In The News Today

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Jim Sinclair’s Commentary

This is activity that is criminal in its failure to act in the best interest of future generations.

You think Greece, Portugal and Italy have problems? You think that Greece is alone in criminal acts hiding their debt with OTC derivatives? If so, you are a victim of MSM MOPE.

The US has problems looming as large and larger than Euroland. QE must and will go to infinity regardless of how many denials come out of the doer, the Fed.

Surprise! You owe another $54 billion
A new report forces the question: How could Illinois pols do this to taxpayers
April 8, 2012

"Previous legislators and previous governors even awarded taxpayer funded health insurance benefits to themselves and 82,000 retirees, where 90 percent of them pay nothing on their insurance premiums. This lack of fiscal accountability has cost us dearly today."
—Gov. Pat Quinn, Feb. 22, 2012

"All told, state government is on pace to spend nearly $1 billion on retiree health care benefits in fiscal year 2013, more than double what it spent in 2003. Worse yet, these liabilities are growing more than twice as fast as tax revenues."
—Illinois Policy Institute, April 9, 2012

The state of Illinois admits to $83 billion in pension underfunding, a staggering weight on today’s and tomorrow’s taxpayers. Add to that the as yet uncalculated billions in unfunded pension obligations for city, county and other local governments. During a Tribune forum Wednesday, Mayor Rahm Emanuel explained how that overhang — some estimates run far higher — deters businesses from locating in Chicago: Companies don’t want to buy shares in a phenomenal tax burden that will unfold over decades.

One nice thing about pension obligations: When you know the number of employees and their ages, the actuarial estimates start falling into place. The mystery is the investment return a pension fund will earn over time.

A second, often overlooked time bomb merrily ticking for governments nationwide is the cost of health insurance for all those retirees. That number, too, is hard to gauge, because health care costs — like future investment returns — are unknowable. Yet governments typically don’t put aside money for future health care, as they do for future pensions. The culture is to pay-as-you-go.

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Jim Sinclair’s Commentary

The following renders all manipulation of gold on the downside as destined to fail. The following guarantees that all manipulation of gold on the upside must succeed.

There will be another Jim Sinclair in this gold market that has both the money, balls and knowledge to bury the sociopaths at the gold banks All arguments to the contrary are the ranting of imbeciles without market experience of half a century, especially the one from the expert that dances around the stage blowing a horn and hitting a bell to tell you gold is going to hell.

It is not!

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"De prijs van dit edelmetaal wordt kunstamtig laag gehouden do"or de zakenbank JP Morgan Chase."

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Jim Sinclair’s Commentary

This will present a challenge to the use of the SWIFT system as a weapon against allies over Iran.

India offers tax breaks on Iran exports despite U.S. pressure
By Manoj Kumar
NEW DELHI | Thu Apr 5, 2012 8:19am EDT

(Reuters) – The Indian government will offer tax incentives to exporters for sales in rupees to Iran, in the latest effort by New Delhi to bolster exports in return for oil from the Islamic Republic squeezed by Western sanctions, a finance ministry official said.

Following U.S. and European Union sanctions against Tehran over its nuclear program, New Delhi is under pressure to cut oil imports from its second-biggest supplier, which provides about 12 percent of its oil needs.

India has publicly taken a stand alongside other rapidly emerging countries, including China and Brazil, that it would follow only U.N. sanctions, a position criticized by conservatives in Washington.

To skirt the sanctions, India this year decided to buy oil through a mechanism that lets refiners deposit rupees, which are not freely traded on global markets, for about 45 percent of Iranian crude purchases in an account at India’s UCO Bank.

India sent a trade delegation in March to Iran to boost merchandise exports as a way of securing oil in return. But the delegation came back empty handed, and Indian exporters have complained of difficulties in trading through the new mechanism.

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Jim Sinclair’s Commentary

There may be 35 Euro summit meetings and denials by the score, but whatever is required will be provided with QE to infinity.

Portugal’s domestic banks tap ECB for record amounts of funding

Bank of Portugal says domestic banks’ use of European Central Bank’s facilities rose to a record €56.3bn in March

The reliance of eurozone banks on the European Central Bank was demonstrated on Monday when Portugal revealed that its domestic banks were tapping the central bank for record amounts of funding.

The Bank of Portugal said the use by domestic banks for the various facilities available from the ECB rose to €56.3bn in March – up from €47.5bn in February and greater than the previous record level of €49.1bn in August 2010.

Bailed out by the EU and International Monetary Fund in April 2011 for €78bn, Portugal has €12bn earmarked for bolstering its banks’ capital positions if necessary in the months ahead.

The plight of Portugal’s banks was revealed following the cash injection by the ECB in February when the central bank lent €529bn to 800 banks across the eurozone through its long-term refinancing operation (LTRO).

Portuguese banks were among those frozen out from the wholesale funding markets – where banks borrow from each other or professional investors – during the height of the eurozone crisis and as a result are among a number in the eurozone that utilise ECB funding.

"I think it’s natural and reasonable for banks to have taken advantage of these funds under the circumstances, especially after the ECB relaxed some collateral requirements before February’s injection," Teresa Gil Pinheiro, chief economist at Banco BPI in Lisbon, told Reuters.

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