"Trade-Off": A Study In Global Systemic Collapse
And now some bedtime reading for everyone who consistently has a nagging feeling that at any second the world is one short flap of a butterfly's wings away from complete systemic disintegration: according to David Korowicz of FEASTA, and his most recent paper: 'Trade-Off: Financial System Supply-Chain Cross-Contagion: a study in global systemic collapse." that just may be the case. Think of the attached 78-page paper as Nassim Taleb meets Edward Lorenz meets Malcom Gladwell meets Arthur Tansley meets Herman Muller meets Werner Heisenberg meets Hyman Minsky meets William Butler Yeats, and the resultant group spends all night drinking absinthe and smoking opium, while engaging in illegal debauchery in the 5th sub-basement of the Moulin Rouge circa 1890.  To wit: "Something sets off an interrelated Eurozone crisis and banking crisis, a Spanish default say, which spreads panic and fear across other vulnerable Eurozone countries. This sets off a Minsky moment when overleveraged speculators in the banking and shadow banking system are forced to unwind positions into a one-sided (sellers only) market. The financial system contagion passes a tipping point where governments and central banks start to lose control and panic drives a (positive feedback) deepening and widening of the impact globally. In our tropic model of the globalised economy, the banking and monetary system keystone hub comes out of its equilibrium range, crosses a tipping point, and is driven away by positive feedbacks to some new state.... it is very clear that we have learned almost nothing general about risk management as a societal practice arising from the financial crisis. We have merely adopted a new consensus, with a questionable acknowledgement that we will not let this type of crisis happen again. However, the argument in this following report is that we are facing growing real-time, severe, civilisation transforming risks without any risk management."

James Howard Kunstler: It’s Too Late for Solutions

from ChrisMartensondotcom :

Author and social critic James Howard Kunstler has been one of the earliest, most direct, and most articulate voices to warn of the consequences — economic and otherwise — of modern society’s profligate wasting of the resources that underlie its growth.

In his new book Too Much Magic, Jim attacks the wishful thinking dominant today that with a little more growth, a little more energy, a little more technology — a little more magic — we’ll somehow sail past our current tribulations without having to change our behavior.
Such self-delusion is particularly dangerous because it is preventing us from taking intelligent, constructive action at the national level when the clock is fast ticking out of our favor. In fact, Jim claims we are past the state where solutions are possible – instead, we need a response plan to help us best brace for the impact of the coming consequences. And we need it fast.

Monsanto weeds have taken root throughout academia

by Jonathan Benson, Natural News:
id implementing safety measures. That means the parliamentary report noted that the Japanese government itself lacked a commitment to protect the public.The highly respected publishing group Oxford University Press (OUP), which is considered to be the largest university press in the world, appears to be actively diluting its rigorous publishing standards at the behest of corporate interests. A recent report by Frances Moore Lappe over at AlterNet explains how one OUP published book in particular that promotes the use of genetically-modified (GM) crops lacks even basic citations — and OUP apparently sees absolutely nothing wrong with this.
Food Politics: What Everyone Needs to Know by Robert Paarlberg claims to take an honest look at major issues of relevance concerning food production in the modern world, including matters of food shortages and safety, agricultural technology, factory farming, and GMOs. But when it comes right down to it, Paarlberg’s book lacks even basic references to any sort of concrete evidence whereby readers can fact check and verify his many claims.
Read More @ NaturalNews.com

Smooth Criminals & Bad Arguments

by David Galland, Casey Research:

Like you, I read a lot.
And while I regularly come across commentary that strikes me as little more than mindless drivel, recently I have begun to notice something far more concerning than public displays of ignorance.
I refer to deliberate attempts to pollute the public mindset using specious arguments that appear carefully construed to dupe the dupable. In a rare attempt at brevity, I will get straight to a couple of examples to make my point.
Draft the Kids!: This week’s winner of the most ill-conceived and downright aggravating mainstream media article is, hands down, an essay titled “Let’s Draft Our Kids” that appeared in the New York Times. This fascist manifesto was penned during what must have been a psychotic break by one Thomas Ricks who fashions himself as something of an authority on martial matters.
To get the full sour flavor of the article, you should read it yourself, but to give you a taste of what Mr. Ricks, if left to his own devices, would subject his children to – that is if he were actually able to find someone to mate with him, about which I am skeptical – here’s the CliffsNotes.

