If there's printing going on in your neighborhood
Who you gonna call?
CENTRAL BANKERS!
If a loaf of bread costs a trillion bux
Who you gonna call?
CENTRAL BANKERS!
On Bernanke's Columbus-Like Voyage To The End Of The Monetary Policy World
Whether
the optics of a jobs-related target for the Fed's QEternity are
election-based public relations, from-the-heart sentiment of an ivory
tower academic neck-deep in the reality of his failed ethos, or
well-intentioned more-of-the-same Krugmanite 'we need a bigger boat'
print til-we-stink policy; it is relatively clear that the Fed has changed course.
The longstanding problem at the Fed has been that while each
policymaker more or less agreed that guiding policy by a rule made
sense, they could not collectively agree on the rule. Morgan Stanley's
Vince Reinhart notes perfectly that at its September meeting, the Fed
effectively evaded the issue by setting QE off in a general
direction, much in the same way Columbus pointed his three ships West
and expected eventually to land in India. The history books admire the audacity of a man with a vision. Columbus sailed in the direction toward the known world’s end. Of course, he also sailed further than expected and landed on a completely different continent than planned. If the Fed has not acted consistently over the past few meetings, how will market participants infer future action?Visualizing Japan's Debt Crisis
From the largest Japanese pension fund unwinding its JGB holdings to Kyle Bass' infamous 'debt-saturation Japan Trade' and Dylan Grice's original Japan funding crisis discussion,
the nation - now facing Chinese dis-satisfaction over the recent
island-purchase - continues to stagger with its Keynesian-endgame
heading to a Koo-nesian disaster. The following info-graphic, via Informed Trades,
provides everything the savvy investor needs to know about Debt/GDP,
balance of payments, energy imports, demographics, and currency
debasement.From The Last Sane Person At The Fed: "More Easing Will Not Lead To Growth, Would Lead To Inflation"
There are two key sentences which explain why there is now only sane voice left among the FOMC's voting members (recall that back in December 2011 we
explained that more QE was only a matter of time now that the Doves
have full control). From Jeffrey Lacker: "I dissented because I opposed
additional asset purchases at this time. Further monetary
stimulus now is unlikely to result in a discernible improvement in
growth, but if it does, it’s also likely to cause an unwanted increase
in inflation.... Channeling the flow of credit to
particular economic sectors is an inappropriate role for the Federal
Reserve. As stated in the Joint Statement of the Department of Treasury
and the Federal Reserve on March 23, 2009, 'Government decisions to
influence the allocation of credit are the province of the fiscal
authorities.'" That, however, is no longer the case, as the
only real branch of 'government', accountable and electable by nobody,
going forward is that located in the Marriner Eccles building, named
ironically enough, for the last Fed president who demanded Fed
independence, and who was fired by the president precisely for that reason.
It is in this building where the central planners of the New Normal
huddle every month, and time after failed time, hope that "this time it will be different" and that wealth can finally be achieved through dilution of money.Meanwhile In Beijing: "For The Respect Of The Motherland, We Must Go To War With Japan"
Anti-US protests sweeping across the entire Muslim world (which are continuing today), besieging, attacking and burning down US embassies, are not the only thing that the central banker policy vehicle known as "the markets" have to ignore in the coming days and weeks. Cause here comes China: "Thousands besiege Japan's embassy in Beijing over Tokyo's assertion of control over disputed islands in East China Sea." And China is not happy: "For The Respect Of The Motherland, We Must Go To War With Japan." Sure enough, where would the US be if the focal point of this escalation in militant anger - the Senkaku Islands - was not merely the latest expression of Pax Americana, and America's national interests abroad.
Anti-Austerity Protests Return To Spain
In
two weeks the Greek economy will once again suffer the consequences of
European indentured servitude when it two main labor unions will grind
the system to a halt with a general strike against planned austerity
measures on September 26. Spain, however, can't wait, and is already
out in the streets (video of today's protest can be found at BBC).
