In The News Today

Posted at 3:29 PM (CST) by & filed under In The News.

Dear CIGAs,

If you really think the Banksters will enjoy their ill gotten gains, consider the following:

The Lord grants both protection and punishment – for, how can He be the Lord, if He does not insist on strict accounting and strict obedience?
–SSB, 20 Feb 1964.

Battle is the most magnificent competition in which a human being can indulge. It brings out all that is best; it removes all that is base. All men are afraid in battle. The coward is the one who lets his fear overcome his sense of duty. Duty is the essence of manhood. 
–George S. Patton

 

Jim Sinclair’s Commentary

John guides us. Those who don’t yet should consider paying him.

- Little Changed for the Year, 2012 U.S. Merchandise Trade Deficit Still Reflected Cumulative Loss of 6.6 Million Jobs
- December Trade Reporting Suggested Upside Contribution to First Revision of Fourth-Quarter GDP
- New ShadowStats Graph of Consumer Credit Outstanding

No. 501: December 2012 and Annual Trade Balance, Consumer Credit
Web-page: http://www.shadowstats.com

John Williams: How to Survive the Illusion of Recovery
Source: JT Long of The Gold Report  (2/8/13)

There is no economic recovery, and there are no signs that a recovery is coming, says Shadowstats.com author John Williams. In this Gold Report interview, he blames mal-adjusted inflation statistics for creating an alternate reality that overestimates economic activity in a way that is unsustainable. Williams warns that eventually the painful truth will be so difficult that even government manipulation won’t be able to deny it and that is when hyperinflation will take its toll on those who have not taken his advice for preserving purchasing power and securing wealth.

The Gold Report: The last few years have been very volatile for investors, particularly resource equity investors. The mainstream media, citing government statistics of improved employment rates and housing starts, called an end to the recession and is forecasting a slow recovery in 2013. You are looking at the same indicators, but coming up with different numbers. Let’s start with the unemployment rate. What are you seeing and why is it different than what we are hearing everywhere else?

John Williams: I contend that the economy effectively hit bottom in June 2009, followed by a period of somewhat volatile stagnation, and it is beginning to turn down anew. There never was a recovery and no economic data shows the type of recovery that the official gross domestic product (GDP) report is showing. The GDP shows levels of activity now that are above where the economy was before the recession. It’s been above that level now for more than a year. No other major economic series has shown a full recovery, shy of perhaps inflation-adjusted retail sales, which is due to a problem with the inflation rate used to adjust the series. Generally, the illusion of recovery has resulted from the government’s use of understated inflation.

TGR: Are you predicting a double-dip recession?

JW: It’s more like the pattern a fellow would take going off a ski jump. A plunge and then moving forward, maybe up a little bit and then plunging anew. The economy officially will be recognized as a double-dip recession at some point, but in reality it’s all part of the ongoing economic crisis that we’ve seen for the last five or six years.

TGR: One of the indicators people look at to determine the existence of a recession is the unemployment rate. Why you are seeing a different number for that than some of the officially announced numbers?

JW: Unemployment is a matter of how you define it. The government has six measures of unemployment. The headline number is the third level of unemployment (U3). That measures people actively seeking work in the last four weeks. That doesn’t mean just reading newspaper want ads; it is people mailing resumes and doing interviews. That number was reported at 7.9% for January, but that’s not the common experience. The broadest measure that the government has is U6. That includes the people defined as unemployed in U3 plus what they call "discouraged workers" and those who are working part-time for economic reasons, people who are underemployed. U6 was at 14.4% in January.

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Jim Sinclair’s Commentary

Generators work until they don’t. I will do everything possible to post over the weekend, however Connecticut is being hit very hard right now.

New York Governor Declares State of Emergency Over Winter Storm
Friday, February 8, 2013 5:01 PM EST

Gov. Andrew M. Cuomo of New York declared a state of emergency as a winter storm descended on the Northeast on Friday evening. But at a news conference, he said that while the storm was expected to cause problems, including widespread power failures, the people of the state had recently lived through much worse.

“This is a serious, severe storm but we just went through some really terrible storms with Hurricane Sandy,” he said. “We are not anticipating anything like that.”

Mr. Cuomo announced that area airports would stop operations Friday night and said there were already 3,000 people without power.

In Massachusetts, Gov. Deval Patrick took the unusual step of banning all cars from the roads in the state starting at 4 p.m. The governor of Connecticut, Dannel P. Malloy, also ordered all but emergency vehicles off the state’s highways.

The New York Times will be providing continuous updates on the storm.

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Jim Sinclair’s Commentary

This is a violation of trust, a sin against society and a capital crime. This is intolerable.

Societies in history have exploded over just such things. This is dangerous beyond words. The Founding Fathers would have issued a call to arms. I would have answered the call. I know these people and they are the scum worse than their actions. How I am related to them is an enigma.

The fact I called some of them friends and brothers amazes me in their defaulted character. They are all the spawn of Hitler and have destroyed all we hold dear. Now they are going to steal your gold leaving you financially helpless.

