Dear CIGAs,
Happy Labor Day!
Jim Sinclair’s Commentary
When COT takes on government they, that is COT, loses badly.
It happened in the 70s and has happened again.
Look for gold to reach the numbers given you one time only!
China, Bernanke, and the price of gold
By Ambrose Evans-Pritchard Economics
September 7th, 2009
China has issued what amounts to the “Beijing Put” on gold. You can make a lot of money, but you really can’t lose.
I happened to see quite a bit of Cheng Siwei at the Ambrosetti Workshop, a gathering of politicians and global strategists at Lake Como, including a dinner at Villa d’Este last night at which he listened very attentively as a number of American guests tore President Obama’s economic and health policy to shreds.
Mr Cheng was until recently Vice-Chairman of the Communist Party’s Standing Committee, and is now a sort of economic ambassador for China around the world — a charming man, by the way, who left Hong Kong for mainland China in 1950 at the age of 16, as young idealist eager to serve the revolution. Sixty years later, he calls himself simply “a survivior”.
What he said about US monetary policy and gold – this bit on the record – would appear to validate the long-held belief of gold bugs that China has fundamentally lost confidence in the US dollar and is going to shift to a partial gold standard through reserve accumulation.
Jim Sinclair’s Commentary
The writer thinks this is a new event. China been a buyer for many years.
You think gold is at $990 on US or Euroland demand? Think again!
Once again the West destroys while Asia survives. Western financial leadership worries only about a big enough political lobby to keep FASB quiet and OTC derivatives alive, well and destructive.
China’s hidden gold purchase policy
Evidence suggests that China is continuing to buy gold for its reserves, but is doing so in a manner designed not to over-disrupt the global gold market.
Author: Lawrence Williams
Posted: Monday , 07 Sep 2009
LONDON – There seems to be little doubt that China continues to buy gold for its reserves, but surreptitiously, as it has no desire to move the markets unduly, and it knows full well that any announcement of a big gold purchase will likely do just that.
It is not exactly a secret that Chinese government economists and bankers are disturbed about the U.S. Quantitative Easing moves. They feel that this has ultimately to lead to significant inflation and a corresponding big decline in the value of the dollar within the next few years and with some $2 trillion in reserves this is not something they are keen to precipitate by announcements of a major gold purchase programme – or even by showing the world that its gold reserves are increasing.
In an interesting article in the U.K’s Daily Telegraph, International Business Editor Ambrose Evans-Pritchard comments on views expressed by Cheng Siwei who he describes as being "until recently Vice-Chairman of the Communist Party’s Standing Committee, and now a sort of economic ambassador for China around the world" and thus in a good position to understand the country’s policies vis-a-vis gold purchases and the dollar.
The gist of the comments was that China has fundamentally lost confidence in the dollar and is looking towards a more significant proportion of gold in its reserves.
But this is easier said than done without causing huge disruption in the gold market itself and Cheng is quoted thus: "Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as to not stimulate the market".
Jim Sinclair’s Commentary
If you had to choose between Koda and our financial leadership what would be your selection?
That is no-brainer.
Dog saves toddler lost in Yukon bush
“A bear could have got him. Anything could have happened…What we do know is the dog stuck with him, all night and all the next day”
Mark Hume
Vancouver — From Monday’s Globe and MailLast updated on Monday, Sep. 07, 2009 12:02PM EDT
When a young British Columbia family stopped to make camp in the Yukon wilderness they were surprised to see a scruffy dog that looked a bit like a coyote come out of the bush.
They saw the mongrel had porcupine quills sticking out of its face and tried to help, not knowing that simple act of kindness would be repaid in the most remarkable way – with the deliverance of their son from a life-threatening ordeal.
Two-year-old Kale disappeared into the bush wearing only a T-shirt on a cool and rainy night late last week. More than 24 hours later, search-and-rescue authorities found him alive, thanks in part to Koda, the yellow mutt with the quill-covered snout who protected the toddler and kept him warm overnight.
“A bear could have got him. Anything could have happened,” said Mike Bondarchuk, a local hotel owner who volunteered in the search for Kale. “What we do know is the dog stuck with him, all night and all the next day.”
Kale and Koda will now be able to stick together for good – Koda’s owner has given the dog to the toddler’s family.
Jim Sinclair’s Commentary
The bigger problem is that Israel has a history of going at it alone when threatened. In 1967 they went on the 6 day war unilaterally. They hit the Iraqi nuclear facility in 1981 and the Syrian reactor in 2007, all supposedly without informing the USA.
In September Iran could easily qualify for an Israeli hit unless they back off their present nuclear activities. Israel, unlike the West, will not be fooled by the standard Iranian BS.
There have been accusations in the US that before the recent Presidential election the sitting administration wanted the threat level raised.
