Thought For The Evening
Gold will trade at and above $1650. The international investment banks screwed over the world one more time in a short the euro cover operation.
It is so transparent that I would call it HD and Blu Ray quality, yet so many of you got snookered yet again.
The script is a duplicate of last time with every actor playing their part to perfection. The sad part is many of you will again also play the part the next time these guys need five or six billion more for the bonus accounts.
Has it ever dawned on you that playing this game with credit, either in shares or futures, is a death wish for the public?
So many of you will do it again when Gold reaches $100 to $200 higher. It happens every time.
Jim Sinclair’s Commentary
Here comes Harrisburg. They have not retained a bankruptcy attorney to forecast the weather.
The euro will be back into the $1.40s as soon as the short of the euro is covered and transferred to short of the US dollar.
Jim Sinclair’s Commentary
An increase in margin rates confirms a bull market.
CME raises margin requirements for precious metals
10:21PM ET on Monday Nov 15, 2010 by Thomson Reuters
SINGAPORE, Nov 16 (Reuters) – The Chicago Mercantile Exchange said on its website that it is raising initial and maintenance margins for precious metals, effective after the close of business on Nov. 16.
Margins on gold <0#GC:> would be hiked by 5.9 percent and initial margins would rise to $6,075 for 100 ounces, and maintenance margins would go up to $4,500.
Slver <0#SI:> margins will be hiked by 11.5 pct. The initial margin will be $9,788 for 5,000 oz, and maintenance margins are up to $7,250.
CME also raised margins on platinum <0#PL:> and palladium <0#PA:> by 20 percent. The new initial margin on platinum will be $4,950 for 50 oz, and maintenance will be set at $4,500.
Jim Sinclair’s Commentary
The media is really working it to get that cover in the euro for the usual suspects.
The only thing financial TV and the media are working harder on is getting the GM issue oversubscribed.
Greek deficit much bigger than estimate
Greek deficit for 2009 was 15.4% of GDP, not 13.6%, says EU statistics agency
Helena Smith in Athens
Monday 15 November 2010 21.17 GMT
Greece’s goal of reducing its gargantuan debt received a fresh blow today when the EU statistics agency announced that the country’s 2009 budget deficit was much worse than first thought.
Six months after Athens received €110bn (£93bn) in emergency loans from EU nations and the International Monetary Fund to prop up its near-bankrupt economy, Eurostat revealed that Greece’s budget deficit reached 15.4% of GDP last year, substantially higher than its previous estimate of 13.6%.
In April, Eurostat had estimated the debt-to-GDP ratio would reach 115.1%. The revised data meant that Greece’s debt ratio has eclipsed those of every other EU state, officials said. By the end of 2009, its debt is projected to account for 126.8% of GDP.
Greece’s poor bookkeeping was blamed for the budget black holes.
As a team of visiting inspectors from the IMF, the European commission and the European Central Bank arrived in Athens, there was widespread acceptance that the new figures would throw out the fiscal and structural reform programme the socialist government has agreed to in return for the loans, the biggest bailout in history.
Jim Sinclair’s Commentary
Look at how the media is working it. The USA is fine. States of the USA are fine. The euro zone is bad.
This looks like a cover to me.
Eurozone facing ‘survival crisis’
16 November 2010 Last updated at 06:38 ET
The European Union is in a "survival crisis" over eurozone debt problems, the EU Council president has warned.
Speaking hours before eurozone ministers meet to address threats to the bloc’s economic stability, Herman Van Rompuy said that if the euro failed, so too would the EU.
Members such as the Republic of Ireland and Portugal are under fresh scrutiny.
Questions have been raised over whether they can manage their debt without help from EU funds.
Mr Van Rompuy said he was "very confident" the problems could be overcome.
But he added: "We all have to work together in order to survive with the eurozone, because if we don’t survive with the eurozone we will not survive with the European Union."
Jim Sinclair’s Commentary
You have to notice that there is no media comment on this collapse. If the media was being straight with us why not call attention to what looks like the beginning of the end market wise for munis and states of the US zone?
Jim Sinclair’s Commentary
It is interesting that this is mentioned just after the US showed China their naval forces.
China, India, Russia vow to deepen cooperation
Nov 15 05:00 PM US/Eastern
The foreign ministers of developing giants China, India and Russia pledged on Monday to step up cooperation in trade, energy and geopolitical affairs including climate change.
The pledges were made in a joint communique after two days of meetings in the central Chinese city of Wuhan by Chinese Foreign Minister Yang Jiechi and his Russian and Indian counterparts Sergei Lavrov and S.M. Krishna.
The communique also said China, India and Russia had deepened cooperation on international and regional issues during the talks, but stressed that such cooperation would not target "any other country".
The foreign ministers said they supported a "multi-polar, equitable and democratic world order" and expressed their commitment to the use of "multilateral instruments" for finding solutions to global and regional issues.
China and Russia are members of the Shanghai Cooperation Organisation, a grouping of mostly central Asian states that many view as a bid by China and Russia to counter global US influence.