From Al Jazeera: "Thousands of Spanish anti-austerity protesters have
taken to the streets of Madrid to rally against government cuts aimed
at cutting the public deficit. The demonstrators assembled in groups at
noon on Saturday along the central streets of the capital city in a
protest against spending cuts and tax rises. The developments came as
Luis de Guindos, economy minister, said that Spain's borrowing costs
still do not reflect the country's economic and fiscal adjustment,
despite their recent easing." The key word uttered that makes this whole
protest a moot point: "referendum" - silly Europeans don't seem to get
quite yet that Democracy has been dead for decades, supplanted by
kleptofascist globalization with just enough handouts for the lower and
middle classes (usually in terms of welfare promises) to keep everyone
happy. Actually make that silly Americans and Asians too.A French Rebellion Against Unelected Bureaucrats: “European Coup D’Etat And Rape Of Democracy”
09/15/2012 - 12:12
Donations will help maintain this goal
and defray the operational costs. Paypal, a leading provider of secure
online money transfers, will handle the donations. Thank you for your
contribution. 
McLEAN, Va. (AP) — An FBI sting operation promised “martyrdom
payments” of up to $1,000 a month to a Moroccan immigrant who eventually
volunteered to kill himself in a plot to bomb the U.S. Capitol,
according to court papers.
It would be naïve to assume that no country has ever violated the
Geneva Convention and it would be suicidal to think that war-time
behaviors will change anytime in the near future. But evidence
indicates, and witness testimony proves, that the US government is
intentionally targeting civilians in Pakistan, including women and
children. Is violating the Geneva Convention only morally reprehensible
when it happens on your home turf?
I'm PayPal Verified
by Anthony Wile, The Daily Bell:
Recent violence, or blowback if you will, throughout the Middle East is not surprising. Many in the mainstream media are attempting to portray the violent attacks, in particular the one against the US embassy in Benghazi, as the fallout from a recent film titled “Innocence of Muslims” that reflects poorly on Islam, to say the least.
Now, I admittedly haven’t seen the film, nor do I think it matters. To me, the casting of blame on a movie that is highly insulting to Muslims is convenient. The truth of the matter is that the forces behind American politics, and world politics for that matter, desire the chaos that is ensuing throughout the Middle East. The rise of a militant Islamic crescent will create an ongoing platform for the continued good fight of democracy against insurgent Al-Qaeda fighters – who hate us, or so we are told.
When asked about the Libyan and Egyptian Arab Springs during interviews with the Russian television network, RT, I stated that the rise of radical factions like the Muslim Brotherhood would be the result of the misguided protests being instigated by organizations like the Alliance of Youth Movements and the US State Department. But I also stated that was exactly what the West wanted. To see exactly what I had to say and how accurately that played out, take a quick look at these two videos:
Gaddafi Funds Frozen, Why New Dictators Will Be as Corrupt as the Old Ones
US Intel Agencies Involvement in Fomenting the Libyan Uprising and Why Gaddafi Will Not Survive
Read More @ TheDailyBell.com
from matlarson10:
from crabbydogtrix:
Recent violence, or blowback if you will, throughout the Middle East is not surprising. Many in the mainstream media are attempting to portray the violent attacks, in particular the one against the US embassy in Benghazi, as the fallout from a recent film titled “Innocence of Muslims” that reflects poorly on Islam, to say the least.
Now, I admittedly haven’t seen the film, nor do I think it matters. To me, the casting of blame on a movie that is highly insulting to Muslims is convenient. The truth of the matter is that the forces behind American politics, and world politics for that matter, desire the chaos that is ensuing throughout the Middle East. The rise of a militant Islamic crescent will create an ongoing platform for the continued good fight of democracy against insurgent Al-Qaeda fighters – who hate us, or so we are told.
