India Considers Banning Banks From Selling Gold Bullion Coins
Dissecting Operation High Roller | Massive Cyber Attack in USA, Europe and Latin America Siphons $2.5 Billion From Banks
In
an excellent summary of the world's interconnected nature, reliance on
everyone else to solve their problems, and Europe's epicentric
catastrophe, Nouriel Roubini joined Bloomberg TV's Tom Keene for some
serious truthiness and doomsaying. From the 'slowdown/recession becoming
a depression' to 1930s CreditAnstalt comparisons and Germany's lack of trust that a few years of abstinence will regain peripheral Europe's virginity,
the original Dr. Doom along with Ian 'G-Zero' Bremmer offer much food
for thought as to the various scenarios as investors anxiously await an
expected central bank response to the 19th failed summit and how "we will be lucky if we end up like Japan" as
he concludes: "It’s getting worse, there’s already a sovereign debt
crisis, a banking crisis, a balance of payment crisis, an economic
crisis and all of those things together are getting worse."
While
it is seeming common knoweldge that the state of the economy has a
significant bearing on the outcome of the presidential election in the
US, Barclays notes that in the case of an incumbent running, economic performance appears to be most important.
The three presidents who failed in a re-election bid in the post-war
period (Gerald Ford in 1976, Jimmy Carter in 1980 and George Bush, Sr.
in 1992) did so against a backdrop of weak growth, high unemployment,
and low consumer confidence. These same factors all pose significant headwinds to the current incumbent.
To overcome them, history suggests that unemployment would need to keep
trending down and consumer sentiment would need to strengthen prior to
the vote in November.
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My Dear Friends,
Jim Sinclair’s Commentary
Jim Sinclair’s Commentary
Stockton to file for bankruptcy, will be largest U.S. city to fail
The Stockton City Council halts bond payments, slashes employee benefits and adopts an emergency budget as mediation ends. The Central Valley city becomes the largest in the U.S. to seek bankruptcy protection. By Diana Marcum, Los Angeles Times
June 26, 2012, 10:04 p.m.
STOCKTON — This Gold Rush-era port city, an epicenter of California’s agricultural exports, will become the nation’s largest city to seek protection under the U.S. bankruptcy code after its City Council on Tuesday stopped bond payments, slashed employee health and retirement benefits and adopted a day-to-day survival budget.
City Manager Bob Deis likened the process to cutting off an arm to save the body. He is expected to file bankruptcy papers immediately.
A Delta wind had scrubbed the Central Valley sky blue as residents gathered hours early for the 5:30 p.m. meeting.
Most knew what the night held; bankruptcy has been a long time coming. Stockton has been in negotiations with its creditors since late March under AB 506, a new California law requiring mediation before a municipality can file for reorganization of debt. It was the first use of the law, and policy analysts who watched its torturous and tedious progress have titled their report on it "Death by a Thousand Meetings." Mediations ended Monday at midnight.
More…
Jim Sinclair’s Commentary
While Banks Crumble, The Next Leg Up For Gold Draws Near By Peter Krauth, Global Resources Specialist
June 27, 2012
Something’s afoot in the world of high stakes finance.
The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike.
As part of the Bank of International Settlements (BIS), the BCBS is reviewing the upcoming new Basel III rules. That may sound arcane to you but I promise it’s not.
Though rarely discussed in the mainstream press, the all-important Bank of International Settlements is essentially a global central bank to the world’s central banks.
Its goal is ostensibly to provide global stability to the monetary and financial systems.
And in a surprise twist that only a few years ago would have been considered preposterous, the BCBS is entertaining whether gold should qualify as a full-fledged Tier 1 capital asset.
Currently, the precious metal is relinquished to a Tier 3 status, deserving no more than a 50% weighting at that.
More…
Jim Sinclair’s Commentary
Federal Reserve Charter Submitted by rben on Fri, 07/22/2011 – 12:03. Permalink
I think I found the answer on the 100 year FED charter question.
Look at: https://www.kitcomm.com/showthread.php?t=85432&page=6
Post #54 says the following:
To put this discussion to rest.
The original Federal Reserve Act of 1913 did indeed provide for expiration of the corporate "power" of the twelve Federal Reserve Banks to exist in 20 years from the banks’ organization (not the adoption of the Act).
Sec. 4 … the said Federal reserve bank shall become a body corporate and as such … shall have power: … Second. To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law. Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221).
However, this 20-year corporate life was changed to perpetual in 1927 by Act of Feb. 25, 1927 (44 Stat. 1234) as follows:
More…
Notes From Underground: Why Is It That Angela Merkel IS the DESIGNATED DRIVER FOR WORLD FINANCE?? Yra Harris
The G-20 meeting in Mexico resulted in Chancellor Merkel being the PINATA for the other 19 guests as they beat her with the stick of moral certainty. U.S. Treasury Secretary Geithner and President Obama were adamant that it was Germany’s moral responsibility to capitulate and be the co-signer for the European Project and thus the global financial system. The onus was put on Frau Merkel to take the great leap forward and have Germany underwrite all the profligate programs of European nations.
THE QUESTION HAS TO BE ASKED: WHY DOES MERKEL HAVE TO BE THE SOBER LEADER IN A WORLD OF THOSE DRUNK ON EASY CREDIT? It is interesting that OBAMA FAILED TO LEAD ON BOWLES-SIMPSON AS IT WAS SLOUGHED OFF THAT THE DEMOCRATIC BASE WOULD NOT SUPPORT THE RESULTS OF OBAMA’S OWN COMMISSION and YET IT IS MERKEL WHO BEARS THE ONUS OF MAKING THE POLITICAL SACRIFICE? AND THE COMING U.S. FISCAL CLIFF, WHERE IS THE IMPETUS FOR LEADERSHIP FROM CONGRESSIONAL REPUBLICANS AND DEMOCRATS?
