For once relax
CIGA Eric

For once relax. Gold is doing well. The rumor that Prechter had become a gold bull is false.

Jim,

It sure is.

A test of the 5/12 highs simply does not have enough energy (force) to break through on a sign of strength today. This is illustrated by REV(E) and volume analysis. Energy is building as gold fights the wall of worry once again.

Eric

Gold ETF (GLD):
^[1]

More… ^[2]

 

Banks in ‘Downward Spiral’ Buying Capital in CDOs (Update1)
CIGA Eric

FASB (Financial Accounting Standard Board), the gatekeepers of honest and transparent auditing, delivered to you by blessing total fabrication in accounting, the Equity Rally in April of 2009 and will deliver to you the second phase of the economic financial disaster. BS is not going to float on artificial OTC derivative assets later in 2010 and 2011.

Jim

Let me throw out these dates: 08/11/10, 04/29/11, 01/16/12

Eric

U.S. banks are fighting to preserve the use of securities that help them appear better capitalized, even as their investments in each others’ notes perpetuate what one regulator calls a “downward spiral” of losses.

The cross-ownership, largely unnoticed by bank supervisors who generally discourage the practice, was made possible by a Wall Street innovation like the ones that allowed subprime mortgages to flourish. Small lenders, such as Riverside National Bank of Florida, were able to sell trust-preferred securities, known as TruPS, because investment bankers packaged them with those issued by dozens of other financial institutions.

Source: bloomberg.com ^[3]

More… ^[4]

Upcoming Treasury Auctions
CIGA Eric

Don’t forget to watch the up coming Treasury Auction Results in the 10- and 30-year for signs of advanced fatigue. Trouble here will foreshadow broader panic in fiat.

Upcoming Auctions:
^[5]

Source: treasurydirect.gov ^[6]

More… ^[7]

Gold Shares Chip Away the Stone
CIGA Eric

Relative strength during weakness will become the leaders during strength.

The 5/19 gap sits over price like an anvil. REV(E) illustrates how price is chipping away the stone (anvil) ^[8]. A retest of the 5/12 highs and a breakout of the huge consolidation pattern ^[9] is only a matter of time and pressure. No amount of spin, MOPE, or dark pools of money can stop the inevitable.

MV Gold Miners Index ETF (GDX):
^[10]

More… ^[11]

Greetings Jim,

I am reviewing Martin Armstrong’s ‘How All Systems Can Collapse Overnight." Reading through the events and actions that brought downfall to the economic activity of the Roman Empire, it seems that the attacks upon the different regions by invading peoples are very similar to the attacks upon the balance sheets by different forms of debt by various groups and organizations. Capital formation was and is now under stress. The currency was debased to finance different activities. The parellels between this period in time and now are frightening!

CIGA Scott

 

Jim Sinclair’s Commentary

Recall when I suggested DELAY as a tactic most likely to be used?

This was a tad obvious.

Hi Jim,

The Financial Crisis Inquiry Commission subpoenaed a certain Wall Street bank yesterday requesting documents relative to their activities during the financial crisis.

In response to the subpoena, the Commission received 2.5 BILLION PAGES of electronic documents "without any clue as to the pertinent sections" requested by the Commission. The bank responded by saying that it’s "committed to providing the FCIC with the information they have requested."

In case there was ever any doubt, it’s now abundantly clear who’s running the show.

Click here to read the article… ^[12]

Best,
CIGA Black Swan

I.O.U.S.A.
CIGA Eric

The numbers that failed to add up in 2007 are nowhere closer to doing so in 2010. In time, David Walker, as well as other visionaries such as Jim, Volcker, Schultz, Faber, etc. that see the warning signs long before the calamity, will be proven correct by the forces of the capital markets.

Change is not driven by political will but rather capital flows assessing risk relative to reward.

David Walker, comptroller general of the U.S., totaled up our government’s income, liabilities and future obligations. He concluded the numbers don’t add up.

Those that have not watched this yet, please do so now.

Source: iousathemovie.com ^[13]

More… ^[14]