When asked about the Libyan and Egyptian Arab Springs during interviews with the Russian television network, RT, I stated that the rise of radical factions like the Muslim Brotherhood would be the result of the misguided protests being instigated by organizations like the Alliance of Youth Movements and the US State Department. But I also stated that was exactly what the West wanted. To see exactly what I had to say and how accurately that played out, take a quick look at these two videos:
Gaddafi Funds Frozen, Why New Dictators Will Be as Corrupt as the Old Ones
US Intel Agencies Involvement in Fomenting the Libyan Uprising and Why Gaddafi Will Not Survive
Read More @ TheDailyBell.com
from matlarson10:
from crabbydogtrix:
by Chris Powell, Secretary/Treasurer, GATA, GATA:
Dear Friend of GATA and Gold:
For some reason Jeff Christian, managing director of the metals consultancy CPM Group, long has been getting under the skin of certain GATA folks. But Christian has been a hero to your secretary/treasurer ever since his testimony at the March 25, 2010, hearing of the U.S. Commodity Futures Trading Commission, where he revealed that even the so-called “physical” gold and silver markets in London are mainly just paper shorting operations:
http://www.gata.org/node/8478
When Christian testified, gold was below $1,200 and silver was at $17. But his comments about the phoniness of the “physical” market inadvertently reinforced GATA’s urgings to investors in gold and silver to get out of mere paper claims and into real metal and to remove it from the bullion market and banking system. Whereupon the metals rose steadily over the next 18 months, peaking at $1,900 and $47, respectively.
On Monday this week Christian appeared on Business News Network in Canada and predicted that the U.S. Federal Reserve would announce no substantial bond monetization this week, that the Fed’s inaction would smash commodity prices, and that CPM Group had advised its clients to go short gold and silver:
Read More @ GATA.org
Straight talk from John Williams, a man you should subscribe to. \
Fed Easing Aimed at Propping Banking System, Not Boosting Economy
- CPI and PPI Headline Inflation Highest Since June 2009
- Headline CPI Held at 0.6%, Instead of 1.0%, Due to Intervention Analysis?
- August Year-to-Year Inflation: 1.7% (CPI-U), 1.7% (CPI-W), 9.3% (SGS)
- Retail Sales Showing Consistent Pattern of Overstated Headline Activity Being Revised Lower in
Following Month
- Monthly Production and Real Earnings Turn Down
www.ShadowStats.com
Jim Sinclair’s Commentary
The real reason is that Arab Spring was no spontaneous outbreak of democracy as MSM would have you believe.
It is total bull that the video did it. Now it is a video, yesterday it was a movie without a title.
Anti-American ProtestJus Flare Beyond the Mideast
More…
Jim Sinclair’s Commentary
These guys are working hard on becoming the resident credit research department of Flat, Alaska
US Credit Rating Cut by Egan-Jones … Again Published: Friday, 14 Sep 2012 | 3:43 PM ET
CNBC.com With Reuters
Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.’s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
More…
Jim,
The NY Times is going to cut pensions for current retirees. I suspect many other large companies will follow. This would be another blow to an economy already teetering on the brink. Millions of retirees may soon go into panic mode if this spreads.
CIGA George
Dear George,
Since I started this have I not said for ten years that the retiree is the most endangered species on the face of the planet?
Nothing has changed.
Jim
NYTimes offers lump-sum pay or lower annuity option to ex-staff Sept 14 | Fri Sep 14, 2012 9:07am EDT
(Reuters) – The New York Times Co said it informed some former employees that it will offer pensioners the option to receive a one-time lump sum payment or start a lower monthly annuity now, in a bid to reduce its pension liabilities.
The company, publisher of its namesake newspaper and the Boston Globe, said the voluntary offer will be made to about 5,200 people who represent roughly 15 percent of its pension plan liabilities, which was about $1.99 billion as of Dec 25, 2011.
The company said in a regulatory filing it expects to record a non-cash settlement charge in the fourth quarter of 2012.
"This offer is another step the company is taking to reduce the size of its pension obligations and the volatility in the company’s overall financial condition," it said.
More…
Jim,
Why did you say the credit evaluators that downgraded the US today would be put in charge of credit evaluation for Flat, Alaska?
CIGA Arlen
Dear Arlen,
Having visited Flat, Alaska during one of my midlife crisis, I met the then residents Bill and Mary. It seems appropriate to what will happen to you if suggested USA T bills and bonds are instruments of confiscation.
