Dear Jim,

Reduces everything else to diarrhea of the mouth.

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." –Trader Dan Norcini

CIGA Eric

Jim Sinclair’s Commentary

Courtesy of CIGA Eric. ^[1]

Jim,

You have done it again. Your countdown looks accurate in light of this blatant monetization…

Best,
CIGA BT

Fed surreptitiously buys half of last week’s 7-year bond auction
9:41p ET Thursday, August 6, 2009

Dear Friend of GATA and Gold:

Financial market blogger Chris Martenson today reported that the Federal Reserve this week surreptitiously bought almost half the seven-year U.S. Treasury bonds that were auctioned last week. While this is the sort of debt monetization that Fed officials said would not happen, it is probably not the first debt monetization that has taken place recently, just the first monetization the Fed has been caught at. The Fed’s attempt to conceal its actions is far more objectionable and should be remembered whenever there are official denials of intervention in the gold market.

Martenson’s report can be found at his Internet site here:

http://www.chrismartenson.com/blog/fed-buys-last-weeks-treasury-auction/… ^[2]

Market analyst Karl Denninger elaborates on Martenson’s disclosure at his own Internet site, the Market Ticker, here:

http://market-ticker.denninger.net/archives/1304-BLATANT-Monetization-Un… ^[2]

It’s a fair assumption that the U.S. government’s surreptitious market intervention is nearing desperation levels.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Dear Jim,

I see more clearly by the day what you have spoken come to pass. It seems that all repudiation of debt comes down to the lowest common denominator, the individual. Moreover, if they are taxed to death they do not have extra money for savings or discretionary spending… therefore all debt at the state, federal, corporate and personal levels can only truly be paid off by savings from individuals as their cash inflows are citizen’s cash outflows. Now if incomes are dropping and taxes are increasing, what is the likelihood then of any meaningful recovery if the debt is still there?

You have for the last 6+ years been encouraging us to be defensive. This I see is the only practical solution to the mess, yet people not only do not listen to you, they ridicule and insult you. (they have nothing between their ears)

Keep up the great work you are doing.  I know firsthand other CIGAs appreciate deeply what you do! The recovery really comes down to the lowest common denominator of the individual taking financial responsibility and prudent action.

Best,
CIGA BT

American Incomes Head Down, Threatening Recovery in Spending
By Shobhana Chandra

Aug. 5 (Bloomberg) — Household income in the U.S. is weakening as the influence of the government’s stimulus plan wanes, prompting economists, Federal Reserve officials and a Nobel laureate to warn that consumer spending may struggle.

“Consumers have started to change their behavior and they are going to save more,” said Richard Berner, co-head of global economics at Morgan Stanley in New York and a former researcher at the Fed. “You have pressure on wages, you have employment still declining.”

More… ^[3]

Jim,

The big boys know what’s going on. US dollar diversification will be quite in vogue by end of year, if not sooner.

CIGA BJS

Tudor Investment Calls Stock Gain a Bear-Market Rally (Update2)
By Saijel Kishan

Aug. 6 (Bloomberg) — Tudor Investment Corp., the $10.8 billion hedge-fund firm run by Paul Tudor Jones, said equity markets could decline later this year, creating buying opportunities.

Slowing growth in China and the return of front-page stories on swine flu may be “further catalysts for global equity markets to pause in September,” the Greenwich, Connecticut-based firm said in an Aug. 3 client letter, a copy of which was obtained by Bloomberg News.

More… ^[4]

Dear CIGA BJS,

Today is the opportunity for dollar diversification, a planetary boon for central banks.

Regards,
Jim