In the News Today

Posted at 1:11 PM (CST) by & filed under Harry Schultz.

Jim Sinclair’s Commentary

What can be said in satire is dangerous to say in seriousness.

Stephen Colbert TEARS INTO Obama Over The NDAA Bill
Glynnis MacNicol 

Last week, President Obama signed into law the National Defense Authorization Act, which among other things allows the government to detain indefinitely American citizens suspected of involvement in terrorism.

Last night Stephen Colbert took a brutal swing at the law that “unexpectedly” makes legal “what we’ve already been doing for ten years…we didn’t see that coming! (due to bag over head).”

Fear not, however: “We will not lock up Americans indefinitely…eventually they will die!”

Then he tears into Obama.

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Jim Sinclair’s Commentary

Somebody has a sense of humor. MF Global Treasurer Edith O’Brien, who is in focus in the search for the missing client money, is reportedly refusing to meet with investigators and has asked first for immunity from prosecution. O’Brien has often testified as an expert at the CFTC; her specialty: the protection of customer money at futures firms.

U.S. Inquiry of MF Global Gains Speed
By BEN PROTESS and AZAM AHMED

The investigation into MF Global is intensifying as federal authorities unearth new details and confront potential obstacles in their hunt for roughly $1.2 billion in customer money that disappeared from the brokerage firm.

While prosecutors and regulators have jointly conducted dozens of depositions with former and current employees, a senior official in the Chicago office of MF Global recently declined to meet with the federal authorities, people briefed on the investigation said.

That official, Edith O’Brien, a treasurer at MF Global, is considered a “person of interest” in the investigation, the people said. Federal authorities suspect that she transferred about $200 million to JPMorgan Chase in London on the eve of the bankruptcy of MF Global, money that turned out to be customer cash.

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Jim Sinclair’s Commentary

Debt is the problem.
The problem is permanent.
The gold bull market has a long way to go.

Nation’s debt passes grim milestone

The nation’s debt has reached a symbolic milestone. With gross domestic product of roughly $15 trillion and total debt of $15.23 trillion, our total debt is now bigger than our economy, as USA Today noted Monday.

What’s more, the Obama administration’s projections put our debt at more than $23 trillion by 2020, well in excess of the projected $22.5 trillion GDP. Analysts agree that the rising debt ratio is not good, but they can’t agree on just how bad it is, and while there’s at least some agreement among economists about how to fix the problem, lawmakers have no such common ground — which is one of the biggest hurdles to actually doing something about the debt dilemma.
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First of all, take a deep breath. That $15 trillion doesn’t have to be paid back all at once. Think of it in terms of a household budget: The average household income is a little under $50,000, while the average sales price for single-family homes is about $169,500. Many homeowners owe more than they make in a year, and that’s not cause for alarm in and of itself.

That $15 trillion figure is also a little misleading, said Bill Gale, a senior fellow at Brookings Institution and co-director of the Urban-Brookings Tax Policy Center, because it includes money owed by one government agency to another. A more important figure is net debt, which is the amount the U.S. owes investors and now hovers at around 70 percent of GDP, Gale said.

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