In The News Today

Posted at 12:17 PM (CST) by & filed under In The News.

My Dear Extended Family,

Have you taken notice of the dollar/yuan relationship lately? You might find it interesting.

Regards,
Jim

 

Jim Sinclair’s Commentary

It has begun and will accelerate. QE to infinity is guaranteed.

Providence Bankruptcy Seen as Unavoidable on Budget Gap
By Brian Chappatta and Romy Varghese – Mar 28, 2012 4:12 PM MT

Providence (1055MF), Rhode Island’s capital and biggest city, probably will seek bankruptcy court protection to deal with a budget deficit, Robert Flanders, the state- appointed receiver for nearby Central Falls, said yesterday.

“I don’t see how they can get out of it without going there,” said Flanders, a former state Supreme Court justice and a partner at Hinckley, Allen & Snyder LLP in Providence. He put Central Falls into bankruptcy in August and has since torn up contracts with city workers and cut pension benefits.

Providence Mayor Angel Taveras has put pressure on Brown University and other nonprofit organizations to help close a budget gap of at least $20 million, while Governor Lincoln Chafee is pressing lawmakers for action on measures to curb municipal pension costs. Unsustainable retiree expenses helped push Central Falls (1058MF) into insolvency. Moody’s Investors Service cut Providence debt a step to Baa1, third-lowest investment grade, this week citing its “strained” finances.

“Bankruptcy is not the preferred option for restoring Providence’s fiscal health; it is the last option, and I will do everything in my power to prevent it from happening,” Taveras said in a statement in response to a request for comment on Flanders’ remark. “I respectfully disagree with Judge Flanders that bankruptcy is unavoidable.”

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Jim Sinclair’s Commentary

This morning’s rumor in GB.

US, UK and France consider oil release to curb fuel prices
France is in talks with the United States and Britain on a possible release of strategic oil stocks to push fuel prices lower, French ministers said on Wednesday, four weeks before the country’s presidential election.
By Telegraph staff and agencies
10:20PM BST 28 Mar 2012

Earlier in March, British sources said London was prepared to cooperate with Washington on a release of strategic oil stocks that was expected within months, in a bid to prevent fuel prices choking economic growth in what is also a US election year.

France’s Energy Minister Eric Besson told journalists after the weekly ministers’ meeting that the United States had asked France to join it in a possible emergency inventory release.

Such a release could happen "in a matter of weeks", Le Monde daily said on Wednesday, citing presidential sources.

"It is the United States which has asked and France has welcomed favourably this hypothesis," Besson said. He also said that the countries were awaiting conclusions from the International Energy Agency (IEA), which coordinates emergency stock releases in case of severe oil supply disruption.

The French budget minister and government spokeswoman, Valerie Pecresse, also told journalists France had joined the United States and the UK in IEA consultations to receive authorisation to draw from strategic stocks.

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Jim Sinclair’s Commentary

Slowly but consistently the Chinese are enfranchising the Yuan.

Currency Chart for CNY vs. USD over 2-years

This currency chart displays the value of the Chinese Yuan in relation to $1 US Dollar (CNY/USD) over a 2-year period. To view the currency graph over different time period please click the links below the chart.

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Jim Sinclair’s Commentary

The gold takedown today is so transparent that it screams manipulation!

Ah well, infinite debt ceiling dead ahead. Makes me uncomfortable, alright.

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Jim Sinclair’s Commentary

"Stop the insanity and get it all together."

The advice has not changed and is more meaningful now than then.

 

Jim Sinclair’s Commentary

It is interesting how both natural and financial disasters like the Gulf Oil spill and Japan’s pollution of the world are simply denied by MSM. There was no default in Greece, just a "proactive restructuring" as the sheeple sleep on.

Do any of you recall the movie, Advice to Married Men? This is denial strategy.

1 of Japan’s damaged reactors has high radiation, no water, renewing doubts about stability
By Associated Press, Published: March 27

TOKYO — One of Japan’s crippled nuclear reactors still has fatally high radiation levels and hardly any water to cool it, according to an internal examination Tuesday that renews doubts about the plant’s stability.

A tool equipped with a tiny video camera, a thermometer, a dosimeter and a water gauge was used to assess damage inside the No. 2 reactor’s containment chamber for the second time since the tsunami swept into the Fukushima Dai-ichi plant a year ago. The probe done in January failed to find the water surface and provided only images showing steam, unidentified parts and rusty metal surfaces scarred by exposure to radiation, heat and humidity.

The data collected from the probes showed the damage from the disaster was so severe, the plant operator will have to develop special equipment and technology to tolerate the harsh environment and decommission the plant, a process expected to last decades.

Tuesday’s examination with an industrial endoscope detected radiation levels up to 10 times the fatal dose inside the chamber. Plant officials previously said more than half of melted fuel has breached the core and dropped to the floor of the primary containment vessel, some of it splashing against the wall or the floor.