The world’s financial kingpins are all crying for Germany to lead and do the correct thing to save the global financial system, but again, there is no shared political sacrifice! The markets are all TWISTED as rumors fly about whether MERKEL WILL OPT TO SAVE THE GLOBAL CAPITALIST SYSTEM BY AGREEING TO EUROBOND FORMULA BASED ON A FISCAL UNION. As the old commercial goes: WILL SHE OR WON’T SHE, ONLY HER FINANCE MINISTER KNOWS.
It is interesting how Geithner wants others to take the political risk allowing others a free pass. George Soros has another piece in the Financial Times today, “How To Shift Germany Out Of Its ‘CAN’T DO’ MODE,” in which he tries to craft a plan for MERKEL and Germany to follow, calling for a EUROPEAN FINANCIAL AUTHORITY and BANKING UNION and delaying the need a greater political union.
Soros believes that it is paramount for Germany to accede to the demands of Italy and France for less austerity and more growth, otherwise Germany will wind up with itself as the “CENTER OF AN EMPIRE AND PUT THE PERIPHERY INTO A PERMANENTLY SUBORDINATED POSITION.” He goes on to say “THAT IS NOT WHAT MS. MERKEL OR THE MAJORITY OF GERMANS STAND FOR.” This is a problem, for too many people all think for the Germans while then letting the GERMAN GENERAL WILL SPEAK FOR ITSELF. THIS IS WHY THE MARKET IS CAUGHT IN THE CROSSFIRE OF POLITICS: A fragile global economy and the failure of politicians to lead.
***QUICK HITTER: There was a WSJ article today discussing Japanese auto makers shifting more production out of Japan because of the strong YEN. This morning in Europe and the U.S., the YEN was strong as the JAPANESE DIET moved to raise the Vat tax. The market is looking at the sales tax as being a strain of the economy … again. However, it may mean that the BOJ and MOF may move to weaken the YEN as a counter move to the INCREASED TAX TO IMPROVE THE BUDGET SITUATION. A weaker YEN would stimulate growth and may be a quid pro quo to the fiscal conservatism of some Japanese lawmakers and BOJ policymakers. Hey, how about buying some EUROBONDS IN A COORDINATED GLOBAL EFFORT?
More…
Dear Jim
I have been long gold for 10 years now. I have read your site for 6 years I have also studied monetary systems and their collapse with Prof. Fekete amongst others.
I have read Armstrong.
UNTIL THE LINKED CHART TURNS NORTH THERE IS NO INFLATION. THIS IS NOT THE 1980’s OVER AGAIN.
Without additional QE we tank and take every bank in the world down with us , that obviously cannot be allowed to happen , but deflation as it is currently occurring is happening not because the monetary base hasn’t grown exponentially (it has with every QE injection). But the money IS NOT MOVING.
If it doesn’t move it may as well not be there.
Don’t stress yourself you are 73 , relax like Mr. Fred , don’t get prickly with our arch historian, he may have a point and it may be painted in the graph I linked.
Regards,
Adrian
Dear Adrian,
Jim,
I’ve followed your site for four years. Like you, I was introduced to the velocity of money concept by the Chicago school which I attended between 1976 and 1978. I understand exactly what you are trying to communicate to your readers about currency-induced cost push inflation which accelerates to "escape velocity" when the desire to hold paper currency becomes too risky in the minds of the masses, and they decide (literally overnight) that the time has come to "escape" that currency before it is totally destroyed.
Just tell your readers to leapfrog the archaic mentality that surrounds the "velocity of money" and think in terms of the "escape velocity of currency" which is what will happen when currency induced cost push inflation achieves critical mass during some 24-48 hour long period sometime in the not-too-distant future.
My sincere thanks for helping us keep the faith, and hold our gold.
CIGA Mike
Mr. Sinclair,
In all of your decades monitoring and investing in markets, could you have ever imagined a more perfect storm for the global fiat system perpetrated by world governments, and the world believing that printing more money was the answer than now? It seems so unbelievable that all these billionaires and fund managers could reject thousands of years of history. It just makes me believe even more wholeheartedly that we are on the verge of a great awakening, maybe not even seen since the collapse of Rome where so many people could be made to believe the unbelievable. I hope these days aren’t weighing to heavily on you by people making you the defender of gold, when there is no doubt it can surely stand on its own.
Thank You,
CIGA Theodore
Theodore,
Eric,
Increasing Doubts, More Liquidity, And Panic Coming CIGA Eric
Liquidity will be provided through convoluted means if necessary to postpone the inevitable. However, the longer politicians talk, stare down markets in order to support external agendas – as long as I live, and pursue ex-post rather than ex-ante policies, confidence will only erode further. All hell breaks loose when doubts about governments’ ability to solve the problem described below goes supercritical within society.
Headline: Don Coxe – Get Ready, Banks to Collapse In Europe
It used to be that the number that would solve things was $500 billion, then it got to $1 trillion, and now I’m reading responsible people who say, ‘We will really need about $2 trillion over the next twelve months because of debts maturing.’
I just don’t see where that’s going to come from because the European Central Bank doesn’t have money. The IMF has lined up $450 billion, including about $34 billion from China, but that’s not going to be dispensed if you realize that it would be swallowed up in a matter of weeks, and they would be back for more.
She (Christine Lagard) is not going to drain the IMF’s money. So they are going to say, ‘We don’t want the IMF to become purely a eurozone financing bureau.’ It was set up to handle emerging economies, not submerging, old European economies.
As for the European Stability Fund, that’s about $400 billion, and it’s pretty much spoken for. So I don’t know where this money is going to come from.