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Jim Sinclair’s Commentary

The Venezuelan Bolivar is not exactly a very important currency in the great scheme, but this is currency war at its best.

BREAKING: Venezuela Devalues Its Currency
Matthew Boesler | 4 minutes ago | 85 |

Venezuela just undertook a massive currency devaluation, repegging the bolivar to a rate of 6.3 per U.S. dollar from a previous exchange rate of 4.3 bolivars per dollar, reports Bloomberg.

The government also announced that it would shutter the a Venezuelan currency exchange system known as SITME.

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Jim Sinclair’s Commentary

You can control your own worst enemy

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Jim Sinclair’s Commentary

Courage is not common or easy. The Duke said courage was saddling up and riding out when you were scared to death.

This manufactured gold reaction with the help of some Trojan Horse gold writers is for the purpose of stealing your position in shares and bullion at highly discounted prices, in my opinion, never to be seen again.

In the video Braveheart give you the encouragement you need to hear.

Hold, Hold, Hooooollllddddddd!!!!

 

Jim Sinclair’s Commentary

In answer to many question concerning last evening’s video of the appeal of King Henry the 5th, the British forces, against all odds, won the battle. That is exactly what we will have done very soon in this gold battle.

Battle of Agincourt
From Wikipedia, the free encyclopedia

The Battle of Agincourt[a] was a major English victory in the Hundred Years’ War. The battle occurred on Friday, 25 October 1415 (Saint Crispin’s Day), near modern-day Azincourt, in northern France.[5][b] Henry V’s victory at Agincourt, against a numerically superior French army, crippled France and started a new period in the war, during which, first, Henry married the French king’s daughter and, second, his son, Henry VI, was made heir to the throne of France (although Henry VI later failed to capitalise on his father’s battlefield success).

Henry V led his troops into battle and participated in hand-to-hand fighting. The French king of the time, Charles VI, did not command the French army himself as he suffered from severe, repeating illnesses and moderate mental incapacitation. Instead, the French were commanded by Constable Charles d’Albret and various prominent French noblemen of the Armagnac party.

The battle is notable for the use of the English longbow, which Henry used in very large numbers, with English and Welsh archers forming most of his army. The battle is also the centrepiece of the play Henry V, by William Shakespeare.

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Jim Sinclair’s Commentary

Please note in this report a sale of 1.2 billion in non monetary gold. That has a world class smell to it.

Rather than speculating, I will get down to what this is really all about.

"US exports increased $8.6 billion in December, boosted by sales of industrial supplies, including a $1.2 billion rise of non-monetary gold."

Economy likely grew in fourth quarter
By Jason Lange

WASHINGTON (Reuters) – The economy likely expanded slightly in the fourth quarter as higher exports and a slump in oil imports narrowed the trade gap, suggesting a surprise drop in economic output reported last week was overstated.

America’s trade deficit shrank in December to its narrowest point in nearly three years in December, the Commerce Department said on Friday.

That suggests trade added to economic growth in the final three months of last year, rather than holding it back as the government said last week when it estimated gross domestic product fell at a 0.1 percent annual rate.

The GDP report had shocked economists, who had been looking for the economy to expand at a 1.1 percent pace.

"Trade data for December paint a reassuring and encouraging picture of the U.S. economy at the end of last year," said Chris Williamson, chief economist at Markit.

A separate report from the Commerce Department showed wholesale inventories unexpectedly declined in December.

While the decline in inventories would subtract from GDP, economists said the drag was not big enough to offset the positive impact of December’s trade performance.

Taken together, the reports pointed to an economy that was still growing at the end of the year, and was poised to grow at a quicker pace in early 2013 as firms rebuild inventories to keep up with demand.

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Jim Sinclair’s Commentary

The Guardian reporter seems surprised?

Greed and dishonesty laid bare as scale of Libor rigging revealed
RBS fined £390m for manipulating rate, with five more financial firms under investigation
Jill Treanor, City editor
The Guardian, Wednesday 6 February 2013 15.13 EST

More than 10 City workers are under investigation by the Financial Services Authority for rigging Libor, a top regulator said after Royal Bank of Scotland was fined £390m for manipulating the key benchmark rate.

Tracey McDermott, the FSA’s enforcement director, said some bankers had decided "the rules did not apply to them" and that another five financial firms, including banks and inter-dealer brokers, remained under investigation as part of the on-going inquiry into the rigging of Libor, which is used to set the price on £300 trillion of financial products.

"I can assure you we are looking at individuals," she said as the FSA and US regulators, the Commodity Futures Trading Commission (CFTC) and the department of justice, published documents showing the widespread rigging of Libor at RBS.

A series of electronic exchanges linked RBS traders to those at other banks, particularly Swiss bank UBS, who submitted rates to the Libor panel. There was also unethical contact involving inter-dealer brokers who act as intermediaries, with promises of "sushi rolls" and "making love" in return for rigging Libor submissions.

"It’s just amazing how Libor fixing can make you that much money … it’s a cartel now in London," wrote one RBS trader specialising in yen Libor in an instant message sent in August 2007.

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