In The News Today

Posted at 6:15 PM (CST) by & filed under In The News.

Do not be misled by what you see around you, or be influenced by what you see. You live in a world which is a playground of illusion, full of false paths, false values and false ideals. But you are not part of that world.
–SSB

 

Jim Sinclair’s Commentary

None of us would deny that we know gold is the center of the financial universe, but to say it is mixed company is another thing.

Many of us see the emancipation of gold standing before us in plain sight, but few understand what it means for the virtual financial paper gold and the ascendancy of real savings medium gold. Congratulations to Dr. Ferneke for seeing the mechanism of the transition.

Yes, the paper hangers of the Fed and their agents have shot themselves directly in the feet with that manufactured take down in price. It has backfired and maybe in a terminal fashion for virtual financial paper gold. The premium on physical gold is the ultimate TELL of where we are going.

"In fact, however, a lower gold price is making the problem more intractable, not less. The Fed is diving from the frying pan into the fire. This is the point missed by almost all observers and market analysts. They ignore the underlying flight into physical gold that continues unabated, in spite of (or, better still, because of) the panic in the paper gold market. The Fed’s intervention in bankrolling short interest is going to back-fire, for the following simple reason. The Fed’s strategy is inherently contradictory. A lower price for paper gold makes it easier, not harder, to demand delivery on maturing futures contracts.

The more paper gold Bernanke sells, the lower the cost of acquiring physical gold in exchange for paper gold becomes."

Click here to read the full report…

Jim Sinclair’s Commentary

Where is your money safe? That is the subject of our meeting in Los Angeles on May 18th. Note how financial privacy is linked to terrorism as it is linked to the prohibition now on major withdrawals of allocated gold from many in the system banks. He should not fear a paid assassin because there must be many volunteers.

Report: Ex-HSBC man accused of stealing Swiss bank data says US advised him to head for Spain
By: The Associated Press
Last Modified: 9:53 AM

MADRID – A man wanted by Switzerland on suspicion of stealing confidential banking information now being used by international financial investigators says U.S. officials warned him he was in danger and advised him to go to Spain, a newspaper reported Sunday.

Herve Falciani, a former employee of global banking group HSBC, was arrested in July after he left France by sea and tried to enter Spain through the northeastern port of Barcelona.

In December, Spain’s National Court released him after authorities argued Falciani was co-operating with investigators from several European countries in probes into tax evasion, money-laundering and terrorism financing.

He is now fighting extradition to Switzerland, where he is accused of stealing information between 2006 and 2007 related to at least 24,000 customers with private accounts with the Swiss division of HSBC.

In a lengthy interview published in El Pais newspaper, the 40-year-old is quoted as saying that he was co-operating with U.S. Justice Department officials when he was told to head for Spain.

"They told me that from that moment my life was at risk," Falciani says. "They told me the only safe place in Europe was Spain."

The paper quotes Falciani as saying that American authorities advised him on what day to travel — July 1.

"They even knew which judge would be on duty when I arrived," he is quoted as saying.

The paper says Falciani used his finger in a side-to-side horizontal movement across his neck to reinforce the point that his life was in danger.

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Jim Sinclair’s Commentary

When will it become Fitch time for the USA? Most likely when Fitch incorporates in Singapore.

Fitch Downgrades United Kingdom to ‘AA+’; Outlook Stable

Fitch Ratings has downgraded the United Kingdom’s Long-term foreign and local currency Issuer Default Ratings (IDR) to ‘AA+’ from ‘AAA’. The Outlook is Stable. The downgrade reflects a weaker economic and fiscal outlook and hence the upward revision to Fitch’s medium-term projections for UK budget deficits and government debt. Despite the UK’s strong fiscal financing flexibility, which is underpinned by its currency’s reserve status, and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a ‘AAA’ rating

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Jim Sinclair’s Commentary

The IMF and Euroland still have not tabled an exact plan upon which to vote.

