Dear CIGAs,

This shall be.

Jim Sinclair:
Gold will appreciate to $1224 and then to $1650. All this will be history by January 14th 2011

Alf Fields: 
Major ONE up from $256 to $1,015 (actually 4 times the $255 low); 
Major TWO down from $1015 to $699, say $700 (a decline of 31%); 
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low); 
Major FOUR down from $3,500 to $2,500 (a 29% decline); 
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

Martin Armstrong:
A major high is possible as early as 2010-2011 with the potential for an exponential rally into 2015 if there is any kind of a low going into 2011.

 

Jim Sinclair’s Commentary

The only protection the predatory hedgies have is to hide.

They have killed more people than the Battle of Antietam in the USA Civil War.

It time legs plus a few other things will be broken as their identities becomes public knowledge.

Problems with securitization
February 10, 2009, 6:01 PM

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More… ^[2]

 

Jim Sinclair’s Commentary

It takes BALLS to advise Gordy, the gold buffoon.

Recession ‘worst for 100 years’

The current global recession is "the most serious for over 100 years", cabinet minister Ed Balls has said.

Mr Balls, a former economic adviser to Gordon Brown, said it was "more extreme and more serious than that of the 1930s", the Yorkshire Post reported.

He told a Labour conference that these were "seismic events that are going to change the political landscape".

Shadow Treasury minister Phillip Hammond said the remarks were "staggering and very worrying".

Mr Balls, the schools secretary, made the comments at Labour’s Yorkshire conference at the weekend, the newspaper reported.

The BBC’s political editor Nick Robinson said Mr Balls and Downing Street have attempted to play down the significance of his remarks, insisting he had been pointing out the unique nature of the global financial crisis and was not predicting that the impact on ordinary people would be worse than that experienced during the Great Depression of the 1930s.

More… ^[3]

 

Jim Sinclair’s Commentary

I am no fan of this man with the exception of his methods of interrogation. I would love to have him jumping up and down over the lack of and lack of enforcement of the uptick rule in shorting equities.

A Proposal to Shore Up Banks With Pension Funds
By MARY WILLIAMS WALSH
Published: February 9, 2009

Financial institutions in the United States probably need hundreds of billions of dollars in additional assistance, and one congressman wants to harness state and local pension funds to help them.

“Some of us are getting tired of writing checks with public money” and seeing no results, said Representative Gary L. Ackerman, Democrat of New York.

Rather than rely more heavily on the Treasury, which has already put $350 billion in the nation’s banks, Representative Gary L. Ackerman sees an opportunity in the trillions of dollars in public pension funds. Most of the funds suffered giant losses last year in the market turmoil. But they do not need all of their assets immediately, because their time horizon for paying benefits is decades long.

Mr. Ackerman, Democrat of New York, is sponsoring legislation that would allow public pension funds to pool some of their money and use it to create a sole-purpose entity that would buy $50 billion to $250 billion worth of preferred stock in America’s banks. That would strengthen the banks’ balance sheets and, Mr. Ackerman hopes, get them lending again.

“Some of us are getting tired of writing checks with public money” and seeing no results, Mr. Ackerman said. He said pension fund officials who had heard about the measure so far were eager to participate.

More… ^[4]

 

Jim Sinclair’s Commentary

Dear Moody’s, Standard and Poors,

Assuming that your rating of US Treasury instruments is correct, why would China be concerned?

Either you are right or the Chinese are right. Which is it?

China Needs U.S. Guarantees for Treasuries, Yu Says (Update2)
By Belinda Cao and Judy Chen

Feb. 11 (Bloomberg) — China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.

The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt.

Benchmark 10-year Treasury yields climbed above 3 percent this week on speculation the government will increase borrowing as President Barack Obama pushes his $838 billion stimulus package through Congress. Premier Wen Jiabao said last month his government’s strategy for investing would focus on safeguarding the value of China’s $1.95 trillion foreign reserves.

China may voice its concerns over U.S. government finances and the potential for a weaker dollar when Secretary of State Hillary Clinton visits China on Feb. 20, according to He Zhicheng, an economist at Agricultural Bank of China, the nation’s third-largest lender by assets. A People’s Bank of China official, who didn’t wish to be identified, declined to comment on the telephone.

Clinton Talks

“In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.”

More… ^[5]

 

Jim Sinclair’s Commentary

When will the West learn. You cannot buy allies in Pakistan.

Pakistan Wants More From US ^[6]
Washington Post – United States
By Karen DeYoung Inside the warm welcome and promises of a "new beginning" that Pakistan extended US special envoy Richard C. Holbrooke yesterday was a …
See all stories on this topic ^[7]

Pakistan’s ISI problem [8] Boston Globe – United States PAKISTAN has a terrorist problem, as many of the country’s leaders acknowledge. But Pakistan also has an ISI problem – the country’s powerful Inter-Services … See all stories on this topic [9]

Bomb injures six in NW Pakistan: police [10] AFP PESHAWAR, Pakistan (AFP) — At least five people were killed and 10 others wounded Monday in a bomb blast in a troubled town in northwest Pakistan near the… See all stories on this topic [11]

News Analysis: New US-Pakistan partnership hinges on anti-terrorism [12] Xinhua – China 11 (Xinhua) — The special US envoy Richard Holbrooke is visiting Pakistan with a heavy agenda which mainly focuses on the war against terrorism in the … See all stories on this topic [13]

US watchful of Pakistan’s assurances on AQ Khan [14] Hindu – Chennai,India Washington (IANS): Pakistan has assured the US that released Pakistani scientist AQ Khan, accused of selling nuclear secrets in the black market, … See all stories on this topic [15]

Human rights committee calls Miliband and Smith for questioning … [16] guardian.co.uk – UK Binyam Mohamed was detained in Pakistan and questioned by MI5 officers before being "rendered" by the United States to Morocco, where his lawyers claim he … See all stories on this topic [17]