Meanwhile, within the banking system there is a more immediate problem, and that’s where the $2 trillion (figure) comes from. The $2 trillion includes the money that’s needed, within the European banking system, to cover the fact that they have borrowed huge amounts of money, in dollars, under currency swap arrangements.
The Fed has been supplying a lot of these. A lot of this stuff is not being rolled over. As soon as it matures, they take the money out. So the European banking system is short hundreds of billions in dollar liabilities. That’s something that is of more immediate concern because you’ve got dozens and dozens and dozens of banks that are having to come to the well every other week.
So it could actually be a banking thing that does it, before the governments do. And the governments aren’t really in a position to subsidize their banks when they are desperately coming to central authorities to fund themselves.
If I had to say what will burst the thing, it will be banks that do it. And if banks start to go down, we know from 2008, when banks start to crumble, then the whole system falls. You can postpone the collapse of a government, but you can’t postpone the collapse of a bank if the people are lined up outside and saying, ‘Give me my money.’”
Coxe also added: “Gold’s problem, why it has maxed-out at and pulled back to $1,500, is people say, ‘Well, it had a big move, going from $250 to that ($1,900) level, but it’s still just a theoretical asset, it isn’t doing anything.’ So the moment gold comes into the system and starts doing things, I suspect that’s when we are going to get a significant up-move in gold.”
Source: kingworldnews.com
More…
Jim,
While the West is busy in trying to solve the crisis, China’s Wen goes shopping, proposes a free-trade deal with the Mercosur bloc and signs several deals (swap line, credit line for infrastructure projects…) with Latin American countries, bypassing the West and the dollar.
Regards,
CIGA Christopher
UPDATE 4-China’s Wen offers $10 billion Latin America credit line Tue Jun 26, 2012 8:50pm EDT
By Anthony Esposito
SANTIAGO, June 26 (Reuters) – Chinese Premier Wen Jiabao wrapped up a tour of resource-rich Latin America on Tuesday by offering $10 billion in credit for infrastructure projects and calling for a joint push to combat protectionism.
Wen proposed a free-trade deal with the Mercosur bloc and signed a series of investment accords during the trip to the region, a key source of agricultural and mineral commodities and a growing market for Chinese exports.
"The Chinese government … will continue to offer economic assistance to countries in the region that are interested," Wen told the U.N. regional economic body ECLAC in Chile, the world’s No. 1 copper exporter.
He said China’s Development Bank would implement a $10 billion credit program for infrastructure projects. He also said China would create a $5 billion fund for cooperation between China and Latin America and the Caribbean.
"We have to combat trade protectionism, broaden the mutual openness of our markets, optimize the trade structure and diversify cooperation in terms of customs and quality control," Wen said. He added that China aims to nearly double trade with Latin America in five years to over $400 billion.
More…
Stockton, Calif., to become largest city to declare bankruptcy CIGA Eric
The city of Detroit defaulted on their bonds in 1932. While Detroit may not have sought the protection of bankruptcy, it took them until 1963 pay off these bonds in nominal or vastly depreciated dollars. Municipalities are defaulting. This means currencies will depreciate and history will repeat. Headline: Stockton, Calif., to become largest city to declare bankruptcy
(CBS/AP) STOCKTON, Calif. – Officials in Stockton said Tuesday that mediation with creditors has failed, meaning the Central California city is set to become the largest American city ever to declare bankruptcy. City Manager Bob Deis said officials were unable to reach a deal to restructure hundreds of millions of dollars of debt under a new state law designed to help municipalities avoid bankruptcy. Monday marked the three-month deadline for negotiations. "Unfortunately we have no comprehensive set of agreements with our creditors that would eliminate the deficit and avoid insolvency," Deis said at a City Council meeting. He said, however, that the city was still negotiating with some creditors and could reach deals with as many as one-third of them. "We think Chapter 9 protection is the only choice left. If we get any agreements, those will be honored in Chapter 9," Deis said. The City Council on Tuesday voted 6-1 to adopt a special bankruptcy budget to address Stockton’s $26 million shortfall if the city files for bankruptcy, as expected, by Friday. The river port city of 290,000 in Central California has seen its property taxes and other revenues decline, while expensive investments and generous retiree benefits drained city coffers. In the past three years, officials in the city that was slammed by the collapse of the housing market dealt with $90 million in deficits through a series of drastic cuts. They eliminated one-fourth of the city’s police officers, one-third of the fire staff, and 40 percent of all other employees. They also cut wages and medical benefits.
Source: cbsnews.com
More…
by SGT
People like to ask about dates. “When do you think the collapse will happen?” they ask. What are your thoughts on the Mayan calendar? How ’bout December 21st, 2012?
Most of us informed and awake folks aren’t interested in trying to predict specific dates. That’s an art best left to Nostradamus. That said, highly respected truth tellers James Turk and John Williams have both tied dates to predictions. In an interview with James Turk he told me that he thinks we will see $400 silver and $8,000 gold some time between 2013-2015. And John Williams firmly believes the die has been cast for hyperinflation in the United States, likely beginning in 2014.
Over the past 48 hours we’ve stumbled across three separate pieces of information, all predicting essentially the exact same thing regarding a fall 2012 economic collapse. Serendipity or coincidence, it’s information I want to pass on. As always, discussion is welcomed below.
The first warning is from a St. Louis based police officer who called into the Alex Jones radio show on Sunday, June 24th. The second warning comes our way via the Silver Doctors. And the third came today from unflappable Director of UBS Floor Operations Art Cashin. All three warnings are presented here for your benefit and consideration: Read More…
by Jim Willie, Silver Doctors:
-Numerous end game items can be identified, all unusual, all strange, all dangerous
-Operation Twist is nothing but pure QE with deception
-Bank recapitalization is coming, but until they talk about $10 trillion used, nothing will change-
-New Basel III rules might elevate gold to a Tier-1 level, possibly forcing widespread bank purchases
-Absent gold in big Western banks might actually hasten a string a bank failure events
-An army of 600 highly paid accountant experts are rummaging through a big dead Wall Street bank to check for life signs
-China is recasting large gold bars into 1-kg bars, in preparation for a new trade system (also to check for tungsten formally?)
