how both natural and financial disasters like the Gulf Oil spill and Japan’s pollution of the world are simply denied by MSM. There was no default in Greece, just a "proactive restructuring" as the sheeplez sleep on.

Do any of you recall the movie, Advice to Married Men? This is denial strategy.

1 of Japan’s damaged reactors has high radiation, no water, renewing doubts about stability By Associated Press, Published: March 27
TOKYO — One of Japan’s crippled nuclear reactors still has fatally high radiation levels and hardly any water to cool it, according to an internal examination Tuesday that renews doubts about the plant’s stability.
A tool equipped with a tiny video camera, a thermometer, a dosimeter and a water gauge was used to assess damage inside the No. 2 reactor’s containment chamber for the second time since the tsunami swept into the Fukushima Dai-ichi plant a year ago. The probe done in January failed to find the water surface and provided only images showing steam, unidentified parts and rusty metal surfaces scarred by exposure to radiation, heat and humidity.
The data collected from the probes showed the damage from the disaster was so severe, the plant operator will have to develop special equipment and technology to tolerate the harsh environment and decommission the plant, a process expected to last decades.
Tuesday’s examination with an industrial endoscope detected radiation levels up to 10 times the fatal dose inside the chamber. Plant officials previously said more than half of melted fuel has breached the core and dropped to the floor of the primary containment vessel, some of it splashing against the wall or the floor.
Particles from melted fuel have probably sent radiation levels up to dangerously high 70 sieverts per hour inside the container, said Junichi Matsumoto, spokesman for Tokyo Electric Power Co.
More…





Jim Sinclair’s Commentary

Do not expect to see reports on this in MSM.

BRICS summit to explore creation of bank
Group of five rising powers to discuss creation of "South-South" development bank in mould of World Bank. Last Modified: 28 Mar 2012 14:55
The proposal of a development bank is high on the agenda at the summit of the five BRICS bloc nations – Brazil, Russia, India, China and South Africa – starting on Thursday in New Delhi.
The proposal for a "South-South" development bank in the mould of the World Bank is one of the main points to be discussed by the group of five rising powers at the fourth BRICS summit.
The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.
"What will be discussed (in New Delhi) is the possibility of setting up a BRICS development bank for infrastructure projects, development, not only in member countries but also in developing countries," Maria Edileuza Fonteneles Reis, a senior Brazilian foreign ministry official, said.
Fernando Pimentel, the Brazilian industry and trade minister, told reporters in Brasilia last week, "the proposal to set up a BRICS bank, an international, investment bank of these five countries," is the main item on the agenda.
He said that the countries would sign a deal at the summit to study the creation of the bank.
Ambitious project
Sudhir Vyas, a senior Indian foreign ministry official, told reporters on Monday that the BRICS would have to determine how the bank would be structured and capitalised. Such an ambitious project would take time, he said.
"We don’t set up a bank every ordinary day," he said.
Pimentel said the proposed bank did not mean "abandoning multilateral mechanisms" such as the World Bank (WB) and the InterAmerican Development Bank (IDB) but was a response to today’s economic necessities.
More…




"A benchmark equity index derivative shared by the stock exchanges of the five Brics nations will be launched on Friday, the exchanges involved said earlier this month. They would be cross-listed, so can be bought in local currencies.
The leaders are also expected to sign agreements allowing their individual development banks to extend credit to other members in local currency, a step towards replacing the dollar as the main unit of trade between them."
More…





Jim Sinclair’s Commentary

Add this to the peace time Marshall law by presidential edict and you will understand the auction of my Sunnyview Farm promoted in the top left corner here on JSMineset.

On multiple occasions I have broadcast my message to you by my action of buying gold. All these changes are not for fun or wall paper. They are tools that are presently or going to be used in the future.

I have told you for years that if you did not have privacy do not try and create it as Big Brother watches everything, especially bank wires via the Swift system. Privacy is DEAD everywhere in the Western world.

Somebody in the family must protect the family, and make way for the extended family. Many times I have broadcast a message by example. Recall I stood ready to buy back every gold coin you bought at $400. Did you do anything? Recall the wager on the price of gold at $1650. Did you do anything?

You will recall the auction of my Sunnyfield Farm in 2015-2017. Will you have done anything?