Particles from melted fuel have probably sent radiation levels up to dangerously high 70 sieverts per hour inside the container, said Junichi Matsumoto, spokesman for Tokyo Electric Power Co.

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Jim Sinclair’s Commentary

Do not expect to see reports on this in MSM.

BRICS summit to explore creation of bank
Group of five rising powers to discuss creation of "South-South" development bank in mould of World Bank.
Last Modified: 28 Mar 2012 14:55

The proposal of a development bank is high on the agenda at the summit of the five BRICS bloc nations – Brazil, Russia, India, China and South Africa – starting on Thursday in New Delhi.

The proposal for a "South-South" development bank in the mould of the World Bank is one of the main points to be discussed by the group of five rising powers at the fourth BRICS summit.

The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.

"What will be discussed (in New Delhi) is the possibility of setting up a BRICS development bank for infrastructure projects, development, not only in member countries but also in developing countries," Maria Edileuza Fonteneles Reis, a senior Brazilian foreign ministry official, said.

Fernando Pimentel, the Brazilian industry and trade minister, told reporters in Brasilia last week, "the proposal to set up a BRICS bank, an international, investment bank of these five countries," is the main item on the agenda.

He said that the countries would sign a deal at the summit to study the creation of the bank.

Ambitious project

Sudhir Vyas, a senior Indian foreign ministry official, told reporters on Monday that the BRICS would have to determine how the bank would be structured and capitalised. Such an ambitious project would take time, he said.

"We don’t set up a bank every ordinary day," he said.

Pimentel said the proposed bank did not mean "abandoning multilateral mechanisms" such as the World Bank (WB) and the InterAmerican Development Bank (IDB) but was a response to today’s economic necessities.

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"A benchmark equity index derivative shared by the stock exchanges of the five Brics nations will be launched on Friday, the exchanges involved said earlier this month. They would be cross-listed, so can be bought in local currencies.

The leaders are also expected to sign agreements allowing their individual development banks to extend credit to other members in local currency, a step towards replacing the dollar as the main unit of trade between them."

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Jim Sinclair’s Commentary

Add this to the peace time Marshall law by presidential edict and you will understand the auction of my Sunnyview Farm promoted in the top left corner here on JSMineset.

On multiple occasions I have broadcast my message to you by my action of buying gold. All these changes are not for fun or wall paper. They are tools that are presently or going to be used in the future.

I have told you for years that if you did not have privacy do not try and create it as Big Brother watches everything, especially bank wires via the Swift system. Privacy is DEAD everywhere in the Western world.

Somebody in the family must protect the family, and make way for the extended family. Many times I have broadcast a message by example. Recall I stood ready to buy back every gold coin you bought at $400. Did you do anything? Recall the wager on the price of gold at $1650. Did you do anything?

You will recall the auction of my Sunnyfield Farm in 2015-2017. Will you have done anything?

Probably not.

10 Reasons Why Nothing You Do On The Internet Will EVER Be Private Again

The Internet is rapidly being transformed into a Big Brother control grid where privacy rights are being systematically strangled to death. The control freaks that run things have become absolutely obsessed with watching, tracking, monitoring and recording virtually everything that you do on the Internet. One thing that you can count on is that nothing you do on the Internet will ever be private again. In fact, if you are obsessed with privacy then the last place you want to be is on the Internet. Most Americans have absolutely no idea how far Internet surveillance has advanced in the past few years. At this point, it would be hard to imagine any place less private than the Internet. Do not ever put anything on the Internet that you would not want the authorities or your employer to hold you accountable for. Basically, the Internet is creating a permanent dossier on each one of us, and we contribute to this process by freely posting gigantic volumes of information about ourselves on social media websites such as Facebook and Twitter. The Internet is the greatest tool for mass communication that the world has perhaps ever seen, and it gives average citizens the ability to communicate with each other like never before, but there is also a downside to using the Internet. Everything that we do on the Internet is being watched, monitored and recorded and there is no longer any such thing as Internet privacy. If you think that you still have any privacy on the Internet, then you are either ignorant of what is going on or you are being delusional.

The following are 10 reasons why nothing you do on the Internet will ever be private again….

#1 The Federal Government Can Now Retain Your Internet Activity For Five Years – Even If You Have No Links To Terrorism

In the past, the National Counterterrorism Center could only retain information about you for 180 days if you did not have any links to terrorism.

Well, that has now completely changed.

Attorney General Eric Holder has signed new guidelines which will now allow the National Counterterrorism Center to hold on to your private information (including your Internet activity) for five years.

But an extra four and a half extra years is no big deal, right?

#2 Potential Employers Are Demanding To See Your Internet Activity

In the past, potential employers would pull up the social media profiles of job candidates in order to get a better idea of who they might be hiring.

