Hi Jim,
How is this for another Green Shoot – from a California assessor’s perspective:
“It’s worthy of a Dickens story,” said Gus Kramer, the assessor in Contra Costa County, Calif., outside San Francisco. “These people are desperate. They know their home’s gone down in value. They’ve watched their neighborhoods being boarded up. They literally stand in there and say: ‘When can I have my refund check? I need to feed my family. I need to pay my electric bill.’”
Refund check? Mr. Kramer, they are now called IOUs.
CIGA Bernie
Jim,
Overnight money trades at 7%.
Another canary dies in the coal mine.
The bankers are inching themselves down the tunnel, holding that poor little birdie in one hand and a rope tied to the Fed in the other. They pride themselves that their safety precautions are not only adequate, but ingenious. However, while watching tweety for signs of fatigue, cracks forming in the ceiling go unnoticed. They fail to realize that the invisible gas they fear is merely a by product of the mountain of debt poised precariously above their heads. Years of accumulation have created tons of pressure, that pressure is slowly grinding the walls of currency into a fine dust, expelling the sequestered gas. So while they concentrate on the odor (the symptom), they ignore (the cause) that the very structure, the mineshaft itself, is unstable and destine to disintegrate under its own weight. After the collapse, the miners will find that lifeline of little use as a means of escape.
CIGA Chicken Little
Jim Sinclair’s Commentary
Pedro makes a key point here. Consider it deeply.
Jim,
I think this might have slipped out by mistake. How can a Security be "100% backed by physical gold", when said Gold is "held by an independent custodian". Like all ETFs (and ETCs) they give the appearance of being purely physical when it is doubtful they are. Custodians layer upon custodians, verifiability breaks down and the truth comes out that it’s all dependent on OTC derivatives. That is reason enough to take delivery.
Regards,
CIGA Pedro
"Liquidity for Dubai Gold is backed by the London OTC gold market. Mac Capital has said it ‘believes that Dubai Gold makes a sound addition to an investment portfolio’."
Jim
They are all getting ready. 123 days to go.
CIGA BJS
France Says Changing World Requires More Currency Coordination
By Mark Deen and Francine Lacqua
July 5 (Bloomberg) — Finance Minister Christine Lagarde and Bank of France Governor Christian Noyer called for increased global coordination of currencies, joining a debate fanned by emerging markets from China to Russia.
“We must explore better coordination of exchange rate policy,” Lagarde told reporters today at a conference in Aix en Provence, France. Noyer said at the same event that “we really need to make sure there is a greater stability between the big currencies in the period to come.”
The French call came three days before leaders of the Group of Eight countries meet in Italy with counterparts from China and India. Ahead of the talks, China, India and Russia have pressed for a rethinking of how the world’s U.S. dollar- dominated currency reserves are composed.
The French call came three days before leaders of the Group of Eight countries meet in Italy with counterparts from China and India. Ahead of the talks, China, India and Russia have pressed for a rethinking of how the world’s U.S. dollar- dominated currency reserves are composed.
Lagarde’s comments may signal that France accepts the emerging economies have the right to a bigger say in how the world economy is run. Questions need to be addressed about “the balance of currencies and the role of currencies in a world that has changed because of the crisis and the growing role of emerging countries,” she said.