• Every child, upon graduating high school, will be taken from their family and made a slave in the service of the military for a minimum of 18 months. Read More @ CaseyResearch.com
  

Money Is Never Neutral

by Detlev Schlichter, Whiskey and Gunpowder:
Every monetary stimulus creates winners and losers. And it should be no surprise that monetary policy would finally end in a cul-de-sac. It only surprises those who share the mainstream’s simplistic view of monetary stimulus. Phrases such as “the ECB is attempting to unlock the flow of credit in the Eurozone”, mask the complexity of the true effects of money creation and interest rate manipulation. They make ongoing monetary stimulus look unduly harmless and straightforwardly positive. Who could object to unlocking credit, to liquefying markets or stimulating activity?
One of the major contributions of Ludwig von Mises’s monetary theory was his proof of the categorical non-neutrality of money. He demonstrated “that changes in purchasing power of money cause prices of different commodities and services to change neither simultaneously nor evenly, and that it is incorrect to maintain that changes in the quantity of money, yield simultaneous and proportional changes in the ‘level’ of prices.” (Ludwig von Mises, Memoirs, page 47).
A monetary stimulus never affects GDP and inflation directly and exclusively, these two statistical aggregates to which the mainstream assigns overwhelming importance.
Read More @ WhiskeyAndGunpowder.com

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End the Fed and the LIBOR Scandal w/ LaRouchePAC’s Anton Chaitkin

[Ed. Note: We are pleased to be able to bring attention to the work of the LaRouche organization and the real solutions to the worldwide economic crisis they champion. Here, Freedom Link Radio picks up the torch and gives LaRouche's Anton Chaitkin the floor to share more candid truth about the criminality of the Western banking system.]
from FreedomlinkRadio:

LaRouchePAC’s Chief Historian Anton Chaitkin talks about ending the Federal Reserve, getting rid of Obama, and the way forward. He also discusses the LIBOR interest rate fixing scandal that is putting the global economy at risk and causing the inner circles of England to ask the United States to consider re-instituting Glass-Steegal.

The Fed’s Next Move

by Michael Pento, 24hGold.com:
Spanish and Italian bond yields have now risen back up to the level they were before the EU Summit. We also learned recently that U.S. job growth remains anemic, producing just 80k net new jobs in June. The global manufacturing index dropped to 48.9, for the first time since 2009. And emerging market economies have seen their growth rates tumble, as the European economy sinks further into recession.
It isn’t much of a surprise to learn that central banks in China, Britain, Europe and America have indicated that more money printing is just around the corner.
In fact, we have recently witnessed the People’s Bank of China cut their one-year lending rate by 31 bps to 6 percent. The European Central Bank cut rates 25 bps, to .75 percent and dropped their deposit rate to 0 percent. And the Bank of England restarted their bond purchase program just two months after ending the previous program, which indicates the central bank will buy another 50 billion pounds of government debt.
Read More @ 24hGold.com

Jim’s Mailbox

July 14, 2012, at 6:09 pm
by Jim Sinclair

Dear Jim,

Max Keiser says hang the Bankers.
I remember 5 years ago a story of a Chinese banker who was executed was posted on JSMineset. We were told soon that it would happen in the West, not just Asia

CIGA Luis Ahlborn Sequeira

Dear Luis,

Minus the FASB cover of worthless OTC derivative paper as worth-full, the US banks are bankrupt.

Regards,
Jim

Dear Jim,

You may be interested in this:
All the best,
Lars Schall.

Libor Rigging: The Tip of the Iceberg July 14th, 2012
The rigging of the LIBOR interest rate report, Rob Kirby of Kirby Analytics in Toronto writes, was only a small part of the greater scheme of controlling interest rates and the price of gold and supporting the U.S. dollar with vast derivative positions on the books of JPMorganChase. Moreover, Kirby talks about this nexus as a guest of the latest “Keiser Report"
Link to full article…

In The News Today

July 14, 2012, at 2:19 pm
by Jim Sinclair

Jim Sinclair’s Commentary

You would not need even an ex cop to figure it out here.

Iceland Has Hired An Ex-Cop To Hunt Down The Bankers That Wrecked Its Economy Rob Wile | Jul. 12, 2012, 2:07 PM
If you were involved in Icelandic high finance in the runup to the recession, you might want to start watching your back.
That’s because the government has appointed a white collar crime bounty hunter who wants to haul your behind in (alive, to be sure).
LeMonde reporter Charlotte Chabas has a profile of Ólafur Þór Hauksson, a former local police lieutenant whom the Iceland government appointed to track down individuals likely to have helped sink the country’s banking sector during the credit crunch.
Hauksson’s job description, according to PressEurop’s translation of the piece:
"On one hand, we have to investigate all suspicion of fraud and offences committed before 2009, on the other hand, we bring the lawsuits against the suspects to court ourselves," Hauksson explains. This is a ‘totally new’ method which allows the investigators to "follow the case" and the judicial system to "know the cases like the back of their hand". This is indispensable in order "to compete with the well-prepared defence attorneys".
Hauksson oversees a posse of 100 researchers to help track down outlaws. He’s netted some major convictions since starting in 2009, including the former chief of staff of the country’s finance minister on insider trading charges. Many others await their day in court, Chabas writes.
More…


Jim Sinclair’s Commentary

The Rig is Out, which is the basis for the Rig is Up.

