Jim’s Mailbox

Posted at 11:43 AM (CST) by & filed under Jim's Mailbox.

Jim,

Great, I feel so protected! Don’t you?

CIGA David

The mystery of the drone flying above New York City

By Peter Weber | The Week

After an Alitalia pilot has a frightening encounter with a UFO near JFK airport, there are more questions than answers

On Monday, the Obama administration told Congress that it’s possible "to imagine an extraordinary circumstance" — like a 9/11-level attack — in which it would deploy an aerial drone to kill an American on U.S. soil. And quite coincidentally, that same day, the Federal Aviation Administration said a drone had been spotted in the airspace near Queens and Brooklyn. An Alitalia pilot landing at JFK airport had this jarring conversation with an air-traffic controller:

JFK controller: Uh, what did you see?
Alitalia pilot: We saw a drone, a drone aircraft
JFK controller: What altitude did you see that aircraft?
Alitalia pilot: About 1,500 feet.

You can listen to the raw audio below, but here are the basic details: The airplane was about three miles from JFK runway 31R when the pilot saw a black, unmanned aircraft with four propellers, about 3 feet wide. The drone was reportedly a frightening 200 feet away from the plane, some 1,750 feet in the air.

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Professor Sinclair,

If the 25% poaching their accounts equals $60 billion of withdrawals – presumably much of it in the general equity market – one might logically conclude that the DOW would drop.

However, thanks in large part to QE(infinity) the following are essentially DOA:

1) The truth
2) Logic
3) Rational thought
4) Adverse consequences
5) Accountability
6) Justice

Sadly, how much longer can our personal and economic freedoms last?

Respectfully,
CIGA John

My Dear Student,

I am sad to have to inform you that there is no road back as long as welfare elects the administration.

Respectfully,
Jim

Nest eggs poached
25% of Americans, in dire straits, raided their 401(k)s
By GREGORY BRESIGER
Last Updated: 2:11 PM, February 10, 2013

Posted: 10:32 PM, February 9, 2013

High unemployment and underemployment forced one in four Americans to pull money out of a retirement plan to make ends meet.

Not even the high penalties that make it prohibitive to tap into 401(k) accounts were a deterrent as a record $60 billion was yanked from nest eggs to pay for mortgages, car loans and credit card debts.

Those are some of the conclusions of a recent study by online financial-guidance service HelloWallet. The study shows that saving and retaining money for a secure retirement are becoming more difficult.

The study shows that pre-retirees are breaking into retirement accounts, taking out billions of dollars. They are spending on average some 40 percent of the money that was supposed to be for their golden years on the here-and-now.

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Dear Jim,

A letter from PPG (Pittsburgh Paints) came in yesterday. Prices increasing in April due to "raw materials." Benjamin Moore went up in February. A smaller company UGL also just announced a price increase.

Your friend,
CIGA Marc

Jim Sinclair’s Commentary

The physical market will show the way as Gold is destined to balance the balance sheet of even those deficit nations that kick and scream all the way.

The futures market will morph into a cash market as margins are raised to 100%.

The settlement contract mechanism of the PM futures market will be transformed to preventa failure to deliver. Gold and silver will not be part of that unilateral novation.

After March 27th gold is on its way to and above $3500 and above. The bottom is either in now, or will be well prior to that.

Jim,

South Korea bought 20 tonnes of gold in February.

It bought a total of 30 tonnes total in 2012. Last July it bought 14 tonnes when gold prices were around this level. It’s clear the eastern hemisphere physical buyers are buying all the gold the west will sell them at this level.  It’s only a matter of time before the physical demand pushes this market a lot higher.

CIGA David Madisonstyle

For the 1st three business days of March, the US Mint sold 11.7mm silver eagles.  That’s 34% of 2012′s full year total.

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Jim,

Paul Volcker seems to agree with you that there is no PRACTICAL way to undo the QE without saying it directly.

CIGA Jim

Volcker: Fed Faces Tough Job of Removing the Punch Bowl
Monday, 04 Mar 2013 03:03 PM

Former Federal Reserve Chairman Paul Volcker said U.S. central bank officials may find it difficult to rein in their historic stimulus at the appropriate time because “there is a lot of liquor out there now.”

“At some point when the worm turns and the party is getting under way, to use that old analogy, at what point do you begin retreating?” Volcker said Monday in a forum discussion in Washington. “You can make a mistake and go too quick, but the much more frequent mistake in my judgment is you go too slow, because it’s never popular to take the so-called punch bowl away or to weaken the liquor.”

“There’s a lot of liquor out there now,” he said during the National Association for Business Economics annual policy conference.

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