Dear Friends,
Don’t lose focus on the enormity of what has taken place. It is that unimaginable size of the socialization of the losses while privatizing by monetization the ill gotten gains from pawning off fraudulent OTC derivatives. The massive size of this disaster caused entirely by OTC derivative implosions and fraudulent valuations will function to make my gold price target of $1650 that I have held for over eight years pitifully low. Alf Fields’ next leg from the recent low to $6000 has moved to probable from simply possible.
- Consider what the junior golds holding real properties will be worth.
- Consider what RGLD will be worth.
- Consider how difficult it is now for anyone to find any investment in currencies or governments.
- Consider that gold is the only true currency because there is no liability attached to it.
- Consider that the dollar represents the largest debtor entity while the euro is not.
- Consider that all government statistics are tools of spin, therefore know the truth as below
Truth in Statistics exist only at http://www.shadowstats.com
- Growth Surges/Accelerates in Broad Money Components
- Monetary Base Up 97.5% Year/Year
- Fed Actions Begin to Kick In — For Better and Worse
- U.S. Dollar Remains Key to Markets
Jim Sinclair’s Commentary
Fiscal Stimulation like bailouts is open ended. The number coming from the back channel now is $2 trillion. The combination of fiscal stimulation, bailout-itise, and quantitative easing is all the tools there are. they will have a major impact, but not in the manner desired.
As Outlook Dims, Obama Expands Recovery Plans
By JACKIE CALMES
Published: December 20, 2008
WASHINGTON — Faced with worsening forecasts for the economy, President-elect Barack Obama is expanding his economic recovery plan and will seek to create or save 3 million jobs in the next two years, up from a goal of 2.5 million jobs set just last month, several advisers to Mr. Obama said Saturday.
Even Mr. Obama’s more ambitious goal would not fully offset as many as 4 million jobs that some economists are projecting might be lost in the coming year, according to the information he received from advisers in the past week. That job loss would be double the total this year and could push the nation’s unemployment rate past 9 percent if nothing is done.
The new job target was set after a meeting last Tuesday in which Christina D. Romer, who is Mr. Obama’s choice to lead his Council of Economic Advisers, presented information about previous recessions to establish that the current downturn was likely to be “more severe than anything we’ve experienced in the past half-century,” according to an Obama official familiar with the meeting. Officials said they were working on a plan big enough to stimulate the economy but not so big to provoke major opposition in Congress.
Mr. Obama’s advisers have projected that the multifaceted economic plan would cost $675 billion to $775 billion. It would be the largest stimulus package in memory and would most likely grow as it made its way through Congress, although Mr. Obama has secured Democratic leaders’ agreement to ban spending on pork-barrel projects.
The message from Mr. Obama was that “there was not going to be any spending money for the sake of spending money,” said Lawrence H. Summers, who will be the senior economic adviser in the White House.
Jim Sinclair’s Commentary
It is coming and is extremely dangerous. If two highly excitable nuclear capable nations go at each other, it will not end until the end. When it hits the fan in either of these countries, the national lights are on, but mentally nobody is home.
Report: India may attack Pakistan
Sat, 20 Dec 2008 15:27:30 GMT
Indian military has prepared operations against targets in Pakistan and awaits the signal to go forward, a US intelligence report says.
"These most likely would take the form of unilateral precision strikes inside Pakistan-administered Kashmir, along with special forces action on the ground in Pakistan proper," Global Intelligence Service, Stratfor said in its latest report.
"Sources have indicated to Stratfor that New Delhi is going through the diplomatic motions in order to give Pakistan the opportunity to take care of the militant problem itself – but the Indians know that Islamabad has neither the will nor the capability to address their concerns," the agency said.
It explained that India knew strikes in Pakistan would not eliminate the terrorist threat, "but that would not be the aim of any such operation". It added, "Instead, India has to communicate firmly that it will no longer tolerate attacks from Pakistan-based militants – whether they are rogue or approved by the state. Failure to do so risks emboldening the militants and their enablers, as well as a domestic political backlash. The Indian government could not live with either of those outcomes."
Earlier on Friday, Indian Foreign Minister Pranab Mukherjee said that the government was keeping all options open in dealing with the situation. "If a country cannot keep the assurances that it has given, then it obliges us to consider the entire range of options that exist to protect our interests and people from this menace."
