Dear Jim,

In just 8 words, Lawrence Williams speaks volumes. It’s a long article but these 8 words are enough to make the key point.

Harry Schultz

Gold the protector as democracies move towards totalitarianism

Jim,

Today the ECB provided a nearly half trillion euro loan to European banks.

More than 500 European banks took this 3 year loan at 1% interest.

The ECB plans to do another 3 year loan offer early next year (maybe February).

In exchange, banks are supposed to buy Sovereign Debt from European countries. Banks can pocket the huge differential in interest! What a Christmas present!

Jim, you said it first. Western governments are into QE to infinity!

Best regards,
CIGA Christopher

Analysis: ECB cash to give indirect boost via banks
By Natsuko Waki and Steve Slater
LONDON | Thu Dec 22, 2011 9:21am EST

(Reuters) – The European Central Bank’s offer of cheap long-term cash is an attempt to prevent a rapid bank deleveraging shock rather than U.S.-style money printing that will filter through to the real economy and leach into other markets.

Italian and Spanish government bonds may benefit a little from newly flush banks buying them. But the money is most likely to be used to help ease banks’ immediate refunding needs – they need to sell up to 3 trillion euros of assets to deleverage and meet strict new regulatory capital requirements.

On the other hand, the fact that a credit crunch has been averted and deleveraging can now happen more smoothly removes twin potential threats to Europe’s struggling economy.

And the ECB’s three-year ultra-cheap loans may ease a wave of capital outflows by U.S. money market funds from European banks, which has gummed up interbank lending.

The borrowing of 490 billion euros by over 500 banks – the largest ever amount of liquidity pumped into the financial system – represents nearly two thirds of all the European bank bonds maturing in 2012. It is almost 1-1/2 times the 2012 combined sovereign bond issuance of Spain and Italy.

More… ^[1]

Mr. Sinclair,

I am happy to report that (after some mild aggravation and being bounced around from Computershare US to Computershare Canada a few times) that ALL of my securities (UXG, TRX, AAU and GBG) have been directly registered in my name AND the certificates are on their way!  Admittedly, it was a royal pain, but “now is not the time to be lazy!” I can’t thank you enough for manning the Gold Suicide Hotline. Last question for you – I am in possession of all of my physical bullion. However, my cash is with the banks. Should I withdraw and stick it with my coins?

Have a Merry Christmas!
CIGA Jeff

Jeff,

Jeff you are safe. You need six months of cash available to you. The rest should be in coins or bars in your possession.

Merry Christmas!

Respectfully,
Jim