-New money and new debt are both failing, in midst of massive slippage on desired effects
-Operation Twist is actually buying all the 30-year USTBonds ever issued
-Beware of a perverse USDollar backwardation, as paper is given a premium over contracts and electronic forms
-The Draghi LTRO funds turned out to be stillborn baby that further infected the European banks
-Bank runs are spreading slowly but in a recognizable manner in Italy, Spain, France, and the UK
-The Greek Govt debt default is the unavoidable inevitable event upcoming, to act like a lit fuse
-Debt is being widely contradicted as wealth, in all forms of assets
Gold will be the last asset standing, despite a wave of criminal activity within the Gold market
Read More @ SilverDoctors.com
06/27/2012 - 11:00
Dissecting Operation High Roller | Massive Cyber Attack in USA, Europe and Latin America Siphons $2.5 Billion From Banks
06/27/2012 - 11:57
US Dollar: Global Liquidity Is Tightening
I think it is very difficult to be bullish about the US dollar or anything
in the US economy. But, compared to other currencies, the dollar is now a
relatively safe currency.
Global liquidity is tightening and so the dollar probably will continue to
appreciate, most likely also against Euro. But it is not that the US dollar
is particularly good. It is just less bad for the time being. - *in
Economic Times *
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Golden Lies In The Media
*The big banks have becoming hedge funds but are backed by the Fed and
taxpayer funds. You think that provides them with a competitive advantage?
The Fed encourages and abets big banks to trade like hedge funds so the
banks can generate, even craft, earnings to keep them afloat. *Bill King,
The King Report
If you woke up this morning and read some of the headlines that pertain to
the housing market, you might be convinced that the bottom is in and the
next bull market in housing is starting. Of course, it's funny how
homebuilder, realtor and Government numbers diverge from one o... more »
Roubini Confident Europe's Born Again Virigns Will Not Satisfy Germany
In
an excellent summary of the world's interconnected nature, reliance on
everyone else to solve their problems, and Europe's epicentric
catastrophe, Nouriel Roubini joined Bloomberg TV's Tom Keene for some
serious truthiness and doomsaying. From the 'slowdown/recession becoming
a depression' to 1930s CreditAnstalt comparisons and Germany's lack of trust that a few years of abstinence will regain peripheral Europe's virginity,
the original Dr. Doom along with Ian 'G-Zero' Bremmer offer much food
for thought as to the various scenarios as investors anxiously await an
expected central bank response to the 19th failed summit and how "we will be lucky if we end up like Japan" as
he concludes: "It’s getting worse, there’s already a sovereign debt
crisis, a banking crisis, a balance of payment crisis, an economic
crisis and all of those things together are getting worse."Re-Election Hopes? "It's Obama's Economy, Stupid!"
While
it is seeming common knoweldge that the state of the economy has a
significant bearing on the outcome of the presidential election in the
US, Barclays notes that in the case of an incumbent running, economic performance appears to be most important.
The three presidents who failed in a re-election bid in the post-war
period (Gerald Ford in 1976, Jimmy Carter in 1980 and George Bush, Sr.
in 1992) did so against a backdrop of weak growth, high unemployment,
and low consumer confidence. These same factors all pose significant headwinds to the current incumbent.
To overcome them, history suggests that unemployment would need to keep
trending down and consumer sentiment would need to strengthen prior to
the vote in November.
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My Dear Friends,
Here is one for the community to confirm.
In 1913 the mandate that created the Federal Reserve Bank is by some
considered to be for a term of 100 years. If that is true it will expire
soon in 2013.
Please email me your findings and source.
Regards,
Jim
Jim
Jim Sinclair’s Commentary
The longer the Fed plays chicken the greater QE to infinity will be.
Jim Sinclair’s Commentary
You can be sure there will be many more.
Stockton to file for bankruptcy, will be largest U.S. city to fail
The Stockton City Council halts bond payments, slashes employee benefits and adopts an emergency budget as mediation ends. The Central Valley city becomes the largest in the U.S. to seek bankruptcy protection. By Diana Marcum, Los Angeles Times
June 26, 2012, 10:04 p.m.
STOCKTON — This Gold Rush-era port city, an epicenter of California’s agricultural exports, will become the nation’s largest city to seek protection under the U.S. bankruptcy code after its City Council on Tuesday stopped bond payments, slashed employee health and retirement benefits and adopted a day-to-day survival budget.
City Manager Bob Deis likened the process to cutting off an arm to save the body. He is expected to file bankruptcy papers immediately.
A Delta wind had scrubbed the Central Valley sky blue as residents gathered hours early for the 5:30 p.m. meeting.
Most knew what the night held; bankruptcy has been a long time coming. Stockton has been in negotiations with its creditors since late March under AB 506, a new California law requiring mediation before a municipality can file for reorganization of debt. It was the first use of the law, and policy analysts who watched its torturous and tedious progress have titled their report on it "Death by a Thousand Meetings." Mediations ended Monday at midnight.
More…
Jim Sinclair’s Commentary
Here is a different view from the legion of gold bears. A tier one
asset class for gold is another step forward for this currency.
While Banks Crumble, The Next Leg Up For Gold Draws Near By Peter Krauth, Global Resources Specialist
June 27, 2012
Something’s afoot in the world of high stakes finance.
The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike.
As part of the Bank of International Settlements (BIS), the BCBS is reviewing the upcoming new Basel III rules. That may sound arcane to you but I promise it’s not.