Wall Street sleaze keeps growing Robert Reich
Updated 12:07 a.m., Saturday, July 14, 2012
Just when you thought Wall Street couldn’t sink any lower – when its excesses are still causing hardship to millions of Americans and its myriad abuses of public trust have already spread a miasma of cynicism over the entire economic system – an even deeper level of public-be-damned greed and corruption is revealed.
Sit down, and hold on to your chair.
Consider the most basic services banks provide you: You put your savings in a bank to hold in trust, and the bank agrees to pay you interest on it. Or, you borrow money from the bank and agree to pay the bank interest on the loan.
We trust that the banking system is setting interest rates based on its best guess about the future worth of the money. And we assume that guess is based, in turn, on the cumulative market predictions of lenders and borrowers all over the world (including central banks) about the future supply and demand for the dough.
But suppose our assumption is wrong. Suppose the bankers are manipulating the interest rate so they can place bets with the money you lend or repay them – bets that will pay off big for them because they have inside information on what the market is really predicting, which they’re not sharing with you.
More…



Jim Sinclair’s Commentary

What we face in the markets is nothing other than organized crime.

Jim Sinclair’s Commentary

How some regulators recognize the advances in gold as an asset.

FDIC to Classify Gold as a 0% Risk-Weighted Asset? By James Anderson
July 13, 2012
On June 18 the Federal Deposit Insurance Corp. proposed rule changes to categorize gold as a Zero Percent Risk-Weighted, Tier 1 Asset.
This is significantly bullish for gold in the long term as this potential systemic change could drive gold demand and gold prices much higher.

In light of the global financial downturn, cash and bonds have begun to lose their luster as global financial regulators have begun to recognize the implied risks behind paper assets.
In a world characterized by central bank printing binges and rampant government spending, banking regulators are quietly being forced to recognize one of the only remaining counter-party risk free assets:  Gold.
More…




Jim Sinclair’s Commentary

See, we do not need the Iceland ex cop. The doers are in plain sight.

In PFG Scandal, JPMorgan Chase Had Surprising Role: It Held Customer Accounts Posted: 07/12/2012 1:11 pm Updated: 07/12/2012 2:59 pm
The investigation into the collapse of Iowa brokerage firm Peregrine Financial Group is notable for one name that has not yet turned up: JPMorgan Chase.
JPMorgan, the country’s biggest bank, held customer accounts for Peregrine, doing business as PFGBest. But in alleging that Peregrine took customer money, the National Futures Association and Commodity Futures Trading Commission have claimed that customer money is missing not from a JPMorgan account, but from a U.S. Bank account.
That’s news to some Peregrine clients.
"All of my clients thought the money was at JPMorgan," said Mark Sackoor, managing director at Abaco Futures in Boynton Beach, Fla. Sackoor was an "introducing broker" for PFG, connecting individual clients with the firm, which held their money.
Brokerage firms like PFG are required under federal regulations to disclose the name of the bank that holds segregated customer accounts, and JPMorgan was the only bank named in that capacity on the PFG Web site. If you were a client who wanted to send money to PFG, its Web site directed you — and still does — to wire the money to a JPMorgan account called the "PFG Inc. Customer Segregated Funds Account."
More…

 

Western World Finance Is In Deep Trouble

July 13, 2012, at 9:20 pm
by Jim Sinclair

My Dear Friends,

I will expand on this over the summer, but as an introduction:

1. Economics are not weekly and monthly statistics. It is comprised of motion and change that determines the trend.

2. The effect of economic actions is not a static amount, for example0 QE in some determined period of time, but rather an inescapable cumulative impact due to the rate of change. Each event of stimulation requires greater effort than the previous.

3. Economic activity is either increasing at an increasing rate or it is decelerating and an increasing rate. There are no Plateaus of Prosperity or Goldilocks Economics other than in the minds of spin doctors.

4. Debt has come home to be confronted here and now. There is no normal business means of accomplishing this.

The conclusion to be outlined in many ways over the summer is clearly the Western world finance is in deep trouble. QE to infinity is the only political tool that can kick the can. Gold will trade at and above $3500 regardless of all the previous attempts to manipulate it.

Cash market buyers will prevent all attempts to color gold otherwise.

Respectfully,
Jim

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