My Dear Friends,
You can be absolutely sure the 7 touches capping sells at $1775 were for the purpose of accumulation.
Our newly created trillionaire banksters will be long of cash gold in their own depositories.
Gold is going to $3500 and beyond much, much, much faster than it took to get to go above $1900.
If you think the major banksters are either short or flat on this gold move, you are seriously bonkers.
Regards,
Jim
Gold Seen Luring Wealthy as Central Bankers Expand Stimulus
By Glenys Sim – Sep 21, 2012 4:00 PM GMT
More high-net-worth individuals are seeking to buy gold to protect their wealth from the risk of rising inflation after central banks boosted stimulus, according to Deutsche Bank AG’s asset and wealth-management unit.
“Gold has historically been considered to be a store of value and an inflation hedge and increasingly it is being utilized as a monetary instrument,” said Mark Smallwood, head of Asia-Pacific wealth-management solutions. “There is a growing interest among our clients to gain exposure,” he said, with an increased preference for physical holdings.
Gold is in the 12th year of a bull run, 13.5 percent higher this year, as investors seek to hedge against weaker currencies and the threat of rising consumer prices. Holdings in gold- backed exchange-traded products expanded to an all-time high yesterday, and Bank of America Corp. and Deutsche Bank are among banks forecasting that the price will rally to a record.
“With the movements by the central banks globally in the last few weeks, there is considerable investor concern as to the long-term effects of the liquidity infusions,” Smallwood said by phone from Guilin, China yesterday. “As a result of that, private clients are concerned about the possible future effects of inflation and the means of hedging that risk.”
Immediate-delivery gold reached $1,779.50 an ounce on Sept. 19, the highest price since February, after central banks took further steps to bolster their economies hurt by Europe’s debt crisis. The metal, which reached a record $1,921.15 on Sept. 6, 2011, gained 0.4 percent to $1,774.85 at 5:30 p.m. in Singapore.
Jim Sinclair’s Commentary
This article from the Wall Street Journal contains the seeds of the end game. Read how much of Federal borrowing is being facilitated by the Federal Reserve itself.
The Fed itself is headed for insolvency. The US dollar is the common share of the USA. The US dollar’s long term chart makes Enron look like a blue chip.
The recent rally, only a mirror image of the euro, was pitiful in the context of even medium term.
The Magnitude of the Mess We’re In
The next Treasury secretary will confront problems so daunting that even Alexander Hamilton would have trouble preserving the full faith and credit of the United States.
By George P. Shultz, Michael J. Boskin, John F. Cogan, Allan H. Meltzer and John B. Taylor
Sometimes a few facts tell important stories. The American economy now is full of facts that tell stories that you really don’t want, but need, to hear.
Did you know that annual spending by the federal government now exceeds the 2007 level by about $1 trillion? With a slow economy, revenues are little changed. The result is an unprecedented string of federal budget deficits, $1.4 trillion in 2009, $1.3 trillion in 2010, $1.3 trillion in 2011, and another $1.2 trillion on the way this year. The four-year increase in borrowing amounts to $55,000 per U.S. household.
The amount of debt is one thing. The burden of interest payments is another. The Treasury now has a preponderance of its debt issued in very short-term durations, to take advantage of low short-term interest rates. It must frequently refinance this debt which, when added to the current deficit, means Treasury must raise $4 trillion this year alone. So the debt burden will explode when interest rates go up.
The government has to get the money to finance its spending by taxing or borrowing. While it might be tempting to conclude that we can just tax upper-income people, did you know that the U.S. income tax system is already very progressive? The top 1% pay 37% of all income taxes and 50% pay none.
Did you know that, during the last fiscal year, around three-quarters of the deficit was financed by the Federal Reserve? Foreign governments accounted for most of the rest, as American citizens’ and institutions’ purchases and sales netted to about zero. The Fed now owns one in six dollars of the national debt, the largest percentage of GDP in history, larger than even at the end of World War II.
The Fed has effectively replaced the entire interbank money market and large segments of other markets with itself. It determines the interest rate by declaring what it will pay on reserve balances at the Fed without regard for the supply and demand of money. By replacing large decentralized markets with centralized control by a few government officials, the Fed is distorting incentives and interfering with price discovery with unintended economic consequences.