Though rarely discussed in the mainstream press, the all-important Bank of International Settlements is essentially a global central bank to the world’s central banks.
Its goal is ostensibly to provide global stability to the monetary and financial systems.
And in a surprise twist that only a few years ago would have been considered preposterous, the BCBS is entertaining whether gold should qualify as a full-fledged Tier 1 capital asset.
Currently, the precious metal is relinquished to a Tier 3 status, deserving no more than a 50% weighting at that.
More…
Jim Sinclair’s Commentary
Put of the community.
Federal Reserve Charter Submitted by rben on Fri, 07/22/2011 – 12:03. Permalink
I think I found the answer on the 100 year FED charter question.
Look at: https://www.kitcomm.com/showthread.php?t=85432&page=6
Post #54 says the following:
To put this discussion to rest.
The original Federal Reserve Act of 1913 did indeed provide for expiration of the corporate "power" of the twelve Federal Reserve Banks to exist in 20 years from the banks’ organization (not the adoption of the Act).
Sec. 4 … the said Federal reserve bank shall become a body corporate and as such … shall have power: … Second. To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law. Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221).
However, this 20-year corporate life was changed to perpetual in 1927 by Act of Feb. 25, 1927 (44 Stat. 1234) as follows:
More…
Notes From Underground: Why Is It That Angela Merkel IS the DESIGNATED DRIVER FOR WORLD FINANCE?? Yra Harris
The G-20 meeting in Mexico resulted in Chancellor Merkel being the PINATA for the other 19 guests as they beat her with the stick of moral certainty. U.S. Treasury Secretary Geithner and President Obama were adamant that it was Germany’s moral responsibility to capitulate and be the co-signer for the European Project and thus the global financial system. The onus was put on Frau Merkel to take the great leap forward and have Germany underwrite all the profligate programs of European nations.
THE QUESTION HAS TO BE ASKED: WHY DOES MERKEL HAVE TO BE THE SOBER LEADER IN A WORLD OF THOSE DRUNK ON EASY CREDIT? It is interesting that OBAMA FAILED TO LEAD ON BOWLES-SIMPSON AS IT WAS SLOUGHED OFF THAT THE DEMOCRATIC BASE WOULD NOT SUPPORT THE RESULTS OF OBAMA’S OWN COMMISSION and YET IT IS MERKEL WHO BEARS THE ONUS OF MAKING THE POLITICAL SACRIFICE? AND THE COMING U.S. FISCAL CLIFF, WHERE IS THE IMPETUS FOR LEADERSHIP FROM CONGRESSIONAL REPUBLICANS AND DEMOCRATS?
The world’s financial kingpins are all crying for Germany to lead and do the correct thing to save the global financial system, but again, there is no shared political sacrifice! The markets are all TWISTED as rumors fly about whether MERKEL WILL OPT TO SAVE THE GLOBAL CAPITALIST SYSTEM BY AGREEING TO EUROBOND FORMULA BASED ON A FISCAL UNION. As the old commercial goes: WILL SHE OR WON’T SHE, ONLY HER FINANCE MINISTER KNOWS.
It is interesting how Geithner wants others to take the political risk allowing others a free pass. George Soros has another piece in the Financial Times today, “How To Shift Germany Out Of Its ‘CAN’T DO’ MODE,” in which he tries to craft a plan for MERKEL and Germany to follow, calling for a EUROPEAN FINANCIAL AUTHORITY and BANKING UNION and delaying the need a greater political union.
Soros believes that it is paramount for Germany to accede to the demands of Italy and France for less austerity and more growth, otherwise Germany will wind up with itself as the “CENTER OF AN EMPIRE AND PUT THE PERIPHERY INTO A PERMANENTLY SUBORDINATED POSITION.” He goes on to say “THAT IS NOT WHAT MS. MERKEL OR THE MAJORITY OF GERMANS STAND FOR.” This is a problem, for too many people all think for the Germans while then letting the GERMAN GENERAL WILL SPEAK FOR ITSELF. THIS IS WHY THE MARKET IS CAUGHT IN THE CROSSFIRE OF POLITICS: A fragile global economy and the failure of politicians to lead.
***QUICK HITTER: There was a WSJ article today discussing Japanese auto makers shifting more production out of Japan because of the strong YEN. This morning in Europe and the U.S., the YEN was strong as the JAPANESE DIET moved to raise the Vat tax. The market is looking at the sales tax as being a strain of the economy … again. However, it may mean that the BOJ and MOF may move to weaken the YEN as a counter move to the INCREASED TAX TO IMPROVE THE BUDGET SITUATION. A weaker YEN would stimulate growth and may be a quid pro quo to the fiscal conservatism of some Japanese lawmakers and BOJ policymakers. Hey, how about buying some EUROBONDS IN A COORDINATED GLOBAL EFFORT?
More…
Dear Jim
I have been long gold for 10 years now. I have read your site for 6 years I have also studied monetary systems and their collapse with Prof. Fekete amongst others.
I have read Armstrong.
UNTIL THE LINKED CHART TURNS NORTH THERE IS NO INFLATION. THIS IS NOT THE 1980’s OVER AGAIN.
Without additional QE we tank and take every bank in the world down with us , that obviously cannot be allowed to happen , but deflation as it is currently occurring is happening not because the monetary base hasn’t grown exponentially (it has with every QE injection). But the money IS NOT MOVING.
If it doesn’t move it may as well not be there.
Don’t stress yourself you are 73 , relax like Mr. Fred , don’t get prickly with our arch historian, he may have a point and it may be painted in the graph I linked.
Regards,
Adrian
Dear Adrian,
Currency induced cost push inflation will make the velocity of money
explode when it occurs in full. It will be the fastest spike up in
history. It will be a currency, not business activity event.
