In The News Today

Posted at 2:02 PM (CST) by & filed under In The News.

Dear Friends,

The stairs on the Golden Ladder that will be climbed are:


The steps on the USDX us dollar are:


The timing was April 19th and middle June to establish the launch period.


1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).
2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.
3. Gold rises to $1224 where it hesitates.
4. The OTC derivative market takes on the dollar as short sellers into dollar support.
5. This OTC derivative currency short position builds.
6. It is the US dollar where Armstrong will get his WATERFALL.
7. The main selling takes place when Israel makes a major miscalculation.
8. Hyperinflation is always and will continue to be a currency event.
9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5000.

Alf’s work permits an over-run of the gold price to $3500 in the major 3rd phase, indicating overruns into the major 5th.


Jim Sinclair’s Commentary

How is this for an understatement?

U.S. ‘Problem’ Banks Rise to 15-Year High, FDIC Says
May 27th, 2009

U.S. “problem” banks climbed 21 percent to the highest total in 15 years in the first quarter, and provisions set aside for loan losses weighed on industry earnings, the Federal Deposit Insurance Corp. said.

The FDIC classified 305 banks with $220 billion in assets as “problem” lenders as of March 31, an increase from 252 with the $159 billion in assets in the fourth quarter. Assets at “problem” banks were the highest since 1993, the agency said today, without naming any lenders. The FDIC said its insurance fund slumped 25 percent to the lowest level since 1993

“The banking industry still faces tremendous challenges,” FDIC Chairman Sheila Bair said today at a briefing in Washington. “Asset quality remains a major concern.”

Regulators have taken over 36 lenders this year, including BankUnited Financial Corp. in Florida on May 21 and Silverton Bank of Atlanta on May 1, which combined cost the FDIC’s deposit insurance fund $6.2 billion. Twenty-one banks collapsed in the quarter, the most since late 1992, as the pace of failures accelerated amid the worst crisis since the Great Depression.



Jim Sinclair’s Commentary

The Pakistan government is offering USD$62,000 for the capture or killing of Taliban. Get 10 of your buddies and go get paid USD$620,000 less modest cash.

You can expect a rash of captured but more likely dead "old" Taliban fighters as the Pakistanis elect their grandfathers and elderly family friends to contribute to the common good.

This will be like in the Monty Python movie when the plague body remover roams the streets calling "Bring out your Dead.” The elderly fellow wanders out and was put in the body wagon. He complained that he was not dead. The body remover replied; "You will be soon" and hit him over the head with a club. The same is going to be rampant in Pakistan. How do you tell if a dead guy is a Taliban? You can’t water-board him. Those bodies are going to begin to roll in overflowing wagons, literally. The smell is going to be awful.

See what foreign aid can do to improve the wellbeing of the receiver. Living over there is tough.

Jim Sinclair’s Commentary

With NK Kim unilaterally having cancelled the "Korean War Armistice," going to DEFCON 2 is a reasonable and modest military reaction.

The problem is if North Korea Kim does his usual nothing then he looks more like a hot air machine.

The nuclear threat is resident in his questionable mental condition.

Have you ever seen the movie, "Team America?"

Breaking: US Army moves to DEFCON 2
Thursday, 28 May 2009

Sources close to MiNa claim the US Army has moved their alert level to Defcon 2. This was initiated by the alarming situation in North Korea. The US Army has over 35,000 troops stationed in South Korea, well within reach of North Korean convential weapons.

North Korea has the largest artillery force (can be equipped with nuclear warheads) in the world, which adds more to the already tense situation.

Earlier today, N. Korea’s leader Kim Jong issued threaths to the South Korean and US Navy ships for coming too close to North Korea’s territorial waters. The South Koreans and the Americans, may be positioning themselves for a preemptive strike.

What is DEFCON?

The defense readiness condition (DEFCON) is a measure of the activation and readiness level of the United States Armed Forces. It describes progressive postures for use between the Joint Chiefs of Staff and the commanders of unified commands. DEFCONs are matched to the situations of military severity.


Jim Sinclair’s Commentary

Einhorn will be dead right the day Moody’s downgrades US debt and the entire company gets shipped to Gitmo.

Einhorn calls AAA rating a curse, shorts Moody’s
Chanos warns on impact of government involvement in business
By Alistair Barr, MarketWatch
May 28, 2009, 12:28 p.m. EST

SAN FRANCISCO (MarketWatch) — David Einhorn, head of hedge-fund firm Greenlight Capital, called AAA credit ratings a curse and said he is betting against rating agency Moody’s, during a speech at a closely watched investment conference on Wednesday

Einhorn said that many institutions with AAA ratings, including the U.S. government, turned that supposed benefit into a disaster by borrowing recklessly, according to a hedge-fund investor who attended the conference in New York and spoke on condition of anonymity.

Most of the companies that have run into trouble during the financial crisis were or still are AAA rated, including American International Group (AIG 1.67, +0.01, +0.60%) , Fannie Mae (FNM 0.71, -0.03, -3.80%) , Freddie Mac (FRE 0.78, -0.04, -5.44%) , MBIA (MBI 6.33, -0.17, -2.62%) , Ambac (ABK 1.23, -0.04, -3.15%) and General Electric (GE 13.11, +0.12, +0.92%) , Einhorn noted.

The leading purveyor of AAA ratings is Moody’s (MCO 26.28, -1.87, -6.64%) , so Greenlight Capital is short that company’s shares, the investor quoted Einhorn as saying.

Short sellers borrow a stock, betting its price will fall. When they return the shares to the lender at the original price, they profit from the difference.



Jim Sinclair’s Commentary

Regarding gold, the following is a non-event, is always a non event and will continue to be a non event.

Gold is not copper.

Gold Scrap Supply Won’t Hold Back Next Rally – Mitsui

SINGAPORE (Dow Jones)–Further gains in gold prices won’t be met by a huge increase in gold scrap supply, as happened in the first quarter, Mitsui Global Precious Metals said in a report dated Wednesday.