Jim
Flat, Alaska, last reported statistics
Population in July 2007: 3.
Zip code: 99584
Estimated median household income in 2009: $0 (it was $0 in 2000)
Estimated per capita income in 2009: $0
Read more: http://www.city-data.com/city/Flat-Alaska.html#ixzz26ZSxkDr5
Dear Jim,
I just read the question from a reader about the penalties for cashing out an IRA. With the knowledge you patiently imparted in me I did so at $700 gold. Paid the taxes and penalties and at the time I wondered if I was doing the right thing. That was when $1650 seemed far, far away.
Now when we passed $1400 I was back to even, but in a much superior position.
Physical gold in my possession. At $1769 I’m way ahead and the future looks so bright I have to wear sunglasses.
I have never forgotten when you told us, "become your own central bank." Most people don’t have a clue as to what you mean but I know and I am forever indebted to you.
CIGA Z
Hi Jim,
First of all I want to thank you for all the insights and great work through the years. I know that you are very busy person and you receive thousand of e-mails, calls etc.
I do have a question regarding your current postings and the treat of government invasion of retirement accounts. It is a very real and dangerous event that I have kept in mind for a long time now. It even happened recently in Hungary and Poland if I am not mistaken with government "guarantees" of course. They took over personal retirement accounts to fill the holes in the budgets.
I am almost 100% sure that this will happen again and it might blow people’s minds.
I do have an IRA myself which was opened a long time ago and I stopped funding it for the past 3 years, but tell me what to do with it. Cashing the thing will cost 40% + 10% penalty, because I am not over 59 (Roth IRA). You have advised us to pull securities from the street using DRS or certificates, but will this save them from government intervention or they will be at risk even then? Is a self directed retirement account safe from government authorities or not (self-directed accounts invested in gold/gold shares). Please advise what will be your best strategy for this type of funds having all that in mind.
CIGA Cris
Cris,
The government in the West will consider and probably save you from yourself by taking over your retirement account when and only when the US Treasury market breaks badly. It will be in every headline everywhere when the US Treasury market collapses unexpectedly, probably in 2015 to 2017. If you read a headline, "Unexpected the US treasury market has come under extreme selling pressure," close your retirement account immediately.
Jim
Jim,
U have to add some higher gold targets on your animation now
Rob
Rob,
See the illustration below. That was done in 2009.
Regards,
Jim
Jim,
Thanks, as always, for your advice. Concerning the above would you further recommend cashing these in or just not adding to them? I am sure that there are other CIGAs with the same question.
My wife and I are both in our 70′s and each have Roth IRAs with 250K+ invested in precious metal stocks. The primary purpose and intent was to leave them to our 2 children for a lifetime annuity, unless we need them for medical reasons.
Regards,
CIGA Phil
Phil,
Live your life to the fullest, and let your children create their own wealth. Whatever is left from your full and happy life is theirs.
For now do not contribute any more funds. If and when the bond market starts to fail under lows, dump those retirement accounts.
Jim
Jim
Would u please tell me how the government could take over my 401k plan and make me invest in what they want, like government bonds? I believe this is what you were indicating in your latest blog that I just read.
Thank you,
CIGA Herb
Dear Herb,
By presidential edict like the almost 1000 edict (Presidential orders) that have skirted the legislative process in the past 4 years. It will be MOPEd as saving you.
Jim
Dear CIGAs,
To all the readers of JSMineset and Tanzanian Royalty Exploration websites:
I am writing to give thanks to the most brilliant, seasoned and clear mind in international economics and finance, Jim Sinclair.
Events of the past weeks in Europe, the US, and many other parts of the world have conclusively brought to fruition the predictions of Jim Sinclair in an unmistakably clear manner for the entire investing universe to see.
Jim’s repeated, steadfast and consistent statements that QE to infinity would be the result of government behaviors have been clearly verified and demonstrated by the action of the US Federal Reserve yesterday.