But now, many potential employers are actually demanding the passwords to the Facebook accounts of job applicants.

The following comes from a recent CBS News report….

The bad news is that employers are increasingly asking job seekers for their Facebook and other social-media passwords as part of the process of vetting them.

While it’s unclear how widespread that practice is, there’s plenty of anecdotal evidence to suggest that it is happening with increasing frequency, as CBS MoneyWatch’s Suzanne Lucas details. You can, of course, refuse to give a job interviewer your passwords. But expect your employment application to hit the round file, or the trash, if you don’t cooperate.

#3 Law Enforcement Is Watching You

Do you remember the father that posted that "Facebook Parenting for the troubled teen" video that went wildly viral all over the Internet earlier this year?

That video was watched more than 31 million times, but it also resulted in both the police and Child Protective Services officials visiting his home.

So be careful what you post on YouTube. If you post something that they don’t like, law enforcement personnel may come knocking on your door.

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Jim Sinclair’s Commentary

This looks close enough to be the true range of gold at $1700 to $2110.

"The analysts forecast that gold will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6, and $1,940 over the next year. "

Gold Price ‘Too Low’: Goldman Sachs
Wednesday, 28 Mar 2012 | 7:06 AM ET
By: Catherine Boyle and Madeline Laskoski

The price of gold, one of the most eagerly watched indicators of market confidence, is currently “too low” relative to real interest rates, according to commodities analysts at Goldman Sachs. The analysts forecast that will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6, and $1,940 over the next year.

“At current price levels gold remains a compelling trade but not a long-term investment,” they wrote in a note.

They argue that U.S. real interest rates are the most important driver of the price of gold in dollars – but that this relationship broke down late last year and has not yet returned to the level current negative or low yields on 10-year Treasurys imply. The low yields have come following the Federal Reserve’s Operation Twist – which involved the central bank buying up longer-term Treasurys and selling shorter-term Treasurys and helped restore the markets’ confidence in the U.S.

“We believe that despite last fall’s decline in 10-year TIPS yields, the gold market may have been expecting that real rates would soon be rising along with better economic growth, leading to a sharp decline in net speculative length in gold futures,” the analysts said.

“Our U.S. economists expect subdued growth and further easing by the Fed in 2012, which should push the market’s expectations of real rates back down near 0 basis points and gold prices back to our 6 month forecast.”

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Jim Sinclair’s Commentary

There is no practical means to drain the liquidity.

The operative word is PRACTICAL.

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Jim Sinclair’s Commentary

The MOPE word for default is restructuring.

Contagion may be called "following the good example of successful restructuring."

"The risk of a Spanish debt restructuring is higher now than it has been since the beginning of the crisis, Citigroup chief economist William Buiter has said. "Spain looks likely to enter some form of a troika program this year, as a condition for further [ECB] support for the Spanish sovereign and/or Spanish banks."

Jim Sinclair’s Commentary

Those of you that said he was the only living heart donor are clearly wrong.

We always knew that the Vice President had a heart.

The only question has been whose.

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Jim Sinclair’s Commentary

The newest cure to a major financial problem is to declare there is none.

The details on this event that are covered up probably would fill the Gutenberg Bible.

We all know what a honey DTCC is.

Greece Credit Swaps Sellers Paid $2.89 Bln to Settle, DTCC Says
By Shannon D. Harrington on March 27, 2012

Banks, hedge funds and other investors that sold credit-default swaps protecting against losses on Greece bonds paid a net $2.89 billion to settle the contracts, according to the Depository Trust & Clearing Corp.

The payouts were completed yesterday after the nation took steps to force investors this month to participate in the biggest sovereign-debt restructuring in history, New York-based DTCC, which runs a central repository for the market, said in an e-mailed statement today.

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DTCC Successfully Completes Greek CDS Restructuring Credit Event Processing
press release
March 27, 2012, 3:32 p.m. EDT

NEW YORK, Mar 27, 2012 (BUSINESS WIRE) — The Depository Trust & Clearing Corporation (DTCC) announced today that payments on sovereign credit default swaps contracts related to Greece were successfully completed.

DTCC’s Trade Information Warehouse (TIW) provides post-trade processing services for OTC credit derivative trades. TIW has completed the restructuring event for the Hellenic Republic (Greece sovereign entity) for single name and index (ITRAXX SovX) transactions. US$2.89 billion in net funds (U.S. dollar equivalent) were transferred on March 26 from net sellers of protection to net buyers of protection.

The auction for Greece sovereign bonds was held on March 19. The auction was conducted in accordance with the International Swaps and Derivatives Association (ISDA) protocols. Markit and Creditex are the official administrators of credit event auctions ( www.creditfixings.com ).

DTCC’s Warehouse is the global electronic central registry for credit default swaps. With a client base that includes virtually all global derivatives dealers and almost 2,300 buy-side firms globally in more than 78 countries, about 98% of all credit default swaps traded are in the Warehouse.

