In The News Today

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GATA’s Chris Powell on the Silver Manipulation Probe & the Fed Gold Audit!

Jim Sinclair’s Commentary

The following is the story of gold.

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Jim Sinclair’s Commentary

High frequency trading is electronic front running of retail bids and offers. Something that is illegal, but exchanges who are valued by volume simply love it.

Chart of the day, HFT edition
By Felix Salmon
August 6, 2012

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This astonishing GIF comes from Nanex, and shows the amount of high-frequency trading in the stock market from January 2007 to January 2012. (Which means that the Knightmare craziness of last week is not included.)

The various colors, as identified in the legend on the right, are all the different US stock exchanges. You might think there are only two stock exchanges in the US, but you’d be wrong: there are only two exchanges where stocks are listed. There are many, many more exchanges where stocks are traded.

What we see here is relatively low levels of high-frequency trading through all of 2007. Then, in 2008, a pattern starts to emerge: a big spike right at the close, at 4pm, which is soon mirrored by another spike at the open. This is the era of traders going off to play golf in the middle of the day, because nothing interesting happens except at the beginning and the end of the trading day. But it doesn’t last long.

By the end of 2008, odd spikes in trading activity show up in the middle of the day, and of course there’s a huge flurry of activity around the time of the financial crisis. And then, after that, things just become completely unpredictable. There’s still a morning spike for most of 2009, but even that goes away eventually, to be replaced with sheer noise. Sometimes, like at the end of 2010, high-frequency trading activity is very low. At other times, like at the end of 2011, it’s incredibly high. Intraday spikes can happen at any time of day, and volumes can surge and fall back in pretty much random fashion.

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Jim Sinclair’s Commentary

If you want to protect yourself from your clearing agent and brokers, you must be proactive. You have to be as stubborn as my Sadie, Daisy and Ezra are. Only then will you succeed.

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Jim Sinclair’s Commentary

The Senate has not spoken yet so the future of this initiative depends on that outcome.

As a minimum, this would add pressure to the issue.

Bernanke’s Nightmare Audit Pushed For Romney’s Platform
By Julie Hirschfeld Davis – Aug 7, 2012 8:00 PM ET

Federal Reserve Chairman Ben Bernanke calls it his “nightmare scenario.” One of Mitt Romney’s top economic advisers called it “trouble.”

Yet as they look to their national convention starting in Tampa on Aug. 27, Republicans are considering including a plank in their party platform calling for a full audit of the central bank.

Prodded by the failed primary bid of longtime Fed critic Ron Paul — and the grassroots enthusiasm the Texas congressman’s cause inspired among bail-out weary Tea Party activists and small government advocates — Republicans are entertaining a prospect that has long made them and some of their financial supporters cringe.

Paul, in an interview, warned that if Romney’s backers resist the effort, it could result in a politically distracting and messy fight in front of the national media. “It’s good economics and it’s good legislation, but it’s also good politics, because 80 percent of the American people agree with it,” Paul said. If Republican leaders “exclude it, I would think some of my supporters would be annoyed and feel strongly enough to take it to the floor under the rules.”

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Jim Sinclair’s Commentary

Before you pay off your mortgage you might like to check who you have been making payments to actually owns your mortgage.

If a third party shows up with the right papers demanding all the funds, you are royally screwed.

Fighting Fraudclosure; Nevada goes after Robo-signers

Click here to watch the video…

Jim Sinclair’s Commentary

If 20% of the product somehow finds its way out of China, there is a simple solution. Stop mining 20% and apply harsh punishments to the black market banksters.

China cuts mines vital to tech industry
By Kevin Voigt, CNN
updated 7:30 AM EDT, Wed August 8, 2012

Hong Kong (CNN) — China will cut production of rare earths — minerals vital for technology makers worldwide — by 20%, a move that threatens to inflame trade tensions between Beijing and Washington.

Rare earths are 17 minerals with magnetic and conductive properties that are used in most of today’s electronic devices, including flat-screen televisions, smart phones, hybrid cars and weapons. Nearly all of the world’s supply of rare earths comes from China.

China changed production rules, which will close down one-third of the nation’s 23 mines and about half of 99 smelting companies, Jia Yinsong, director of the ministry’s rare earths office, told China Daily Wednesday.

China implemented the rules to improve environmental conditions and help consolidate the industry, officials said. The new regulations boost the minimum annual output at mines to 20,000 metric tons and 2,000 tons per year for smelting operation — a move which will weed out smaller operations.

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Jim Sinclair’s Commentary

I do not believe that Rosenberg is a voting member so you can be sure another non-voting member will take the other side.

The answer is QE is the only tool that creates discretionary funds in amounts that can go to infinity in the care of the Fed and the Treasury.

If the economic downward spiral we are on the verge of is larger than anticipated by the establishment, QE is the only tool that works.

Fed’s Rosengren makes case for sizable QE3
Focus on mortgage-backed securities, Fisher calls it a mistake
By Greg Robb, MarketWatch

WASHINGTON (MarketWatch) — The U.S. economy is “only treading water,” and the U.S. central bank needs to launch a sizable and open-ended asset-purchase program to spur demand, a Federal Reserve official said Tuesday.

“The GDP reports have been disappointing, [and] my expectation is the second half of the year won’t be much better,” Boston Fed President Eric Rosengren said in a sit-down interview with CNBC that followed an interview Monday with the Wall Street Journal.

Boston Fed President Eric Rosengren speaks during the Sasin Bangkok Forum July 9, 2012.

“If you are treading water, even if you are a good swimmer, at some point you need to get to land,” Rosengren said.

Rosengren, who is not a voting member of the Federal Open Market Committee this year, had said he was open to more easing earlier this summer. Read about Rosengren and others on the Fed who were moving closer to QE3 last month.

But his call for “a much more accommodative policy” shows that his worries about the recovery have grown.

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