Germany on Alert
Intel agencies are swamped with threat warnings.
In recent weeks intelligence officials in Germany have been inundated with a rush of terror-threat warnings, NEWSWEEK has learned. But investigators are not sure how much of the information is genuine, and suspect some sources are making up stories in an effort to scam money out of German spy and law enforcement agencies nervous about a possible attack in the run up to the country’s Sept. 27 elections.
Intelligence that has been flowing into German counterterrorism units includes jihadist video messages, electronic "chatter," and information from informants who claim to have specific details about impending strikes. The video messages are among the most alarming indicators, said a European counterterrorism official, who like others quoted in this article, asked for anonymity when discussing sensitive information. Especially disturbing is the number of videos that make specific threats against Germany, the official said, noting that it is much higher than in the past.
European and American counterterrorism officials say that they are concerned about the possibility that jihadists may see Germany’s national elections, in which the future of Christian Democrat Chancellor Angela Merkel’s coalition government with Social Democrats is at stake, as an opportunity to make a political statement. The officials believe jihadists may see potential parallels between the preelection period in Germany and the period before the jihadist bombings of commuter trains in Madrid on March 11, 2004.
Jim Sinclair’s Commentary
Agents of Turkey. Fits the program.
Breaking Down the Under-Oath Disclosures of the Formerly-Gagged Sibel Edmonds…
It has now been over a week since the video tape and transcript from the remarkable 8/8/09 deposition of former FBI translator-turned-whistleblower Sibel Edmonds was publicly released. Previously, the Bush Administration invoked the so-called "state secrets privilege" in order to gag Edmonds, in attempting to keep such information from becoming public.
The under-oath, detailed allegations include bribery, blackmail, espionage and infiltration of the U.S. government of, and by current and former members of the U.S. Congress, high-ranking State and Defense Department officials and agents of the government of Turkey. The broad criminal conspiracy is said to have resulted in, among other things, the sale of nuclear weapons technology to black market interests including Pakistan, Iran, North Korea, Libya and others.
Even as many of these allegations had been previously corroborated to varying extents, by a number of official government reports, documents and independent media outlets (largely overseas), not a single major mainstream media outlet in the U.S. has picked up on Edmonds’ startling claims since her deposition has been made fully available.
Jim Sinclair’s Commentary
This is the meat of the matter of point #1 of the mid July 2009 Chinese/USA financial summit.
#2 is another way of expressing #1, China’s desire for a Super Sovereign Currency alternative.
All this comes to head middle of the fourth quarter.
China alarmed by US money printing
The US Federal Reserve’s policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
By Ambrose Evans-Pritchard in Cernobbio, Italy
Published: 9:06PM BST 06 Sep 2009
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China’s green energy drive, said Beijing was dismayed by the Fed’s recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
China’s reserves are more than – $2 trillion, the world’s largest.
"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added.
The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction.
Mr Cheng said the Fed’s loose monetary policy was stoking an unstable asset boom in China. "If we raise interest rates, we will be flooded with hot money. We have to wait for them. If they raise, we raise.
"Credit in China is too loose. We have a bubble in the housing market and in stocks so we have to be very careful, because this could fall down."
Jim Sinclair’s Commentary
The West has no economic plan, no idea of where it wants to be 10, 20 or 100 years from now, and not even an idea of where it will be tomorrow.
Today the way of the West is to make profit any way it can, leaving behind it death, destruction and ruination.
This was crystal clear to me 24 years ago. Do they not have eyes to see? They are too busy inventing more OTC derivatives, now on DEATH.
China moves on rare earths a threat to global supplies
Mooted moves by China to further control exports of rare earths, where it may supply as much as 98% of current global needs, is stimulating new developments elsewhere.
Author: Lawrence Williams
Posted: Tuesday , 18 Aug 2009
LONDON – Australian junior miner Arafura Resources (ASX:ARU), which is developing the Nolans phosphate hosted rare earths deposit in the country’s Northern Territory, is making great play of a draft report submitted by China’s Central Ministry of Industry and Information Technology calling for a significant tightening of China’s rare earths export market. Currently China dominates, producing about 95% (some put it at 98%) of global supply, and any tightening could have a dramatic effect on industries which use rare earth elements which are incorporated into many modern technological devices, including superconductors, high-flux magnets, electronic polishers, refining catalysts and hybrid car components. With a huge increase in hybrid car production likely in the years ahead, control of the rare earths market may be vital to global advances in this type of technology.
Arafura says that the Chinese draft report, entitled Rare Earths Industry development Plan 2009‐2015, has been submitted to the China State Council for review and implementation in 2010, and outlines plans to restrict Chinese administration of rare earth quotas, totally banning the export of some rare earths and consolidating a large number of Chinese rare earth facilities.