Your geniuses are not that intelligent. They have no clue of the
impact of currency induced cost push inflation. Thanks, but I do not
need your lesson on Velocity of Money. It has been well considered and
researched in past situation of similar occurrences.
I got lesson on Velocity of Money many decades ago from the Chicago
School. Don’t piss off old guys who are widowers as we have nothing to
risk. Stay with your historian that used the gold gang for his own
purposes, and now is kissing the ass of who he next wants a favor from.
By the time your beloved chart shows you the spike the entire event
will be over and you will find yourself in a strange new world you do
not understand.
How the hell can you think that I failed to consider the Velocity of Money?
Jim
Jim,
I’ve followed your site for four years. Like you, I was introduced to the velocity of money concept by the Chicago school which I attended between 1976 and 1978. I understand exactly what you are trying to communicate to your readers about currency-induced cost push inflation which accelerates to "escape velocity" when the desire to hold paper currency becomes too risky in the minds of the masses, and they decide (literally overnight) that the time has come to "escape" that currency before it is totally destroyed.
Just tell your readers to leapfrog the archaic mentality that surrounds the "velocity of money" and think in terms of the "escape velocity of currency" which is what will happen when currency induced cost push inflation achieves critical mass during some 24-48 hour long period sometime in the not-too-distant future.
My sincere thanks for helping us keep the faith, and hold our gold.
CIGA Mike
Mr. Sinclair,
In all of your decades monitoring and investing in markets, could you have ever imagined a more perfect storm for the global fiat system perpetrated by world governments, and the world believing that printing more money was the answer than now? It seems so unbelievable that all these billionaires and fund managers could reject thousands of years of history. It just makes me believe even more wholeheartedly that we are on the verge of a great awakening, maybe not even seen since the collapse of Rome where so many people could be made to believe the unbelievable. I hope these days aren’t weighing to heavily on you by people making you the defender of gold, when there is no doubt it can surely stand on its own.
Thank You,
CIGA Theodore
Theodore,
You are so correct.
Jim
Eric,
No one can predict the actions of egomaniac politicians that do not
know the first thing about economics. Now even Germany is starting to
hurt on their exports. It is not only Euroland that is about to take an
historic header.
Jim
Increasing Doubts, More Liquidity, And Panic Coming CIGA Eric
Liquidity will be provided through convoluted means if necessary to postpone the inevitable. However, the longer politicians talk, stare down markets in order to support external agendas – as long as I live, and pursue ex-post rather than ex-ante policies, confidence will only erode further. All hell breaks loose when doubts about governments’ ability to solve the problem described below goes supercritical within society.
Headline: Don Coxe – Get Ready, Banks to Collapse In Europe
It used to be that the number that would solve things was $500 billion, then it got to $1 trillion, and now I’m reading responsible people who say, ‘We will really need about $2 trillion over the next twelve months because of debts maturing.’
I just don’t see where that’s going to come from because the European Central Bank doesn’t have money. The IMF has lined up $450 billion, including about $34 billion from China, but that’s not going to be dispensed if you realize that it would be swallowed up in a matter of weeks, and they would be back for more.
She (Christine Lagard) is not going to drain the IMF’s money. So they are going to say, ‘We don’t want the IMF to become purely a eurozone financing bureau.’ It was set up to handle emerging economies, not submerging, old European economies.
As for the European Stability Fund, that’s about $400 billion, and it’s pretty much spoken for. So I don’t know where this money is going to come from.
Meanwhile, within the banking system there is a more immediate problem, and that’s where the $2 trillion (figure) comes from. The $2 trillion includes the money that’s needed, within the European banking system, to cover the fact that they have borrowed huge amounts of money, in dollars, under currency swap arrangements.
The Fed has been supplying a lot of these. A lot of this stuff is not being rolled over. As soon as it matures, they take the money out. So the European banking system is short hundreds of billions in dollar liabilities. That’s something that is of more immediate concern because you’ve got dozens and dozens and dozens of banks that are having to come to the well every other week.
So it could actually be a banking thing that does it, before the governments do. And the governments aren’t really in a position to subsidize their banks when they are desperately coming to central authorities to fund themselves.
If I had to say what will burst the thing, it will be banks that do it. And if banks start to go down, we know from 2008, when banks start to crumble, then the whole system falls. You can postpone the collapse of a government, but you can’t postpone the collapse of a bank if the people are lined up outside and saying, ‘Give me my money.’”
Coxe also added: “Gold’s problem, why it has maxed-out at and pulled back to $1,500, is people say, ‘Well, it had a big move, going from $250 to that ($1,900) level, but it’s still just a theoretical asset, it isn’t doing anything.’ So the moment gold comes into the system and starts doing things, I suspect that’s when we are going to get a significant up-move in gold.”
Source: kingworldnews.com
More…
Jim,
While the West is busy in trying to solve the crisis, China’s Wen goes shopping, proposes a free-trade deal with the Mercosur bloc and signs several deals (swap line, credit line for infrastructure projects…) with Latin American countries, bypassing the West and the dollar.
Regards,
CIGA Christopher
UPDATE 4-China’s Wen offers $10 billion Latin America credit line Tue Jun 26, 2012 8:50pm EDT
By Anthony Esposito
SANTIAGO, June 26 (Reuters) – Chinese Premier Wen Jiabao wrapped up a tour of resource-rich Latin America on Tuesday by offering $10 billion in credit for infrastructure projects and calling for a joint push to combat protectionism.
Wen proposed a free-trade deal with the Mercosur bloc and signed a series of investment accords during the trip to the region, a key source of agricultural and mineral commodities and a growing market for Chinese exports.
"The Chinese government … will continue to offer economic assistance to countries in the region that are interested," Wen told the U.N. regional economic body ECLAC in Chile, the world’s No. 1 copper exporter.
