In The News Today

Posted at 12:11 PM (CST) by & filed under In The News.

Do not behave foolishly! Hold fast to noble ideals. Do not try to bring down the Almighty to your limited vision. Rise up, strengthen your detachment and establish yourself in discrimination, then your goal is brought nearer.
–SSB, Feb 25, 1964.

clip_image002

 

Jim Sinclair’s Commentary

QE to infinity and gold to and beyond $3500. Don’t let the Banksters have any of your gold or gold shares.

Stop watching now and wait until the end of February to look again.

Housing Starts Fall 8.5% In January

Housing starts fell 8.5% in January after surging 15.7% the month before, the Commerce Department said Wednesday.

The government’s report suggests home builders began work at a slower pace in 2013 than expected though the level was still the third highest since 2008. And new-home starts are likely to pick up in coming months. The number of houses built in 2012 was the most in four years.

The number disappointed analysts who had been expecting January to add on to several months of evidence the housing market rebound is gaining momentum.

The Commerce report said new-home construction totaled a seasonally adjusted annual rate of 890,000 last month after jumping to an annual rate of 973,000 in December, the best month for new-home starts since June 2008.

The number of new permits for to build a home did show improvement. They totaled 925,000 at an annual rate last month, up 1.8% from December’s 909,000, which had been the highest total for permits since mid-2008.

The pace of construction of single-family homes rose 0.8% in January, while apartment construction’s pace, which is more volatile, dropped 24.1%.

More…

Jim Sinclair’s Commentary

For those put to sleep by gold bearishness of MSM. MOPE and manipulation, the 3Ms, the following is recommended.

 

Jim Sinclair’s Commentary

This really says it all and can be summed up as "Screw the Shorts."

Invictus
by William Ernest Henley

“Out of the night that covers me,
Black as the Pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.

In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeonings of chance
My head is bloody, but unbowed.

Beyond this place of wrath and tears
Looms but the Horror of the shade,
And yet the menace of the years
Finds, and shall find, me unafraid.
It matters not how strait the gate,
How charged with punishments the scroll.
I am the master of my fate:
I am the captain of my soul”.

Jim Sinclair’s Commentary

This trend in motion remains in motion.

China overtakes US to become largest trading country in world
By ANI | ANI – Mon 11 Feb, 2013

London, Feb. 11 (ANI): China is now the largest trading country in the world in terms of imports and exports, after overtaking the US in 2012.

The Asian country overtook the US to become the world’s biggest trading nation, bringing an end to the US’ post-war dominance of global commerce.

According to the Telegraph, the US Commerce Department revealed the total value of US exports and imports in 2012 was 3.82 trillion dollars.

China’s customs administration has already announced that the country’s total trade last year was worth 3.87 trillion dollars.

Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington, told Bloomberg that it was remarkable that an economy that is only a fraction of the size of the US economy has a larger trading volume

More…

Jim Sinclair’s Commentary

A modest reminder of why gold will trade at and above $3500.

Fed Has Bought More U.S. Gov’t Debt This Year Than Treasury Has Issued
February 7, 2013
By Terence P. Jeffrey

(CNSNews.com) – So far this calendar year, the Federal Reserve has bought up more U.S. government debt than the U.S. Treasury has issued.

On Dec. 31, the total debt of the U.S. government was $16.4327 trillion and then-Treasury Secretary Tim Geithner announced that the government had hit what was then the legal debt limit. Last week, however, Congress enacted a law to suspend the federal government debt limit until May 18, 2013, and allow the administration to resume increasing the debt.

By the close of business on Wednesday, Feb. 6, according to the U.S. Treasury, the total federal debt had climbed to $16.4799 trillion—an increase of $47.2 billon for the calendar year.

At the close of business on Jan. 2, the Federal Reserve had owned $1.661 trillion in U.S. Treasury securities. By the close of business on Feb. 6, it owned $1.7172 trillion—an increase of $51.1 billion for the calendar year.

Thus, the Federal Reserve’s purchases of U.S. government debt in this calendar year have exceeded the Treasury’s net debt issues by about $3.9 billion.

Also last week, the Federal Reserve announced that it “will continue purchasing additional … longer-term Treasury securities at a pace of $45 billion per month.”

More…

Jim Sinclair’s Commentary

Sorry to say, but it is true.

clip_image001

 

Jim Sinclair’s Commentary

Another who says what I do, HOLD!

The following warning not to sell gold (see underline in email below) was sent again to Fekete Research subscribers because the bullion markets are going into intraday backwardation which means that physical gold’s cash price is rising above the paper gold futures market price. This means that supplies of gold for sale are dropping due to a rising distrust of the futures market that lacks gold on hand to meet its obligations to cover the large paper sales of gold that have been forcing its price down. Gold buyers are therefore demanding immediate delivery of physical gold from the cash market rather than waiting for a future delivery of gold even though it can be bought at a lower price in the futures market. The current unprecedented demand for physical gold resulting in futures market backwardation was  predicted by Professor Antal Fekete, Founder of the New Austrian School of Economics in the following paper.

