Dear Extended Family,
I am back in Dar for a working early weekend, and then returning to Connecticut.
It is like old days here in that I may well be traveling much more often doing exciting things.
You see that we here never forget you when traveling.
It looks like Kenny has nailed this week’s gold market.
Respectfully,
Jim
Jim Sinclair’s Commentary
Words from Master Kenny:
"If gold does hold and bottom from this current support level of 1770 / 1790 – at this point in time, the very near term positive bias just now emerging, may very quickly return to its longer term bull much sooner than many expected."
David Duval’s Commentary
Leverage your way out of the problem that leverage created!
Geithner presses EU to act; meets resistance
By John O’Donnell and Robin Emmott
WROCLAW, Poland | Fri Sep 16, 2011 1:28pm EDT
(Reuters) – U.S. Treasury Secretary Timothy Geithner urged EU finance ministers on Friday to leverage their bailout fund to better tackle the debt crisis, and to start speaking with one voice, but there was no agreement on what steps to take.
In a 30-minute meeting with euro zone ministers, Geithner pressed for the 440 billion euros European Financial Stability Facility (EFSF) to be scaled up to give greater capacity to combat the problems infecting Greece, Portugal, Italy and other states, a senior euro zone official said.
One analyst familiar with the proposal said it would involve the EFSF guaranteeing a portion — perhaps 20 percent — of potential losses on euro zone debt, so that its capital would effectively stretch five times further.
But ministers were resistant to Washington telling the 17-country euro zone and its finance chiefs what they should do.v
Jim Sinclair’s Commentary
QE, a stealth default, on US debt!
China to ‘liquidate’ US Treasuries, not dollars
By Ambrose Evans-Pritchard
The debt markets have been warned.
A key rate setter-for China’s central bank let slip – or was it a slip? – that Beijing aims to run down its portfolio of US debt as soon as safely possible.
"The incremental parts of our of our foreign reserve holdings should be invested in physical assets," said Li Daokui at the World Economic Forum in the very rainy city of Dalian – former Port Arthur from Russian colonial days.
"We would like to buy stakes in Boeing, Intel, and Apple, and maybe we should invest in these types of companies in a proactive way."
"Once the US Treasury market stabilizes we can liquidate more of our holdings of Treasuries," he said.
To my knowledge, this is the first time that a top adviser to China’s central bank has uttered the word "liquidate". Until now the policy has been to diversify slowly by investing the fresh $200bn accumulated each quarter into other currencies and assets – chiefly AAA euro debt from Germany, France and the hard core.
We don’t know how much US debt is held by SAFE (State Administration of Foreign Exchange), the bank’s FX arm. The figure is thought to be over $2.2 trillion.
The Chinese are clearly vexed with Washington, viewing the Fed’s QE as a stealth default on US debt. Mr Li came close to calling America a basket case, saying the picture is far worse than when Ronald Reagan and Margaret Thatcher took over in the early 1980s.