DTCC posts data on the outstanding gross and net notional values on the top 1,000 single name entities underlying CDS contracts and all CDS indices each week. The data is updated every Tuesday after 5 p.m. ET (2200 GMT). The data is available at: http://www.dtcc.com/products/derivserv/data/index.php in Tables 6 and 7. Global regulators are provided more confidential and up-to-date data through a special regulators’ Web portal.

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Jim Sinclair’s Commentary

Here is a German program to repatriate their gold holdings from the cellar of the NY Fed.

Dear supporters of our campaign “Repatriate our Gold!”:

I would just like to inform you about today´s launch of our initiative which you have all agreed to sign. Thank you for your support, appreciated! You can find the list with all supporters online at our campaign website http://www.gold-action.de/campaign-initiators.html or http://www.gold-action.de/campaign.html respectively.

From now on the campaign is official. Pls. feel free to report on it as appropriate via your media channels and connections. You can also selectively forward the info text below to further gold activists, journalists, entrepreneurs, multiplicators etc. with good reputations (!). If they send an “OK” to me I will include them in the list of main signators of the campaign together with the name of their respective institution.

Thanks and brgds,
Peter

German Precious Metal Society / DEG e.V.
Peter Boehringer

http://www.goldseitenblog.com/peter_boehringer/
http://www.taxpayers-europe.org
http://www.edelmetallgesellschaft.de
+49 89 2284080-2

Jim Sinclair’s Commentary

I thought you might be interested in the mention of myself in this Forbes article.

The Payments Network As Economic Weapon
3/27/2012 @ 9:30AM

“Extraordinary and unprecedented” is how SWIFT chief executive, Lázaro Campos, describes the March 17th move by Belgium-based SWIFT to discontinue service to 30 Iranian banks. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is a worldwide financial messaging network to facilitate the interbank transfer of funds. Now, it has become an economic weapon as well.

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SWIFT Headquarters in La Hulpe, Belgium

Campos emphasized the monetary blockade is “a direct result of international and multilateral action to intensify financial sanctions against Iran” and that SWIFT was forced by recent European Union sanctions designed to isolate Iran financially for its failure to demonstrate to Western nations that it is not developing nuclear weapons.

SWIFT has never expelled an institution in its 39-year history and in 2010 it processed 2 million messages for 19 Iranian member banks and 25 financial institutions. This is a vastly significant change in tactics and the repercussions are still unknown. Governments have long used the financial system as a method of tracking and blocking payment flow for targeted individuals and companies, but now it has been escalated to the nation-state level via the modern telecommunications network.

Mark Dubowitz is a sanctions specialist in Washington D.C. who advised U.S. lawmakers on the recent SWIFT legislation. He said the decision could limit the ability of Iran’s banks “to move billions of dollars in financial transactions and put immense pressure on Iran’s leaders to reconsider their policies” and that it underscores “the growing political isolation of Iran as it becomes the first country to be expelled from what is the financial equivalent of the United Nations.”

Highlighting and exposing the structural importance of centralized financial institutions that sit at the very top of the payments pyramid will hasten the trend to more decentralized and regional payment structures. Moreover, a single worldwide financial structure with near-absolute authority will begin to be seen as a vulnerability to many nations because they cannot always be expected to comply with U.S. and European Union directives. Now that the precedent has been set for evicting a country’s financial institutions from the prevailing global payments network, all nations will be rightly suspicious of that powerful weapon.

Trader and gold advocate Jim Sinclair explains to King World News how the U.S. government uses the international payments system as a weapon of war:

“We go to war, challenging the other side to do the same because whatever you use as a weapon, the other side is going to tend to use as a weapon.  The weapon that’s being used is the interbank transfer system, the way money is sent from bank to bank. We’ve already seen that Iran has been basically shut out of the SWIFT system and the SWIFT system is what this is all about.  The SWIFT system doesn’t take any money for the money that goes through it.  The SWIFT system is like the old telephone company.  What it does is charge for the use of its communication.

Believe me the SWIFT system works for the West.  It’s located in Belgium and you would think the US had no power on it.  It’s never discussed as being a US arm, but it is a US weapon. You’ve got to see now you’ve got this visual in front of you of a battlefield.  You’ve got Wall Street firing by lighting off something that looks like a cruise missile, but it’s got SWIFT written on the side.”

India is now told to cooperate or suffer the consequences implying tacitly that payment network sanctions are a real possibility. In a March 26th, 2012 audio interview, Sinclair goes on to forecast how the BRIC economies and other emerging trade areas around the world may soon look to establish their own SWIFT-type transfer systems so as not to get locked out of the international monetary system in the future. The backlash from this action will lead to the remonetization of gold around the world as barter and currency substitutes to the U.S. dollar gain in importance.

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