In The News Today

Posted at 10:53 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Of course it is collusion. These pieces of crap are manufactured. That means they are born in collusion. They have taken birth that way since OTC derivatives were invented by three men, Armstrong, Edelman and Manko. In metals the OTC derivative was manufactured by Petifly.

The basic OTC derivative has not changed since then in the early 70s.

European regulators to charge banks over derivatives
By Vanessa Mock, Matthew Dalton, and Katy Burne
The Wall Street Journal
Wednesday, March 27, 2013

BRUSSELS — European antitrust authorities are moving soon to bring a case against some of the world’s largest banks alleging collusion in the $27 trillion market for credit derivatives, people familiar with the investigation said.

The probe by the European Commission involves 16 financial groups. It focuses on whether they sought to stifle competition from exchanges in the market for credit-default swaps, which pay out when a country or a company defaults on its debts.

If the European regulators press ahead with their administrative case and win, some or all of the banks could face fines.

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Jim Sinclair’s Commentary

The operative word here is "may." The take away is that cash kept offshore is at risk everywhere.

If you are in the system even in the Grand Caymans, you are at risk.

The only way to preserve your assets is gold in a private storage outside of the system.

Russia to ban cash transactions over $10,000
March 25, 2013 Viktor Kuzmin, special to RBTH

The government plans to slash the amount of cash in domestic trade.

Russia may ban cash payments for purchases of more than 300,000 rubles (around $10,000) starting in 2015. The move is expected to boost banks’ cash reserves and put a damper on Russia’s shadow economy. However, the middle class will most likely end up having to pay the price for the scheme.

Moscow is looking to kill two birds with one stone: Firstly, it wants to bring some of the population’s “grey” income out of the shadow; secondly, it wants to increase the volume of cash reserves in the banks. The government’s bill will introduce the new rule to the State Duma. The document was prepared by the Ministry of Finance and approved by the government.

The restrictions on cash transactions will develop in two phases. In 2014, a ban on cash payments for purchases worth more than 600,000 rubles (about $19,500) will be introduced; the limit will then be halved to 300,000 rubles in 2015. Furthermore, the document introduces mandatory, cash-free, salary payments.

Smaller companies with fewer than 35 employees will be the only exception, and trade companies will be able to pay salaries in cash if they employ no more than 20 people on staff.

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Jim Sinclair’s Commentary

2%? Who is China kidding? Double digits are more like their intention to see in Chinese private and Chinese public hands.

China Could Soon Announce That Their Gold Reserves Have Doubled

Today’s AM fix was USD 1,663.50, EUR 1,325.18 and GBP 1,053.52 per ounce. Yesterday the London Bullion Market was closed for a national holiday. Friday’s AM fix was USD 1,666.50, EUR 1,329.16 and GBP 1,051.88 per ounce.

Silver is trading at $30.88/oz, €24.70/oz and £19.63/oz. Platinum is trading at $1,531.50/oz, palladium at $641.50/oz and rhodium at $1,025/oz.

Gold fell $5.90 or 0.35% in New York on Friday and closed at $1,663.90. Silver climbed to $31.241 then retreated but finished with a gain of 0.03%.

Gold edged off of its 4 month high as some participants may have decided to take profits ahead of the Jackson Hole Symposium on August 31st and September 1st.  Market participants expect speeches by Bernanke to offer clues with regard to further QE or what it will in time be known as – counterfeiting.

Russia, Turkey, Ukraine and the Kyrgyz Republic have again expanded their gold reserves.

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Jim Sinclair’s Commentary

Why does the West ignore Africa as if it did not exist? This is a colossal error the Good Ole Boys cannot in their egomania comprehend. It also has to do with the ancient devil of prejudice.

Xi visits Tanzania
DAR ES SALAAM
Added On March 25, 2013

The heads of state of China and Tanzania have agreed to build a comprehensive cooperative partnership.

Chinese President Xi Jinping is in the East African country on a state visit, the second leg of his foreign tour as president, after a stop in Russia.

President Xi arrived in Tanzania on Sunday and was warmly received at the airport by his Tanzanian counterpart, Jakaya Mrisho Kikwete.

Afterwards, the two leaders held talks and signed several cooperation deals.

During the meeting, Xi called the East African country an ‘old friend’ and a strong ally.

Xi stressed that China is ready to work with Tanzania on a broad cooperative partnership leading to win-win results.

The president said China’s willing to continue supporting Tanzania’s socioeconomic development and will encourage more Chinese enterprises to invest there.

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Jim Sinclair’s Commentary

Multiply that by orders of magnitude and the truth is told.

BOE Says U.K. Banks Have a Capital Shortfall of $38 Billion
By Ben Moshinsky & Jennifer Ryan – Mar 27, 2013 8:59 AM GMT-0300

U.K. lenders were told by the Bank of England to raise 25 billion pounds ($38 billion) of additional capital, less than analyst estimates.

Banks need to set aside more money to cover bigger potential losses on commercial real estate and from the euro area, possible fines for mis-selling and stricter risk models, the Bank of England said following a report by the Financial Services Authority. The BOE didn’t identify or quantify the number of lenders that need to bolster capital and it said plans already announced by banks should cover about half the shortage.

“It’s a bit of a damp squib,” said Simon Maughan, an analyst at Olivetree Securities Ltd. in London. “The banks are going to have until the end of 2013, at least, to do it and there was no change to the message that they won’t need to raise fresh capital or restrict dividend payments.”

The BOE is pushing banks to increase resilience so they can boost lending and fund an economic recovery. The bank’s focus on loan losses could still hit Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc (LLOY) the most because of their commercial real-estate holdings, while Barclays Plc (BARC), with its investment banking unit, would be most affected by the changes to risk weights, Maughan said. RBS and Lloyds have announced asset sales this year to bolster capital, and Barclays plans to sell contingent convertible notes.

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