Taken alone, the $40 billion per month QE is stunning. We remember this is being done while maintaining all previous programs, operation twist and etc. When taken with consideration of the context provided by the recent actions in Europe, China, Japan, UK and many other countries to do types of QE, it provides an irrefutable example of how QE to infinity is playing out.
For all of your readers may I gratefully say many thanks for your wisdom and guidance, Jim.
Monty Guild
My Dear Extended Family,
There is one more serious problem with all retirement accounts above and beyond the Sentinel Ruling and the integrity of the custodian.
If a systemic failure and lower dollar causes an unwanted increase in interest rates in light of the Fed as the major consumer of treasury paper in the last 18 months, how would the US government fund itself? You can be certain that China and the Middle East are not coming to the rescue.
One way would be to liquidate retirement accounts ($2 trillion USD) and put treasury paper into them to save the poor worker and coming retirees from loss as MSM and MOPE would say.
Look around the world at governments either eyeing retirement programs or invading them. You will find it is already happening.
Please, at a minimum, stop creating and funding them.
Regards,
Jim
Donations will help maintain this goal
and defray the operational costs. Paypal, a leading provider of secure
online money transfers, will handle the donations. Thank you for your
contribution.
Dear Friend of GATA and Gold:
For some reason Jeff Christian, managing director of the metals consultancy CPM Group, long has been getting under the skin of certain GATA folks. But Christian has been a hero to your secretary/treasurer ever since his testimony at the March 25, 2010, hearing of the U.S. Commodity Futures Trading Commission, where he revealed that even the so-called “physical” gold and silver markets in London are mainly just paper shorting operations:
http://www.gata.org/node/8478
When Christian testified, gold was below $1,200 and silver was at $17. But his comments about the phoniness of the “physical” market inadvertently reinforced GATA’s urgings to investors in gold and silver to get out of mere paper claims and into real metal and to remove it from the bullion market and banking system. Whereupon the metals rose steadily over the next 18 months, peaking at $1,900 and $47, respectively.
On Monday this week Christian appeared on Business News Network in Canada and predicted that the U.S. Federal Reserve would announce no substantial bond monetization this week, that the Fed’s inaction would smash commodity prices, and that CPM Group had advised its clients to go short gold and silver:
Read More @ GATA.org
from KingWorldNews:
The KWN Weekly Metals Wrap – We have added new segments to the KWN
Weekly Metals Wrap covering gold, silver, trading and a plethora of
other factors affecting the precious metals markets. I am giving King
World News listeners globally access to what has long been my secret
weapons in researching where gold and silver are headed directionally
along with the COT Report. We Cover the Commitment of Traders Report in
detail as well as a number of other factors which can influence the gold
and silver market price action.
Bill Haynes and Dan Norcini AUDIO INTERVIEW @ KingWorldNews.com
Jim Sinclair’s Commentary
The KWN Weekly Metals Wrap – We have added new segments to the KWN
Weekly Metals Wrap covering gold, silver, trading and a plethora of
other factors affecting the precious metals markets. I am giving King
World News listeners globally access to what has long been my secret
weapons in researching where gold and silver are headed directionally
along with the COT Report. We Cover the Commitment of Traders Report in
detail as well as a number of other factors which can influence the gold
and silver market price action.Bill Haynes and Dan Norcini AUDIO INTERVIEW @ KingWorldNews.com
by David Galland, Casey Research:
After three full days of fairly intense Summiteering, I have reams of notes I could share with you, given sufficient time. As I don’t have that time, I’ll try to summarize just a few of the key points.
In no particular order…
After three full days of fairly intense Summiteering, I have reams of notes I could share with you, given sufficient time. As I don’t have that time, I’ll try to summarize just a few of the key points.
In no particular order…
- The data confirms that the global economy remains in deep trouble. Not
just “a little”‘ trouble, or “some” trouble – but trouble of the sort
that comes along only every few generations. You know, WWII-level
trouble – the sort of stories you’ll someday regale your
great-grandchildren with.
Of course, this rather dire view comes as no surprise to most dear readers. It should come as no surprise to anyone, at least anyone paying even the slightest attention to the steady flow of bad economic news.
