In The News Today

Posted at 6:29 PM (CST) by & filed under In The News.

My Dear Friends,

If the IMF is so dumb as to pursue the confiscation of depositor’s money or abandons the Cypriot banking system, Cyprus has one hell of a bargaining chip for solvency.

Aphrodite gas field
From Wikipedia, the free encyclopedia

Aphrodite gas field is an offshore gas field off the southern coast of Cyprus located at the exploratory drilling block 12 in the country’s maritime Exclusive Economic Zone. Located 34 kilometres (21 mi) west of Israel’s Leviathan gas field, block 12 is believed to hold 3 to 9 trillion cubic feet (85×109 to 250×109 m3) of natural gas.[4][5]

Noble Energy received the concession to explore block 12 in October 2008.[6] In August 2011, Noble entered into a production-sharing agreement with the Cypriot government regarding the block’s commercial development.[7] Sources in Cyprus indicated in mid-September that Noble had commenced exploratory drilling of the block.[8]

Cyprus demarcated its maritime border with Egypt in 2003, and with Lebanon in 2007.[9] Cyprus and Israel demarcated their maritime border in 2010.[10] Turkey, which does not recognize the border agreements of Cyprus with its neighbors,[11] threatened to mobilize its naval forces in the event that Cyprus would proceed with plans to begin drilling at Block 12.[12] Cyprus’ drilling efforts have the support of the United States, European Union and United Nations, and on September 19, 2011 drilling in Block 12 began without any incidents being reported.[13] The development of oil and gas resources in the Cypriot Exclusive Economic Zone (EEZ) abide to the UN Convention of the Law of the Seas (UNCLOS) which the Republic of Cyprus ratified in 1988.[14]

According to Noble Energy, a total gross unrisked deep oil potential is 3.7 billion barrels (590×106 m3). The field has a gross mean average of 7 trillion cubic feet (200 billion cubic metres) of natural gas with an estimated gross resource range of 5–8 trillion cubic feet (140×109–230×109 m3).[15][16]

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Jim Sinclair’s Commentary

As a net result of the failure of the IMF to fully consider the ramifications of their actions and attempt to break the implied promise that no depositor will lose because of bank’s miscreant activities in the OTC derivative market:

Gold now is moving from Slavery to the Fed to Freedom.

Jim Sinclair’s Commentary

Sometimes you find that others abandon you, but always climb back on and keep going if you know you are right.

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Jim Sinclair’s Commentary

This New Zealand item was planned before Cyprus was voted down. Such a move by New Zealand is extremely high risk.

Confidence that no depositor will suffer is the glue that has held this system together. Break that confidence, and you break the system.

National planning Cyprus-style solution for New Zealand
Tuesday, 19 March 2013, 11:32 am Press Release: Green Party
19 March 2013

National planning Cyprus-style solution for New Zealand

The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.

“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

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Jim Sinclair’s Commentary

I wonder if she is thinking “I’ll never smile again…”

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Jim Sinclair’s Commentary

This is definitely a "Red October" event. The West must wake up to the fact that we do not rule the globe. The attitude of invincibility sells well at home but may not be able to put into practice on a wholesale basis.

The uninvited guest: Chinese sub pops up in middle of U.S. Navy exercise, leaving military chiefs red-faced
By MATTHEW HICKLEY
Last updated at 00:13 10 November 2007

When the U.S. Navy deploys a battle fleet on exercises, it takes the security of its aircraft carriers very seriously indeed.

At least a dozen warships provide a physical guard while the technical wizardry of the world’s only military superpower offers an invisible shield to detect and deter any intruders.

That is the theory. Or, rather, was the theory.

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Uninvited guest: A Chinese Song Class submarine, like the one that sufaced by the U.S.S. Kitty Hawk

American military chiefs have been left dumbstruck by an undetected Chinese submarine popping up at the heart of a recent Pacific exercise and close to the vast U.S.S. Kitty Hawk – a 1,000ft supercarrier with 4,500 personnel on board.

By the time it surfaced the 160ft Song Class diesel-electric attack submarine is understood to have sailed within viable range for launching torpedoes or missiles at the carrier.

According to senior Nato officials the incident caused consternation in the U.S. Navy.

The Americans had no idea China’s fast-growing submarine fleet had reached such a level of sophistication, or that it posed such a threat.

One Nato figure said the effect was "as big a shock as the Russians launching Sputnik" – a reference to the Soviet Union’s first orbiting satellite in 1957 which marked the start of the space age.

The incident, which took place in the ocean between southern Japan and Taiwan, is a major embarrassment for the Pentagon.

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Jim Sinclair’s Commentary

Cyprus voted down the bill to impose the confiscation of depositor’s money. Now the IMF must act as their bluff has been called by the Russians.

The IMF must lose face here by backing down or they will start a Western world run on the banks.

 

Jim Sinclair’s Commentary

You would have to be a pinhead to think this would not occur.

- Housing Starts Appear to Be Stagnating Anew

No. 511: February 2013 Housing Starts
Web-page: http://www.shadowstats.com

Jim Sinclair’s Commentary

Rejection by citizen depositor’s pressure on their elected and appointed representatives in Cyprus would render the brunt of refinancing broken financial organizations by depositors as the strategy by the IMF and other central bankers dead upon arrival.

This is not the reason for the possible rejection, whatsoever. However, few other than us know that.

The Cypriot leadership wants to keep their ears and nose. The IMF made a world class mistake due to hubris and prejudice against Russians.

If this confiscation is rejected by vote the new concept of bail in is dead upon arrival for other locations. The reason of bail in and the movement away from QE by central banks that convinced the hedge funds to go to historical high shorts in gold has been totally smashed. Whomever they got this out of in the IMF did them in.

That is the risk of so called, inside information.

The entire reason for shorting gold down from $1800 has gone up in smoke. If they had just asked me ahead of time rather than thinking they were about to disgrace me, I would have told them. Those that short me who have my respect should think about who they are shorting.

Cyprus Set to Reject Bailout, Citing Tax on Bank Deposits
By LIZ ALDERMAN
Published: March 19, 2013

NICOSIA — Cyprus’s Parliament is likely to reject an international bailout package that involves taxing ordinary depositors to pay part of the bill, President Nicos Anastasiades said Tuesday, despite a revision that would remove some objections by exempting small bank accounts from the levies.

Lawmakers were scheduled to vote late Tuesday on the €10 billion, or $13 billion, bailout.

Should the measure fail in Parliament, Mr. Anastasiades and his E.U. partners would have to return to the negotiating table. Analysts have also raised the possibility of bank runs and a halt in liquidity to Cypriot banks from the European Central Bank if the measure did not pass.

The bailout plan, negotiated over the weekend, has aroused harsh criticism in many quarters for its unprecedented inclusion of ordinary bank depositors — including those with insured accounts — among those who would have to bear part of the cost.

The original terms of the bailout called for a one-time tax of 6.75 percent on deposits of less than €100,000, and a 9.9 percent tax on holdings of more than €100,000. The moves are designed to raise €5.8 billion of the total €10 billion bailout cost — a condition imposed by Cyprus’s E.U. partners.

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