Bottom Line: Selling in the futures market to depress the price of gold is being done by big money to acquire gold bullion and mining shares cheaply before gold begins what may be its biggest rally to date.

More…

Jim Sinclair’s Commentary

Counsel to the community from CIGA Patrick’s dog’s gold sense.

He has his eye on the ball (picture 1)
He keeps cool all of the time (picture 2)
And I just told him papergold went down (picture 3)

clip_image002 clip_image004[1] clip_image006[1]

 

Jim Sinclair’s Commentary

From our friend, John Williams.

- January 2013 Housing Starts 61% Below High of January 2006
- Annualized January PPI Headline Inflation of 2.5% Was 12.1%, Before Seasonal-Adjustment Muting
- Revised Seasonally-Adjusted Inflation Data Suggestive of Instabilities in Monthly Headline Reporting

"No. 504: January 2013 Housing Starts, PPI and PPI and CPI Revisions"
Web-page: http://www.shadowstats.com

Jim Sinclair’s Commentary

For your consideration.

Daily Sentiment Index on gold back at the all time low as of Friday  – 5% bulls left.

clip_image008

 

Jim Sinclair’s Commentary

Does the Administration and the Republican legislators kick this forward one more time or take their caster oil?

Here comes the kick!

Pentagon informs Congress of plans to furlough 800K civilians
By Jeremy Herb – 02/20/13 11:16 AM ET

The Pentagon notified Congress on Wednesday it will be furloughing its civilian workforce of 800,000 employees if sequestration goes into effect March 1.

Defense officials have warned lawmakers that sequestration will devastate the military and lead to a hollow force, but the civilian furloughs will be one of the first major impacts felt by the across-the-board cuts.

The Pentagon furloughs will affect civilians across the country. Pentagon officials have said that civilians could face up to 22 days of furloughs, one per week, through the end of the fiscal year in September. The employees would receive 30 days notice before being furloughed.

“We are doing everything possible to limit the worst effects on DOD personnel — but I regret that our flexibility within the law is extremely limited,” Defense Secretary Leon Panetta wrote in a message to the department. “The president has used his legal authority to exempt military personnel funding from sequestration, but we have no legal authority to exempt civilian personnel funding from reductions.”

The Joint Chiefs also testified before both the House and Senate last week to lay out the dangers of sequestration, as the Pentagon has taken a much more proactive approach to the cuts than when they were set to hit in January.

More…

Jim Sinclair’s Commentary

Peak Prosperity has a nice article on the "Picture of a Felony, Gold"

clip_image002

Gold’s Regular Morning Mugging
A broad daylight crime-in-progress?
by Adam Taggart
Tuesday, February 19, 2013, 8:38 PM

Not everyone is a morning person. And few people like Mondays.

But if you’re a precious metals investor, mornings – especially Mondays – are brutal.

The Evidence

The precious metals are routinely sold off at or soon after the 8:20am EST morning open of the New York NYMEX exchange.

Below are the daily gold price charts (source: Kitco) for each Monday (or Tuesday, if Monday was a holiday) since early this year. The current day’s gold price is noted by the bright green line. The morning takedown is highlighted by the orange oval.

Monday, January 7

Gold is taken down $10 immediately after the 8am NYMEX open

clip_image003

Monday, January 14

A late breaking rally begun on the London exchange is quickly contained at the NYMEX open, and then beaten down nearly $10. Notice that the previous Friday’s gold price action (the bright blue line) also showed the same behavior at the same time, but with an even more severe response once the NYMEX opened.

clip_image004

Monday, January 21

The 8am sell-off is smaller here (only a few $), but still noticeable.

clip_image005

Monday, January 28

Again, a sell-off happens after the 8am open. Note again how the previous Friday’s action was similar, but even more severe.

clip_image006

Monday, February 4

Finally, an outlier. While there was an initial dip in the first hour of the NYMEX, the price took off soon after. So let’s not count this one.

clip_image007

Monday, February 11

An immediate $14 drop at the 8am open. The downward momentum started in London, but the vertical downdraft once the NYMEX opened is unmistakable.

clip_image008

Tuesday, February 19

While less sharp, the steady selling clearly begins at 8am, beating gold down $12 to the technically significant $1,600 threshold.

clip_image009

Volume & Timing

Running the above data by Chris, he noted two additional observations.

The first is that the price suppression is commencing increasingly in advance of the start of the NYMEX’s open outcry process at 8:20am EST (i.e., how trading happens at the NYMEX). This suggests that it’s being done on behalf of powerful players granted permission to circumvent the rules.

clip_image011

The second is that the volume levels in this pre-open trading is similar to that seen during active hours. That is very unusual in markets, and exceptionally high.

clip_image013

More…