In The News Today

Posted at 3:48 PM (CST) by & filed under In The News.

I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed.
–Abraham Lincoln

 

My Dear Friends,

I have gotten copies of many articles defining the Greek credit event as a default. None of them mean anything.

As far credit default swaps are concerned (the nuclear weapons of mass financial destruction), there is but one arbiter of default. That body is the International Swaps and Derivative Association.

Unless they declare a default there is no default that will turn credit default swap over the counter derivatives from notional value to full value. That would bust many of the manufacturers of these fraudulent pieces of worthless paper when it comes to performance.

The childish idea that a clearing house somehow could prevent a disaster is totally incorrect. That clearing house would join defunct MF the instant a defaults is declared by the ruling body, the International Swaps and Derivative Association.

Keep in mind the ISDA is made up of representatives from the firms that are the major players in the manufacture of CDSs.

Be real. What the Greek credit event means is "QE to infinity." What present QE to infinity means is a functional $1700 to $2111 for gold’s next step.

Regards,
Jim

 

Jim Sinclair’s Commentary

This speaks for itself. Listen to it.

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Jim Sinclair’s Commentary

Here is a picture that speaks for itself.

The dollar’s future value depends on growth of its use as an international trade settlement vehicle, an event that will not happen.

Chart: ‘America’s Per Capita Government Debt Worse Than Greece’
11:21 AM, Feb 23, 2012

The office of Senator Jeff Sessions, ranking member on the Senate Budget Committee, sends along this chart, showing that ‘America’s Per Capita Government Debt Worse Than Greece,’ as well as Ireland, Italy, France, Portugal, and Spain:

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