Dear CIGAs,

I would honestly suggest with today’s action this young man make his total $36,000,000 by the time he is 11.

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Jim Sinclair’s Commentary

Mugabe is the Chairman of the Federal Reserve.

What a horrible mistake this is! Now you can count on Confetti Money.

Now you know how truly horrible the OTC derivative meltdown is. What a mess the main manufacturer and distributor of this toxic paper, the USA, is in

There is no practical solution to this problem so ignore the ignoramuses on the Comex. Use the Comex to buy every time the ignoramuses raid and sell the short squeeze if you must trade.

Fed to Buy $1 Trillion in Securities to Aid Economy
By EDMUND L. ANDREWS
Published: March 18, 2009

WASHINGTON — Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.

“Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending,” the Fed said, adding that it would “employ all available tools to promote economic recovery and to preserve price stability.”

As expected, the Fed kept its benchmark interest rate at virtually zero. But in a surprise, it dramatically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike.

Indeed, the immediate effect on the bond markets was striking, with prices rising and yields dropping sharply on the news. The yield on the 30-year Treasury bond, about 3.75 percent before the announcement, fell quickly to 3.4 percent and remained volatile. At the same time, the dollar plunged about 3 percent against other major currencies.

Stocks moved higher on the Fed action. The Dow Jones industrial average was down about 50 points before the 2:15 p.m. announcement, but within an hour it was up 120 points for the day.

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Jim Sinclair’s Commentary

This is right out of the Great Depression 101 text book.

We are embarking on the 1930s Civilian Conservation Corp of a modestly different mode.

This along with the central bank monetizing your own debt (Zimbabwe 2005-2009), the reinstitution of the failed SDR and the political AIG bonus straw man means that this thing is so out of control our leadership is flailing wildly in the wind.

We are in huge trouble as a nation.

Alf you are so right!

House Readies Passage of Volunteerism Bill Critics Call Pricey, Forced Service
The legislation will expand the 1993 AmeriCorps program to match the renewed interest in national service since President Obama’s election, which backers say is crucial in tough economic times.
By Kelley Beaucar Vlahos
FOXNews.com
Wednesday, March 18, 2009

WASHINGTON — The House of Representatives is expected to pass a measure Wednesday that supporters are calling the most sweeping reform of nationally-backed volunteer programs since AmeriCorps. But some opponents are strongly criticizing the legislation, calling it expensive indoctrination and forced advocacy.

The Generations Invigorating Volunteerism and Education Act, known as the GIVE Act — sponsored by Reps. Carolyn McCarthy, D-N.Y, and George Miller, D-Calif. — was approved by a 34-3 vote in the House Education and Labor Committee last week.

The legislation would create 175,000 "new service opportunities" under AmeriCorps, bringing the number of participants in the national volunteer program to 250,000. It would also create additional "corps" to expand the reach of volunteerism into new sectors, including a Clean Energy Corps, Education Corps, Healthy Futures Corps and Veterans Service Corps, and it expands the National Civilian Community Corps to focus on additional areas like disaster relief and energy conservation.

It is the first time the AmeriCorps program, which was created by President Clinton in 1993, will be reauthorized, and supporters say it will have additional funding to match the renewed interest in national service since President Obama’s election and the acute need for volunteerism and charity in tough economic times.

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Jim Sinclair’s Commentary

Surprise, surprise, the straw man is falling

A.I.G. Chief Expected to Offer Bonus Compromise

Edward M. Liddy, the embattled chief of American International Group, is expected to tell a House committee that he will ask employees who received widely criticized bonuses last week to give half the money back.

WASHINGTON — As the lucrative bonuses paid to employees of the American International Group fueled fresh outrage at the White House and on Capitol Hill on Wednesday, the embattled chief executive of A.I.G. said that he had asked some recipients to give at least half the money back.

The chief executive, Edward M. Liddy, made the announcement during his testimony on Wednesday afternoon before a Congressional committee investigating the problems at the insurance giant.

“I have asked the employees of A.I.G. Financial Products to step up and do the right thing,” Mr. Liddy told lawmakers. “Specifically, I have asked those who received retention payments of $100,000 or more to return at least half of those payments.”

The A.I.G. chief said that some recipients had already offered to give up all of their bonuses, and he added later that he expected to get most of the money back.

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Jim Sinclair’s Commentary

No need for the UN to propose this dollar position as it about to occur in the marketplace.

U.N. panel says world should ditch dollar
Wed Mar 18, 2009 11:16am EDT
By Jeremy Gaunt, European Investment Correspondent

LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

"It is a good moment to move to a shared reserve currency," he said.

Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value — though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.

Some analysts said news of the U.N. panel’s recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

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