In Carlsbad, we heard any number of perspectives on just how long this crisis might last (another ten years is well within the range of possibilities) or how bad things might get (Doug-Casey bad).
Read More @ CaseyResearch.com
Straight talk from John Williams, a man you should subscribe to. \
Fed Easing Aimed at Propping Banking System, Not Boosting Economy
- CPI and PPI Headline Inflation Highest Since June 2009
- Headline CPI Held at 0.6%, Instead of 1.0%, Due to Intervention Analysis?
- August Year-to-Year Inflation: 1.7% (CPI-U), 1.7% (CPI-W), 9.3% (SGS)
- Retail Sales Showing Consistent Pattern of Overstated Headline Activity Being Revised Lower in
Following Month
- Monthly Production and Real Earnings Turn Down
www.ShadowStats.com
Jim Sinclair’s Commentary
The real reason is that Arab Spring was no spontaneous outbreak of democracy as MSM would have you believe.
It is total bull that the video did it. Now it is a video, yesterday it was a movie without a title.
Anti-American ProtestJus Flare Beyond the Mideast
More…
Jim Sinclair’s Commentary
These guys are working hard on becoming the resident credit research department of Flat, Alaska
US Credit Rating Cut by Egan-Jones … Again Published: Friday, 14 Sep 2012 | 3:43 PM ET
CNBC.com With Reuters
Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.’s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
More…
Jim,
The NY Times is going to cut pensions for current retirees. I suspect many other large companies will follow. This would be another blow to an economy already teetering on the brink. Millions of retirees may soon go into panic mode if this spreads.
CIGA George
Dear George,
Since I started this have I not said for ten years that the retiree is the most endangered species on the face of the planet?
Nothing has changed.
Jim
NYTimes offers lump-sum pay or lower annuity option to ex-staff Sept 14 | Fri Sep 14, 2012 9:07am EDT
(Reuters) – The New York Times Co said it informed some former employees that it will offer pensioners the option to receive a one-time lump sum payment or start a lower monthly annuity now, in a bid to reduce its pension liabilities.
The company, publisher of its namesake newspaper and the Boston Globe, said the voluntary offer will be made to about 5,200 people who represent roughly 15 percent of its pension plan liabilities, which was about $1.99 billion as of Dec 25, 2011.
The company said in a regulatory filing it expects to record a non-cash settlement charge in the fourth quarter of 2012.
"This offer is another step the company is taking to reduce the size of its pension obligations and the volatility in the company’s overall financial condition," it said.
More…
Jim,
Why did you say the credit evaluators that downgraded the US today would be put in charge of credit evaluation for Flat, Alaska?
CIGA Arlen
Dear Arlen,
Having visited Flat, Alaska during one of my midlife crisis, I met the then residents Bill and Mary. It seems appropriate to what will happen to you if suggested USA T bills and bonds are instruments of confiscation.
Jim
Flat, Alaska, last reported statistics
Population in July 2007: 3.
| Males: 1 |  (50.0%) |
| Females: 2 |  (50.0%) |
| Median resident age: |  33.0 years |
| Alaska median age: |  32.4 years |
Estimated median household income in 2009: $0 (it was $0 in 2000)
| Flat: | $0 |
| Alaska: | $66,953 |
Read more: http://www.city-data.com/city/Flat-Alaska.html#ixzz26ZSxkDr5
Dear Jim,
I just read the question from a reader about the penalties for cashing out an IRA. With the knowledge you patiently imparted in me I did so at $700 gold. Paid the taxes and penalties and at the time I wondered if I was doing the right thing. That was when $1650 seemed far, far away.
Now when we passed $1400 I was back to even, but in a much superior position.
Physical gold in my possession. At $1769 I’m way ahead and the future looks so bright I have to wear sunglasses.
I have never forgotten when you told us, "become your own central bank." Most people don’t have a clue as to what you mean but I know and I am forever indebted to you.
