In The News Today

Posted at 6:58 PM (CST) by & filed under In The News.

My Dear Friends,

The future is US dollar Bloc down, Euro Bloc sideways, Bric Bloc up.
This means the absolute end of dollar dominance. Utilizing the SWIFT system as a weapon caused it.

It began today.

Jim

 

Jim Sinclair’s Commentary

It depends on who collects the information.

Technology Comforting or Creepy? Google to Provide a Monthly Report of What It Knows About You
Posted on March 29, 2012 at 9:41am by Liz Klimas

We all know that online tracking is increasing but to what extent is your activity being watched? In an effort to be more transparent, Google is helping you “step back and take stock of what you’re doing online” with a new optional feature called Account Activity.

If you sign-up for the service, Account Activity will provide you with a monthly report of all your online activities using Google products. Here‘s an example from the company’s Public Policy blog post on the new feature:

For example, my most recent Account Activity report told me that I sent 5 percent more email than the previous month and received 3 percent more. An Italian hotel was my top Gmail contact for the month. I conducted 12 percent more Google searches than in the previous month, and my top queries reflected the vacation I was planning: [rome] and [hotel].

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What an activity report will look like. (Image: Google’s Public Policy Blog)

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Jim Sinclair’s Commentary

Release of any strategic reserve only has a temporary market benefit. It has always been that way. It will always remain that way.

“The only successful manipulation of any market by anyone, even government, must be in the direction the market wishes to go anyway.” That is Livermore/Seligman wisdom.

Someday I will share with you how to defeat a short raid according to Livermore/Seligman. This was never written in any book.

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Jim Sinclair’s Commentary

A man who the gold gang helped get out of the can with thousands of letters on his behalf is talking trash about the dedication of gold investors.

I firmly believe he is dead wrong, and shooting himself directly in the foot. I knew him in the 70s and I guess nothing really ever changes.

Respect and gratitude is not the long suit of many. Have no fear because we are here.

Regards,
Jim

 

Jim Sinclair’s Commentary

This is called debt monetization in case you forgot.

WSJ: Fed Buying 61 Percent of US Debt
Wednesday, 28 Mar 2012 11:08 AM
By Julie Crawshaw and Forrest Jones

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.

“Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis,” Goodman writes.

Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.”

“This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.”

The U.S. government is growing increasingly more dependent on borrowing to finance itself, with net issuance of Treasury securities hitting 8.6 percent of gross domestic product (GDP) on average per annum, more than double levels before the crisis.

Fed intervention in the government debt market makes demand for Treasury bonds appear higher than it really is, as foreign creditors and other investors have fled U.S. government debt instruments and are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficits.

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Jim Sinclair’s Commentary

The internationalization of the Yuan goes unnoticed by dollar managers and investors.

China’s African Odyssey
March 28, 2012, 8:54 a.m. ET

Roughly one million Chinese nationals are working or doing business in Africa, from Egypt’s Mediterranean shore to South Africa’s Cape of Good Hope.

Theirs are the faces behind China’s soaring direct investment in Africa— which, according to China’s Ministry of Commerce—rose 87% to $1.1 billion during the first three quarters last year compared to the same period 2010. China’s Ministry of Commerce said the value of all China-Africa trade between January and September last year topped $122 billion—a record amount that was equal to total two-way trade for all 2010.

Central to China’s success and ambitions is South Africa, where mainland companies run textile mills and mining operations. Industrial & Commercial Bank of China Ltd. owns 20% of South Africa’s Standard Bank Group Ltd. Moreover, South Africa is often a starting point for Chinese businesses that plan to expand into less-developed countries to the north.

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Jim Sinclair’s Commentary

Better crank up the SWIFT system Phil, some more emerging economies are getting feisty.

BRICS summit: Emerging economies condemn military threats against Iran, Syria
By Rama Lakshmi, Thursday, March 29, 8:50 AM

NEW DELHI — Leaders of five of the world’s fastest-growing economies called Thursday for an end to the rhetoric of military action against Iran and Syria, as they met in India to develop measures to boost mutual trade in their local currencies.