He said China’s Development Bank would implement a $10 billion credit program for infrastructure projects. He also said China would create a $5 billion fund for cooperation between China and Latin America and the Caribbean.
"We have to combat trade protectionism, broaden the mutual openness of our markets, optimize the trade structure and diversify cooperation in terms of customs and quality control," Wen said. He added that China aims to nearly double trade with Latin America in five years to over $400 billion.
More…
Stockton, Calif., to become largest city to declare bankruptcy CIGA Eric
The city of Detroit defaulted on their bonds in 1932. While Detroit may not have sought the protection of bankruptcy, it took them until 1963 pay off these bonds in nominal or vastly depreciated dollars. Municipalities are defaulting. This means currencies will depreciate and history will repeat. Headline: Stockton, Calif., to become largest city to declare bankruptcy
(CBS/AP) STOCKTON, Calif. – Officials in Stockton said Tuesday that mediation with creditors has failed, meaning the Central California city is set to become the largest American city ever to declare bankruptcy. City Manager Bob Deis said officials were unable to reach a deal to restructure hundreds of millions of dollars of debt under a new state law designed to help municipalities avoid bankruptcy. Monday marked the three-month deadline for negotiations. "Unfortunately we have no comprehensive set of agreements with our creditors that would eliminate the deficit and avoid insolvency," Deis said at a City Council meeting. He said, however, that the city was still negotiating with some creditors and could reach deals with as many as one-third of them. "We think Chapter 9 protection is the only choice left. If we get any agreements, those will be honored in Chapter 9," Deis said. The City Council on Tuesday voted 6-1 to adopt a special bankruptcy budget to address Stockton’s $26 million shortfall if the city files for bankruptcy, as expected, by Friday. The river port city of 290,000 in Central California has seen its property taxes and other revenues decline, while expensive investments and generous retiree benefits drained city coffers. In the past three years, officials in the city that was slammed by the collapse of the housing market dealt with $90 million in deficits through a series of drastic cuts. They eliminated one-fourth of the city’s police officers, one-third of the fire staff, and 40 percent of all other employees. They also cut wages and medical benefits.
Source: cbsnews.com
More…
People like to ask about dates. “When do you think the collapse will happen?” they ask. What are your thoughts on the Mayan calendar? How ’bout December 21st, 2012?
Most of us informed and awake folks aren’t interested in trying to predict specific dates. That’s an art best left to Nostradamus. That said, highly respected truth tellers James Turk and John Williams have both tied dates to predictions. In an interview with James Turk he told me that he thinks we will see $400 silver and $8,000 gold some time between 2013-2015. And John Williams firmly believes the die has been cast for hyperinflation in the United States, likely beginning in 2014.
Over the past 48 hours we’ve stumbled across three separate pieces of information, all predicting essentially the exact same thing regarding a fall 2012 economic collapse. Serendipity or coincidence, it’s information I want to pass on. As always, discussion is welcomed below.
The first warning is from a St. Louis based police officer who called into the Alex Jones radio show on Sunday, June 24th. The second warning comes our way via the Silver Doctors. And the third came today from unflappable Director of UBS Floor Operations Art Cashin. All three warnings are presented here for your benefit and consideration: Read More…
-Numerous end game items can be identified, all unusual, all strange, all dangerous-Operation Twist is nothing but pure QE with deception
-Bank recapitalization is coming, but until they talk about $10 trillion used, nothing will change-
-New Basel III rules might elevate gold to a Tier-1 level, possibly forcing widespread bank purchases
-Absent gold in big Western banks might actually hasten a string a bank failure events
-An army of 600 highly paid accountant experts are rummaging through a big dead Wall Street bank to check for life signs
-China is recasting large gold bars into 1-kg bars, in preparation for a new trade system (also to check for tungsten formally?)
-New money and new debt are both failing, in midst of massive slippage on desired effects
-Operation Twist is actually buying all the 30-year USTBonds ever issued
-Beware of a perverse USDollar backwardation, as paper is given a premium over contracts and electronic forms
-The Draghi LTRO funds turned out to be stillborn baby that further infected the European banks
-Bank runs are spreading slowly but in a recognizable manner in Italy, Spain, France, and the UK
-The Greek Govt debt default is the unavoidable inevitable event upcoming, to act like a lit fuse
-Debt is being widely contradicted as wealth, in all forms of assets
Gold will be the last asset standing, despite a wave of criminal activity within the Gold market
Read More @ SilverDoctors.com
[Ed. Note:
We live in a country with 310+ million people. During primetime
television viewing hours, fewer than half a million of them are watching
CNN... Say goodnight mockingbird media.]
by Dominic Patton, Deadline
Coming off its least-watched month in primetime in 20 years in May, CNN has taken another big ratings blow: The cable news network has registered to its lowest-rated quarter in primetime since 1991. For
this year’s second quarter, CNN hit a low among total viewers and the
key adults 25-54 demographic, with all primetime programs posting steep
declines. The network averaged 446,000 total viewers and
129,000 in the 25-54 demo in primetime. Compared to last year’s second
quarter, that’s down 35% and 41%, respectively. Rival Fox New Channel,
meanwhile, with 1.79 million primetime total viewers on average, was
down 1% from its 2011 second-quarter numbers. FNC lost 14% in the 25-54,
bringing in 355,000 viewers. MSNBC was down 13% in total primetime
viewers, with 689,000 on average, and down 17% in the 25-54 with
217,000. The quarter ran March 26-June 22.