CIGA Z
Hi Jim,
First of all I want to thank you for all the insights and great work through the years. I know that you are very busy person and you receive thousand of e-mails, calls etc.
I do have a question regarding your current postings and the treat of government invasion of retirement accounts. It is a very real and dangerous event that I have kept in mind for a long time now. It even happened recently in Hungary and Poland if I am not mistaken with government "guarantees" of course. They took over personal retirement accounts to fill the holes in the budgets.
I am almost 100% sure that this will happen again and it might blow people’s minds.
I do have an IRA myself which was opened a long time ago and I stopped funding it for the past 3 years, but tell me what to do with it. Cashing the thing will cost 40% + 10% penalty, because I am not over 59 (Roth IRA). You have advised us to pull securities from the street using DRS or certificates, but will this save them from government intervention or they will be at risk even then? Is a self directed retirement account safe from government authorities or not (self-directed accounts invested in gold/gold shares). Please advise what will be your best strategy for this type of funds having all that in mind.
CIGA Cris
Cris,
The government in the West will consider and probably save you from yourself by taking over your retirement account when and only when the US Treasury market breaks badly. It will be in every headline everywhere when the US Treasury market collapses unexpectedly, probably in 2015 to 2017. If you read a headline, "Unexpected the US treasury market has come under extreme selling pressure," close your retirement account immediately.
Jim
Jim,
U have to add some higher gold targets on your animation now
Rob
Rob,
See the illustration below. That was done in 2009.
Regards,
Jim
Jim,
Thanks, as always, for your advice. Concerning the above would you further recommend cashing these in or just not adding to them? I am sure that there are other CIGAs with the same question.
My wife and I are both in our 70′s and each have Roth IRAs with 250K+ invested in precious metal stocks. The primary purpose and intent was to leave them to our 2 children for a lifetime annuity, unless we need them for medical reasons.
Regards,
CIGA Phil
Phil,
Live your life to the fullest, and let your children create their own wealth. Whatever is left from your full and happy life is theirs.
For now do not contribute any more funds. If and when the bond market starts to fail under lows, dump those retirement accounts.
Jim
Jim
Would u please tell me how the government could take over my 401k plan and make me invest in what they want, like government bonds? I believe this is what you were indicating in your latest blog that I just read.
Thank you,
CIGA Herb
Dear Herb,
By presidential edict like the almost 1000 edict (Presidential orders) that have skirted the legislative process in the past 4 years. It will be MOPEd as saving you.
Jim
Dear CIGAs,
To all the readers of JSMineset and Tanzanian Royalty Exploration websites:
I am writing to give thanks to the most brilliant, seasoned and clear mind in international economics and finance, Jim Sinclair.
Events of the past weeks in Europe, the US, and many other parts of the world have conclusively brought to fruition the predictions of Jim Sinclair in an unmistakably clear manner for the entire investing universe to see.
Jim’s repeated, steadfast and consistent statements that QE to infinity would be the result of government behaviors have been clearly verified and demonstrated by the action of the US Federal Reserve yesterday.
Taken alone, the $40 billion per month QE is stunning. We remember this is being done while maintaining all previous programs, operation twist and etc. When taken with consideration of the context provided by the recent actions in Europe, China, Japan, UK and many other countries to do types of QE, it provides an irrefutable example of how QE to infinity is playing out.
For all of your readers may I gratefully say many thanks for your wisdom and guidance, Jim.
Monty Guild
My Dear Extended Family,
There is one more serious problem with all retirement accounts above and beyond the Sentinel Ruling and the integrity of the custodian.
If a systemic failure and lower dollar causes an unwanted increase in interest rates in light of the Fed as the major consumer of treasury paper in the last 18 months, how would the US government fund itself? You can be certain that China and the Middle East are not coming to the rescue.
One way would be to liquidate retirement accounts ($2 trillion USD) and put treasury paper into them to save the poor worker and coming retirees from loss as MSM and MOPE would say.
Look around the world at governments either eyeing retirement programs or invading them. You will find it is already happening.
Please, at a minimum, stop creating and funding them.
Regards,
Jim
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