Plan for new Cyprus vote casts uncertainty on bailout
By Karolina Tagaris Published on April 18, 2013

THE €10 billion aid deal to save Cyprus from bankruptcy has been thrown into fresh uncertainty with news that the island’s  fractious parliament will vote on the final package.

The surprise vote has only just been scheduled, and early signs are that nearly half the members of the 56-seat parliament may oppose the bailout, seen as vital to keep Cyprus in the euro zone.

The Greens Party said yesterday its sole parliamentarian would vote to reject the deal, becoming the first party to announce its intentions.

However, the Communist AKEL and Socialist EDEK parties, which together have 24 seats, have been vocal in their opposition to the bailout, and are seen as likely to vote against, although there is some chance they may abstain instead.

"We’ve fought for freedom, we’ve fought to maintain the Cypriot Republic," Greens MP George Perdikis said in statement.

"It is, in my opinion, a crime and wrong to deliver Cyprus into the hands of the troika and allow it to become a colony," he said, referring to the country’s European Union, European Central Bank and International Monetary Fund lenders.

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Jim Sinclair’s Commentary

Add Bernanke’s recent statement to this at the exact time of the IMF release of their plan for Cyprus that he might not stand for reappointment. That could be his signal to those that can hear that the end of the road is here for can kicking, and he prefers not to be remembered as Greeenspan’s bag man at the helm at the end.

Exclusive: In rarity, Bernanke to skip Jackson Hole due to scheduling conflict
By Alister Bull
WASHINGTON | Sat Apr 20, 2013 7:05pm EDT

(Reuters) – U.S. Federal Reserve Chairman Ben Bernanke will miss the annual Jackson Hole monetary policy symposium this year due to a scheduling conflict, skipping the prestigious event for the first time since taking the helm of the central bank in 2006.

The conference, held in late August in the splendor of the Grand Teton National Park in Wyoming, draws top central bankers from around the world. Bernanke’s absence would mark the first time in 25 years that a Fed chairman has not attended.

A Fed spokeswoman, responding to a Reuters enquiry, said the chairman was currently not planning to attend because of a personal scheduling conflict.

Bernanke, and former Fed chair Alan Greenspan, whom he succeeded in 2006, have periodically used the setting to preview important U.S. central bank actions. For instance, Bernanke hinted at the impending launch of a third round of massive bond purchases by the Fed – dubbed QE3 – at the conference last August.

In 2008, the conference effectively became the site of an economic war room as top policymakers huddled to figure out how to tamp down a virulent financial crisis as investment bank Lehman Brothers hurtled toward collapse.

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Jim Sinclair’s Commentary

You really believe the US is breaking out and is not in trouble?

Thank you OTC derivative manufacturers and distributors for all of this.

Britain is a ‘crisis economy’, says Mark Carney
Mark Carney, the incoming Bank of England Governor, has described the UK as a “crisis economy” as he sought to play down hopes that he could ride to the country’s rescue.
By Philip Aldrick, Economics editor

Speaking on the fringes of the International Monetary Fund’s spring meetings in Washington, he said: “The US is breaking out of the pack of crisis economies that include the eurozone, the UK and Japan.”

His words came just days after the IMF slashed its forecasts for UK growth this year and next, and urged the Chancellor to scale back his £130bn austerity programme to aid the recovery.

Christine Lagarde, the IMF managing director, signalled that the Fund will demand the UK ease off at its annual Article IV update on the economy next month.

Asked whether she agreed with IMF chief economist Olivier Blanchard that the Chancellor was “playing with fire” with his economic plans, she said: “We have said that should growth abate then there should be consideration to adjusting by slowing the pace.

“The growth numbers are certainly not particularly good. So, in a sense, this is a continuation of the position. What has changed is clearly the quality of the numbers.”

