Jim’s Mailbox

Posted at 2:17 PM (CST) by & filed under Jim's Mailbox.

Jim Sinclair’s Commentary

Compliments of CIGA Pabst.

Francisco d’Anconia, one of the central characters in the novel Atlas Shrugged by Ayn Rand, explains the following in his famous “money speech”:

“…Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or the looters who take it from you by force. Money is made possible only by the men who produce… Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into bread you need to survive tomorrow… Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values… Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims…”

Hello Jim,

I too enjoyed the picture of the family leaving the grocery store. Thought I would share something with you that may put a smile on your face.

A few years ago we were visiting my husband’s 90 year old mother. She cheerily made the comment to us that she felt sure she was getting stronger in her old age.  We asked what made her think that and she replied, "Why, I used to not be able to carry $100 dollars of groceries by myself!" We all laughed but in thinking about we realized it was really NOT funny… but sadly true.

In great appreciation for all you contribute to my family’s financial awareness,
CIGA Jenny

PS – I remember my grocery budget being $12 per week. Seems a long time ago now…

Jim Sinclair’s Commentary

In today’s world, remember Eric De Groot’s statement, "Liquidity floats all boats."

 

Jim,

According to a survey, 95% of the French perceived higher prices in 2011. The perceived inflation in France is 8.5% compared to the official rate of 2.3%.

The perceived inflation is greatest in gas, then food, and finally real estate.

65% of the French declared they plan to start consuming less in order to cope with higher prices.

Best regards,
CIGA Christopher

Dear CIGA Christopher,

The fact that all governments lie has become accepted and not without virtue. Could it be that this worldwide charade is coming to an end?

Jim

Les Français et l’inflation : l’inquiétude n’a jamais été aussi forte
Sondage – 26/03/2012 | 10:13 – 527 mots

Selon le dernier baromètre Robeco/IFOP, 65% des personnes interrogées songent à réduire leurs dépenses. la perception de l’inflation n’a jamais été aussi forte.

Pour la neuvième fois depuis 2008, le spécialiste de la gestion d’actifs, Robeco a demandé à l’IFOP d’interroger les français sur leur perception de l’inflation et leurs intentions d’investissements.. Ce baromètre Ifop / Robeco a été réalisé dans le courant du mois de février dernier, dans un contexte économique
morose marqué par la crise de la dette en zone euro, par un taux de chômage extrêmement élevé et des prévisions de croissance globalement faibles.
Globalement, il esdt intéressant de noter que les français semblent toujours inquiets et ne voient pas le bout du tunnel dans l’immédiat.

95% des sondés ressentent la hausse des prix

85% des personnes interrogées expriment leurs inquiétudes concernant la santé de l’économie française pour les mois à venir et 62% estiment que la lutte contre le chômage devrait être une priorité politique. La consommation des ménages conserve la deuxième place de la liste, suivie des problèmes de la dette de l’Etat et de la compétitivité des entreprises. L’inflation et la lutte contre un euro fort restent des préoccupations secondaires. Cependant, le niveau d’inflation perçu par les Français demeure fortement supérieur au niveau réel (8,5% estimés contre 2,3% réels) et 95% des personnes interrogées ressentent la hausse des prix au cours de l’année passée. Ce score est le plus élevé depuis fin 2008.
Parmi les produits dont les prix sont estimés en augmentation, l’essence demeure le plus cité, avec une perception deux fois supérieure au taux réel (16,8% contre 8,4%). Elle est suivie des produits alimentaires et de l’immobilier.

More…

Jim,

Bellow the journalist tries to quantify the price of an exit of Greece from the euro.

Just for Europe and IMF, he writes:

"On the most conservative estimates, there would be a €500bn exit bill, including non-cash write-offs. But, on current form, that amount could easily be spent every five years or so just to keep Greece in. The final Act in this Greek drama is still waiting to be played. "

For sure, much more QE from the Western Central Banks would be needed.

Best regards,
CIGA Christopher

Dear Christopher,

I can’t comment on Greece with authority, but I can tell you the euro will be here when I am not.

I plan to live longer than Perma Gold Dean Harry Schultz with much less effort.

Regards,
Jim

Eurozone debt crisis: how Greece could exit the euro
As global companies draw up contingency plans for a Greek exit from the euro, we examine the feasibility of

By Alistair Osborne
7:45PM GMT 24 Mar 2012

It’s a tradition of Greek theatre that the real action takes place off-stage. Much the same might be said of the euro drama.

A second bailout and last week’s repayment of a €14.5bn (£12.1bn) bond has produced a dramatic lull in proceedings. Even the president of the European Central Bank said last week that the worst of the crisis is over. But does anyone actually believe there is not another Act to come?

Not if you look at what is going on behind the scenes. Whatever the politicians may pretend, governments, banks and companies continue to make contingency plans for a Greek exit from the euro. And, arguably, the terms of the latest bailout make one easier.

A quick recap of the state Greece is now in highlights the challenges ahead. Athens has got its debt down from €368bn – or a ruinous 163pc of GDP – by strong-arming the private holders of €206bn of bonds into accepting an effective 74pc loss on their loans, once lower coupons are taken into account.

More…

Jim,

Just wanted to let you know for the record, the 4 year rising 2/3 speed resistance line for Gold is still very much intact!

As you mentioned late last night, some may doubt you, but those who do obviously haven’t been following you and your recommendations!

You have been spot on all the way!

Let the manipulators shake the trees… It just means more is available for the CIGAs.

Thanks!
CIGA Buz

Dear Buz,

The true range for 2012 will be $1700 to $2111.

Regards,
Jim

Hello Jim,

Thanks for your blog. In the news on your current topic, Australia just signed up with China for direct trade excluding the US Dollar. China is now our largest trading partner. Also one to watch is the progress of the Asian Bank which will be our IMF in this region of 4 billion people, run by us not Europeans.

Regards,
CIGA Barry

 

Dear Jim,

The picture of the family leaving the grocery store in the 1950s was interesting. Notice the boys, young as they are, being trained to help carry the burden. They are carrying groceries, not iPads.

CIGA Emma

Dear Emma,

I was one of those kids in the 1950s. We were as happy to go out with Mom and Dad to the store. The meat man at the grocery store also gave us a piece a baloney free which he flicked to us as he hand cut mom’s order.

I really liked the Great Atlantic and Pacific Tea company store because you walked around to get your groceries. It was very modern.

At Gristedies there was a man behind the counter. You told him everything you wanted, and he went to got it.

Regards,
Jim