Dear CIGAs,
There is only one thing you need to know about gold: It is going to and through $3500.
We have witnessed market manipulation right here at these levels 9 times. This one will have no more success than the predecessors.
I know that respected minds in our camp feel accumulation is not the intention of the major gold banks.
Do you really believe these mammoth Bankster operations are really going to miss the great gold market’s best move over the shortest time span? I find that impossible to conceive of. They did not miss it in the 70s and will not now.
Gold is going to and through $3500.
Jim Sinclair’s Commentary
It is more than six and will be the lead story of the second recession in 2013. QE to infinity is the only tool powerful enough to kick this can.
6 U.S. Cities on Edge of a Fiscal Cliff
With Moody’s recent warnings and downgrades, these municipalities may follow the likes of Stockton and Central Falls into bankruptcy
By Dan Berman, AdvisorOne
August 14, 2012
Bankruptcy was once a last-ditch act reserved for companies and individuals. Declaring that creditors could not be paid carried a stigma that no one wanted to be associated with. And rarely would a municipality file for Chapter 9, the city version of Chapter 11. How times have changed.
Since 1981, 42 U.S. cities and towns have filed for bankruptcy. The pace has picked up with 10 in the last four years and many others teetering on the brink of insolvency. Recent cities taking the plunge include Mammoth Lakes and Stockton in California, and Central Falls, R.I.
The biggest issue is pension obligations to city workers coupled with a lack of revenue. The boom times of the 1980s and ’90s spurred the awarding of generous benefits to employees.
The Golden State has been hardest hit. The state’s budget woes have toppled governors and forced four cities since 2008 to declare bankruptcy, with more on the brink.
When cities go bankrupt, citizens find basic services slashed, fire and police protection cut to the bare minimum and taxes increased.
Jim Sinclair’s Commentary
Here is the latest from John Williams’ www.ShadowStats.com.
- July Retail Sales Gain Reflected Ongoing Seasonality Problems and Revisions; It Did Not Reflect Shifting Consumer Dynamics
- Potential Downside Revision Pressure on Second-Quarter GDP
- Stronger Core‰ PPI Inflation Continues to Show Long-Range Impact of Higher Oil Prices
www.ShadowStats.com
Jim Sinclair’s Commentary
The EU situation is not something with the comfort of time to resolve the pressures.
Pressure without definitive resolve will move into crisis mode. This situation cannot be tolerated by markets into the Fall.
European banks under substantial pressure: Deutsche Bank report
English.news.cn 2012-08-14 06:17:11
FRANKFURT, Aug. 13 (Xinhua) — European banks remain under substantial pressure on many operating fronts, a Deutsche Bank report said on Monday.
Revenue declines seem to become entrenched due to volatile capital markets and the low interest rate environment and initial improvements on the cost side have not nearly been able to compensate for those reduced earnings, said the report.
The report pointed out that the 20 largest banks in Europe reported weak results for the first half of this year. The banks have posted declines in net interest income, fee income and trading income.
The Deutsche Bank sees the further strengthening of capital levels of banks as one of the few bright spots. "In spite of the application of Basel 2.5 rules, Core Tier 1 ratios are now 11.2 percent on average," said the report.
Jim Sinclair’s Commentary
The purpose of the US Student Loan program is to avoid the major unemployment that would occur if students were in the employment pool.
All this fancy dancing hits the fan as student loans go out of sight in terms of amounts and loan failures.
Everything is manipulated to the point that is seems the Dutch story of Hans Brinker is the strategy of Washington and Europe with every challenge. A young boy in this story saved a dike by putting his fingers and toes into all the leaks.
Very soon the amount, frequency and size of the financial leaks we are dealing with will overwhelm all the kings men now trying to save it.
16 French police wounded in overnight clashes with youths
English.news.cn 2012-014 21:12:24
PARIS, Aug. 14 (Xinhua) — Sixteen police were injured during violent clashes with youths overnight in Amiens, a city in northern France, local media reported on Tuesday.
About 100 youths shot at the police, torched up to 20 cars, a leisure center and a nursery school, the news channel BFMTV reported. The violence was sparked by tension over spot police checks on residents, according to BFMTV.
The wounded police were injured by buckshot, mortar and throwing projectiles and damages amounted to over 1 million euros (1.23 million U.S. dollars), it added.
Police reinforcements were being dispatched and Interior Minister Manuel Valls was due to visit the Amiens suburb, which has already been identified as needing extra policing by the government.
French President Francois Hollande pledged "to mobilize all the resources to fight against the violence" and promised higher funds to improve security mainly in the country’s poor cities.
Jim Sinclair’s Commentary
If you do the crime you no longer do the time, but rather pay the fine.
That is as long as you are a member of the Good Ole Boys club or Yale’s Skull & Bones fraternity.
Standard Chartered, New York regulator reach $340 million settlement
By Karen Freifeld
NEW YORK | Tue Aug 14, 2012 2:25pm EDT
(Reuters) – Standard Chartered Plc has agreed to pay $340 million to settle allegations that it hid transactions with Iran from regulators, the New York Department of Financial Services said on Tuesday.
In addition to the civil penalty, the bank agreed to install a monitor for at least two years to evaluate the bank’s money-laundering risk controls in its New York branch, the department said in a statement.
The department also said it had adjourned a hearing set for Wednesday at which it had called on Standard Chartered to demonstrate why its New York state banking license should not be revoked.
"The parties have agreed that the conduct at issue involved transactions of at least $250 billion," the department said in a statement.
The bank did not immediately return a call seeking comment on the settlement.