Dear Jim,
As gold and silver continue bull runs, do you have any concern the Comex may invoke extraordinary measures prohibiting any new long positions? This was done to force liquidation of the Hunt Brothers silver positions.
There is a lot of speculation some bullion banks are trapped in heavy short positions. Because you were personally involved in resolving the Hunt Brothers/Comex issues, we CIGAs would greatly appreciate your views on this subject.
CIGA Doug
Dear Doug,
That was a unilateral novation of a contract which is illegal under contract law. They got away with it in the 80s but would probably not get away with it now. Really that means nothing to the long that never sees his silver or gold.
Litigation would break the exchange as a subsidiary of a major corporation, in time resulting in the longs and shorts establishing losses and gains on paper in court at the close of the day, a meaningless exercise that would screw the longs and the shorts in bankruptcy. This would cause a run on gold and silver paper delivery ETFs. It would also shift big money into gold and silver shares.
If you really want gold and you hold futures, you had better take delivery soon.
Regards,
Jim
Jim Sinclair’s Commentary
Self reliance suggests having functioning and fueled generator sets as a requirement because currency induced cost push inflation now prevalent in the Western world creates such interruptions in distribution of necessaries.
Greece facing electricity strikes over austerity
CIGA Eric
The world continues to deal with the ongoing debt crisis. The currency devaluation and austerity programs can lead to disruptions in services once considered birth rights by many.
Greece’s powerful electricity workers’ union says it is considering rolling strikes in May to protest plans to sell off a key stake in the state-run Public Power Corporation as part of a major privatization drive in the crisis-hit country.
The General Federation of PPC Personnel said in a statement posted on its website Wednesday that it is considering successive 48-hour strikes "aimed at changing the wrong decision taken by the government."
The union did not say when it will announce a decision, but has scheduled a news conference for next week.
The Socialist government plans to reduce its stake in PPC from 51 to 34 percent, under a euro50 billion ($71.5 billion) 2011-2015 privatization program.
In response, unions have already called a general strike for May 11.
Source: finance.yahoo.com
Currency-Induced Inflation Driving Asset Prices
CIGA Eric
Currency-induced push inflation has been the dominant driver of price since 2008. Nothing really changes. The vast majority (99%) of the public lives in the economic paradigm of the previous expansion or the world they have come to understand. By the time they realize their standard of livings (i.e. lives) have changed and cannot be easily restored, disinformation, MOPE, and reality-scripted headlines will have hindered actions necessary to preserve wealth.
West Texas Intermediate Crude Oil (OIL) AND Oil to Gold Ratio (OILGLDR): 
Headline: Oil up above $109 on signs of strong US demand
Oil prices rose above $109 a barrel Wednesday after a report showed U.S. gasoline supplies fell for a second week, suggesting higher fuel costs haven’t yet curbed demand.
A weaker dollar — which makes oil cheaper for investors holding other currencies — and rising equity markets in Asia and Europe also helped boost oil markets.
Source: finance.yahoo.com