The leaders of the coalition known as BRICS — Brazil, Russia, India, China and South Africa — said unilateral sanctions against Iran would affect their trade and economic growth.

“We must avoid political disruptions that create volatilities in global energy markets and affect trade flows,” Indian Prime Minister Manmohan Singh said. “We agreed that lasting solution to the problems in Syria and Iran can only be found through dialogue.”

Brazil’s president, Dilma Rousseff, echoed Singh’s concerns when she said that she does not “support any embargo policy” and “escalation of pro-violence rhetoric.” She called for “opening a room for compromise solution” on Iran.

The statements come at a time when Israeli Prime Minister Benjamin Netanyahu is warning of a possible military strike against Iran’s nuclear facilities. In Syria, a violent crackdown on an opposition uprising by the government of President Bashar al-Assad has killed about 9,000 people, according to U.N. estimates.

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Jim Sinclair’s Commentary

I wonder if the West will have a SWIFT response

BRICS to change world economy

“The BRICS countries’ leaders are preparing for their annual meeting. These countries make up 42 percent of the world’s population and a quarter of its landmass. They are also responsible for 20 percent of the Global GDP and

own a whopping 75 percent of the foreign reserve worldwide. In these tough
times for world economics these countries are trying to find a solution for the situation. RT’s Priya Sridhar gives us a sneak peak of the summit from India.”

 

Jim Sinclair’s Commentary

Marshall Law in peace time under presidential order is now in place as a facility to be used.

Things in place tend to get used.

Zakaria: Incarceration nation
By Fareed Zakaria

Editor’s Note: The following is an excerpt of Fareed Zakaria’s column in this week’s TIME Magazine, which you can read in full here, behind a paywall.

“Mass incarceration on a scale almost unexampled in human history is a fundamental fact of our country today,” writes the New Yorker’s Adam Gopnik. “Over all, there are now more people under ‘correctional supervision’ in America – more than 6 million – than were in the Gulag Archipelago under Stalin at its height.”

Is this hyperbole? Here are the facts. The U.S. has 760 prisoners per 100,000 citizens. That’s not just many more than in most other developed countries but seven to 10 times as many. Japan has 63 per 100,000, Germany has 90, France has 96, South Korea has 97, and ­Britain – with a rate among the ­highest – has 153….

This wide gap between the U.S. and the rest of the world is relatively recent. In 1980 the U.S.’s prison population was about 150 per 100,000 adults. It has more than quadrupled since then. So something has happened in the past 30 years to push millions of Americans into prison.

That something, of course, is the war on drugs. Drug convictions went from 15 inmates per 100,000 adults in 1980 to 148 in 1996, an almost tenfold increase. More than half of America’s federal inmates today are in prison on drug convictions. In 2009 alone, 1.66 million Americans were arrested on drug charges, more than were arrested on assault or larceny charges. And 4 of 5 of those arrests were simply for possession….

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Repatriate our Gold!

Gold has been natural money for thousands of years. It has been used throughout history either as physical coinage or as solid cornerstone for stable paper currencies. Up until 1913, most Western societies prospered and grew steadily and naturally under a monetary standard with at least partial gold backing. The gradual abandonment of the gold backing throughout the 20th century and the ultimate delinkage of all currencies from gold in 1971 is the fundamental cause of the ongoing inflation (the US-Dollar has lost 98% of its purchasing power since 1913) as well as the main reason for the global financial crises since 2007. We believe it is essential to re-introduce a (partial) goldbacking for the world´s monetary system. And in order to back future national currencies, the gold needs to be physically present in the respective country. Gold needs to be re-monetized – at least on a voluntary basis as a means of payment the people are free to choose anytime.

We therefore campaign for …

… independent, full, neutral and physical audits of the gold hoards of the world´s central banks

… the repatriation of all central bank gold; i.e. the physical transport into the respective ownership countries

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