Jim Sinclair’s Commentary
Whatever is required, $2 or $6 trillion or more, will be provided here and there and everywhere.
Euro zone to boost bailout fund firepower to 2 trillion euros: report
BERLIN | Sun Sep 23, 2012 1:00pm EDT
(Reuters) – Euro zone states are preparing to allow the bloc’s permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than 2 trillion euros and rescue big countries if necessary, Der Spiegel said on Sunday.
The weekly news magazine said that the European Stability Mechanism (ESM) would have two instruments like its predecessor, the European Financial Stability Facility (EFSF), that would only allow public money to be used for particularly risky transactions such as buying Spanish bonds, while private investors would provide the rest.
It had always been expected that the ESM, which is expected to come into force on October 8 with a capacity of 500 billion euros, would have the same leverage ability as the EFSF and euro zone finance ministers reiterated this at their meeting in Cyprus earlier this month.
If the ESM gets approval to use the same leverage techniques as the EFSF, it would have a lending power of around 2 trillion euros without countries having to contribute any more capital to the fund.
But these leverage options have not been approved by all euro zone member states and Finland is especially reluctant to agree to them.
Jim Sinclair’s Commentary
A gold standard of a new variety already explained to you multiple times will occur. However, a gold standard does not fix a broken system.
What gold standards do after the collapse is to guarantee the then fixed system stays fixed for generations.
Germany Eyes Gold Standard
Editorial of The New York Sun | September 22, 2012
It would be too much to say that the government of Free Germany, as we are still wont to call it, is taking steps toward the gold standard. After all, no committee beckons in the Bundestag. The government is entangled with Spain and Greece and the scrip known as the Euro. The newspapers are mum. It would not be too much, though, to say that the latest report from the Deutsche Bank, the country’s leading private bank, is a newsworthy document, even if it will slide past up the bien pensantsalons of Europe.
![clip_image001[5]](http://www.nysun.com/pics/8926.jpg "clip_image001[5]")
Deutsche Bank
GERMANY’S GOLD: Is the second-largest gold-holder in a position to lead?
Deutsche Bank’s report is “Gold: Adjusting for Zero.” It reckons we’re in a situation that is “Zero for growth, yield, velocity and confidence.” It says: “We believe there are nearly zero real options available to global policy-makers. The world needs growth and is willing to go to extraordinary lengths to get it.” It forecasts bluntly that the value of the dollar will plummet in the first half of 2013 to less than a 2,000th of an ounce of gold. It reckons “the growth in supply of fiat currencies such as the USD will remain an important driver.”
That’s just for openers. The report then goes on to assert that gold is misunderstood and doesn’t really belong in the basket of “commodities” used by so many economists. Gold is money, according to the Deutsche Bank. Says it: “We would go further however, and argue that gold could be characterised as ‘good’ money as opposed to ‘bad’ money which would be represented by many of today’s fiat currencies.” It refers to Gresham’s Law and suggests “the undervalued money (good) will leave the country or disappear from circulation into hoards, while the overvalued money (bad) will flood into circulation.” …
Jim Sinclair’s Commentary
Seeds of meaningful discount in the 52nd state of the USA.
Dozens of Saudi judges resign in protest at regime pressure
At least 50 Saudi judges have resigned in protest at the pressure exerted on them by the Riyadh regime to sentence political activists, Press TV reports.
The judges said in a statement that they made the decision in protest at the regime pressure.
According to Human Rights Watch, the Saudi regime “routinely represses expression critical of the government."
The Arabic Network for Human Rights Information has called on regional and international organizations to take action against Saudi Arabia’s crackdown on rights activists.
Since February 2011, protesters have held demonstrations on an almost regular basis in Saudi Arabia, mainly in Qatif and Awamiyah in Eastern Province, primarily calling for the release of all political prisoners, freedom of expression and assembly, as well as an end to widespread discrimination.
However, the demonstrations have turned into protests against the repressive Al Saud regime, especially since November 2011, when Saudi security forces killed five protesters and injured many others in the province.
Jim Sinclair’s Commentary
It runs in the family. My daughter’s horse and Harry, the pig in Africa.
Jim Sinclair’s Commentary
Relaxation is healing.