Probably not.

10 Reasons Why Nothing You Do On The Internet Will EVER Be Private Again
The Internet is rapidly being transformed into a Big Brother control grid where privacy rights are being systematically strangled to death. The control freaks that run things have become absolutely obsessed with watching, tracking, monitoring and recording virtually everything that you do on the Internet. One thing that you can count on is that nothing you do on the Internet will ever be private again. In fact, if you are obsessed with privacy then the last place you want to be is on the Internet. Most Americans have absolutely no idea how far Internet surveillance has advanced in the past few years. At this point, it would be hard to imagine any place less private than the Internet. Do not ever put anything on the Internet that you would not want the authorities or your employer to hold you accountable for. Basically, the Internet is creating a permanent dossier on each one of us, and we contribute to this process by freely posting gigantic volumes of information about ourselves on social media websites such as Facebook and Twitter. The Internet is the greatest tool for mass communication that the world has perhaps ever seen, and it gives average citizens the ability to communicate with each other like never before, but there is also a downside to using the Internet. Everything that we do on the Internet is being watched, monitored and recorded and there is no longer any such thing as Internet privacy. If you think that you still have any privacy on the Internet, then you are either ignorant of what is going on or you are being delusional.
The following are 10 reasons why nothing you do on the Internet will ever be private again….
#1 The Federal Government Can Now Retain Your Internet Activity For Five Years – Even If You Have No Links To Terrorism
In the past, the National Counterterrorism Center could only retain information about you for 180 days if you did not have any links to terrorism.
Well, that has now completely changed.
Attorney General Eric Holder has signed new guidelines which will now allow the National Counterterrorism Center to hold on to your private information (including your Internet activity) for five years.
But an extra four and a half extra years is no big deal, right?
#2 Potential Employers Are Demanding To See Your Internet Activity
In the past, potential employers would pull up the social media profiles of job candidates in order to get a better idea of who they might be hiring.
But now, many potential employers are actually demanding the passwords to the Facebook accounts of job applicants.
The following comes from a recent CBS News report….
The bad news is that employers are increasingly asking job seekers for their Facebook and other social-media passwords as part of the process of vetting them.
While it’s unclear how widespread that practice is, there’s plenty of anecdotal evidence to suggest that it is happening with increasing frequency, as CBS MoneyWatch’s Suzanne Lucas details. You can, of course, refuse to give a job interviewer your passwords. But expect your employment application to hit the round file, or the trash, if you don’t cooperate.
#3 Law Enforcement Is Watching You
Do you remember the father that posted that "Facebook Parenting for the troubled teen" video that went wildly viral all over the Internet earlier this year?
That video was watched more than 31 million times, but it also resulted in both the police and Child Protective Services officials visiting his home.
So be careful what you post on YouTube. If you post something that they don’t like, law enforcement personnel may come knocking on your door.
More…





Jim Sinclair’s Commentary

This looks close enough to be the true range of gold at $1700 to $2110.

"The analysts forecast that gold will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6, and $1,940 over the next year. "
Gold Price ‘Too Low’: Goldman Sachs Wednesday, 28 Mar 2012 | 7:06 AM ET
By: Catherine Boyle and Madeline Laskoski
The price of gold, one of the most eagerly watched indicators of market confidence, is currently “too low” relative to real interest rates, according to commodities analysts at Goldman Sachs. The analysts forecast that will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6, and $1,940 over the next year.
“At current price levels gold remains a compelling trade but not a long-term investment,” they wrote in a note.
They argue that U.S. real interest rates are the most important driver of the price of gold in dollars – but that this relationship broke down late last year and has not yet returned to the level current negative or low yields on 10-year Treasurys imply. The low yields have come following the Federal Reserve’s Operation Twist – which involved the central bank buying up longer-term Treasurys and selling shorter-term Treasurys and helped restore the markets’ confidence in the U.S.
“We believe that despite last fall’s decline in 10-year TIPS yields, the gold market may have been expecting that real rates would soon be rising along with better economic growth, leading to a sharp decline in net speculative length in gold futures,” the analysts said.
“Our U.S. economists expect subdued growth and further easing by the Fed in 2012, which should push the market’s expectations of real rates back down near 0 basis points and gold prices back to our 6 month forecast.”
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