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Unintended Consequences Are Increasing World Demand for Gold
by Chris Martenson

Wednesday, April 17, 2013, 5:26 pm

With the financial experts claiming, some gleefully, that gold has "lost its safe haven status" in the aftermath of its biggest tumble in 30 years, many commentators  thought (hoped?) that the dramatic price drop would steer people away from gold ownership. To my eyes, the past week has all the earmarks of a high-gloss propaganda campaign complete with well placed anti-gold stories in the media and the careful use of language aimed at sowing doubt about gold’s ability to be a store of wealth.

But for those who consider gold a store of value, the recent gold slam is a gift: an invitation to purchase moresound money with fewer units of paper currency. In other words, a sweet deal.  Gold and silver on sale and the world is taking advantage.

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Jim Sinclair’s Commentary

Is there an application for US citizens to adopt illegal worker status?

 

Jim Sinclair’s Commentary

You know this seems quite unfair.

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Jim Sinclair’s Commentary

The new SS.

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Jim Sinclair’s Commentary

If the economy fails to recover, just rig the data.

"Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output."

Data shift to lift US economy 3%
April 21, 2013 6:29 pm
By Robin Harding in Washington

The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.

Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.

Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.

“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.

The changes will affect everything from the measured GDP of different US states to the stability of the inflation measure targeted by the Federal Reserve. They will force economists to revisit policy debates about everything from corporate profits to the causes of economic growth.

The revision, equivalent to adding a country as big as Belgium to the estimated size of the world economy, will make the US one of the first adopters of a new international standard for GDP accounting.

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Jim Sinclair’s Commentary

If you don’t like the quote just rig that as well.

Banks Throw $20 Billion at Securitized Debt Market to Avoid Markdowns
Posted on April 18, 2013 by Neil Garfield

Bloomberg Reports that the big banks are borrowing big time money using money market funds as source money for financing repurchase agreements. This stirs the obvious conclusion that the mortgage bonds — and hence the claim on underlying loans — are in constant movement making the proof problems in foreclosure proceedings difficult at best.

The underlying theme is that there is tremendous pressure to make good on the mortgage bonds that never actually existed issued by REMIC trusts that were never actually funded who made claims on loans that never actually existed. All that is why I say you should argue away from the presumption and keep the burden of persuasion or burden of proof on the party who has exclusive access to the actual proof of payment and proof of loss.

The banks are still claiming assets on their balance sheet that are either without value of any kind or something close to zero. If I was wrong about this, the banks would be flooding all the courts with proof of payment (canceled check, wire transfer receipt etc) and the contest with borrowers would be over.

Instead they argue for the presumption that attaches to the “holder” and mislead the court into thinking that possession is the same as being the holder. It isn’t. The holder is someone who acquired the instrument “for value.”

By denying the holder status and contesting whether there was any consideration for the endorsement or assignment of the loan, you are putting them in position to force them to come clean and show that there was NO consideration, NO money paid, and hence they are not holders in any sense of the word.

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Jim Sinclair’s Commentary

Broken bank balance sheets? I never thought you would see that in print by MSM.

Global economy faces ‘chronic’ crisis if reforms are not completed, warns IMF
A growing trend towards excessive risk-taking and lack of action to repair broken bank balance sheets could trigger a “chronic” new phase in the financial crisis, the International Monetary Fund has warned.
By Szu Ping Chan
3:27PM BST 17 Apr 2013

The IMF said that while near-term risks had abated in response to loose central bank policies, reforms to repair ailing banks were not yet complete and could pose a threat to future stability, particularly in Europe.

“While major UK and core euro area banks have been actively de-risking and deleveraging . . . more needs to be done to complete the repair of their balance sheets,” the IMF said in its half-yearly Global Financial Stability Report.

It came as Jens Weidmann, Germany’s central bank chief, warned that Europe could take ten years to recover from the crippling debt crisis.

“Overcoming the crisis and the crisis effects will remain a challenge over the next decade,” Mr Weidmann told the Wall Street Journal.

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