Individually, CNN shows hemorrhaged viewers heavily compared with last year. Wolf Blitzer’s The Situation Room, which airs from 4-6 PM ET, was down 42% in 25-54 and 26% in total viewers. His show is expanding to three hours beginning Friday, taking over CNN’s recently cancelled John King U.S.A. At 7 PM, Erin Burnett OutFront, which debuted in October replacing a then-moving John King U.S.A., was down 45% in 25-54 from last year’s second quarter and down 33% in total viewers. Piers Morgan Tonight, which replaced Larry King Live in January 2011, was down 33% in the 25-54 and 29% in total viewers. Pulling double duty, Anderson Cooper took a double hit: Anderson Cooper 360 at 8 PM was down 23% in the 25-54 and 19% in total viewers, and its 10 PM airing was down 48% in the demo and 44% in viewers.
Read More @ Deadline.com
by Dominic Patton, Deadline
Coming off its least-watched month in primetime in 20 years in May, CNN has taken another big ratings blow: The cable news network has registered to its lowest-rated quarter in primetime since 1991. For
this year’s second quarter, CNN hit a low among total viewers and the
key adults 25-54 demographic, with all primetime programs posting steep
declines. The network averaged 446,000 total viewers and
129,000 in the 25-54 demo in primetime. Compared to last year’s second
quarter, that’s down 35% and 41%, respectively. Rival Fox New Channel,
meanwhile, with 1.79 million primetime total viewers on average, was
down 1% from its 2011 second-quarter numbers. FNC lost 14% in the 25-54,
bringing in 355,000 viewers. MSNBC was down 13% in total primetime
viewers, with 689,000 on average, and down 17% in the 25-54 with
217,000. The quarter ran March 26-June 22.Individually, CNN shows hemorrhaged viewers heavily compared with last year. Wolf Blitzer’s The Situation Room, which airs from 4-6 PM ET, was down 42% in 25-54 and 26% in total viewers. His show is expanding to three hours beginning Friday, taking over CNN’s recently cancelled John King U.S.A. At 7 PM, Erin Burnett OutFront, which debuted in October replacing a then-moving John King U.S.A., was down 45% in 25-54 from last year’s second quarter and down 33% in total viewers. Piers Morgan Tonight, which replaced Larry King Live in January 2011, was down 33% in the 25-54 and 29% in total viewers. Pulling double duty, Anderson Cooper took a double hit: Anderson Cooper 360 at 8 PM was down 23% in the 25-54 and 19% in total viewers, and its 10 PM airing was down 48% in the demo and 44% in viewers.
Read More @ Deadline.com
by Ethan A. Huff, Natural News:
The Chinese government has officially amended its patent laws to
allow drug companies to reproduce generic, low-cost versions of
expensive, patented drugs, a daring move that is sure to shake up the
pharmaceutical industry. According to Reuters Health, information posted
at China’s State Intellectual Property Office website explains that the
Chinese government will now begin issuing compulsory licenses that
bypass drug patents during times of state emergencies or other unusual
circumstances, or when doing so benefits the interests of the public.
Patent laws are the keys to the kingdom, so to speak, for Big Pharma, as they ensure a steady stream of exorbitant profits from “blockbuster” drugs for many years. In the U.S., these patents last 20 years from the time they are first filed, which results in drug companies being able to mark-up the cost of drugs as much as 569,000 percent higher than the cost of their actual raw materials.
Read More @ NaturalNews.com
The Chinese government has officially amended its patent laws to
allow drug companies to reproduce generic, low-cost versions of
expensive, patented drugs, a daring move that is sure to shake up the
pharmaceutical industry. According to Reuters Health, information posted
at China’s State Intellectual Property Office website explains that the
Chinese government will now begin issuing compulsory licenses that
bypass drug patents during times of state emergencies or other unusual
circumstances, or when doing so benefits the interests of the public.Patent laws are the keys to the kingdom, so to speak, for Big Pharma, as they ensure a steady stream of exorbitant profits from “blockbuster” drugs for many years. In the U.S., these patents last 20 years from the time they are first filed, which results in drug companies being able to mark-up the cost of drugs as much as 569,000 percent higher than the cost of their actual raw materials.
Read More @ NaturalNews.com
by Frank Holmes, MineWeb.com
Frank
Holmes believes that when push comes to shove, central banks,
especially in Europe, will forgo austerity in favor of the printing
presses, which bodes well for gold.
Over the past several months, the markets have tested investors’ conviction to gold. Since February, the price of the yellow metal has steadily stepped lower, rallying somewhat in May before falling again when Ben Bernanke disappointed by not providing the U.S. with more stimulus. Meanwhile, the dollar gained ground as global investors fled the euro.
In the ongoing eurocrisis, we won’t know the details of how Europe will clean up its debt mess for a while, but we’re pretty confident the story ends well for gold.
In one possible outcome presented by Bank of America-Merrill Lynch, austerity is “not the answer on its own” when it comes to restoring confidence in fiscal policies. Take a look at the levels of household and bank debt in the U.S. compared to Europe. Over the past few years, debt in the U.S. has decreased as the private sector has delevered.
Read More @ MineWeb.com
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Frank
Holmes believes that when push comes to shove, central banks,
especially in Europe, will forgo austerity in favor of the printing
presses, which bodes well for gold.Over the past several months, the markets have tested investors’ conviction to gold. Since February, the price of the yellow metal has steadily stepped lower, rallying somewhat in May before falling again when Ben Bernanke disappointed by not providing the U.S. with more stimulus. Meanwhile, the dollar gained ground as global investors fled the euro.
In the ongoing eurocrisis, we won’t know the details of how Europe will clean up its debt mess for a while, but we’re pretty confident the story ends well for gold.
In one possible outcome presented by Bank of America-Merrill Lynch, austerity is “not the answer on its own” when it comes to restoring confidence in fiscal policies. Take a look at the levels of household and bank debt in the U.S. compared to Europe. Over the past few years, debt in the U.S. has decreased as the private sector has delevered.
Read More @ MineWeb.com
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