Jim’s Mailbox

Posted at 10:33 AM (CST) by & filed under Jim's Mailbox.

Jim,

This truly is the greatest transfer of wealth in the history of mankind. Nobody is dissecting this action by the CBs. It has been mentioned as you have here, but like a puff of smoke, poof it’s gone.

Has anyone truly stopped and considered with forward thought what this means? The CBs have transformed from "supporting" their own member banks(TARP), to "supporting" government debt (treasuries, CDOs, swaps) to now "supporting" stocks (tangible assets).

All the prior are debt instruments they created. Stocks are tangible assets- corporations. All of these are funded by the same instrument by CBs – fiat paper from thin air.

Looking forward, who will own the world? Bought with what, nothing?

Where is the outrage?

I would appreciate the community addressing this issue, before it’s too late.

CIGA John S.

Dear John,

It is already too late.

Jim

 

Jim Sinclair’s Commentary

This method is as reliable as the new transparent USA Federal Reserve’s advice on the direction of QE.

Jim,

Hope you see this picture I scanned. I ordered Chinese food today and this is what I found in my fortune cookie…

CIGA Wolfgang

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Dear JRD,

This is no accident. It is a means of keeping the budget deficit at horrendous levels.

This does not take the cake as you said. This is the modern let them eat cake.

Respectfully,
Jim

No performance bonuses for US Veterans Benefits Administration senior executives
By Leo Shane III
Stars and Stripes
Published: April 26, 2013

Excerpts:

The announcement comes as the department faces increased scrutiny over the backlog, which has remained stagnant for more than a year. The number of disability and compensation claims pending more than 125 days has stayed near 600,000 for more than a year, and the average time to complete a claim now sits at more than nine months.

Critics have blamed the problem in part on underperforming employees and a lack of leadership among senior leaders.

VA officials could not say how much the forfeited bonuses will total. In fiscal 2011, senior executives throughout the department pulled in about $3.4 million in performance awards.

Both the White House and department officials have said they believe VA leaders are on the right path toward solving the claims backlog, thanks to new digital records systems, new training for VBA employees, and new processes designed to fast-track certain claims. 

The VA drew new criticism Friday when the Pittsburgh Tribune-Review reported that top regional directors in the Pittsburgh veterans system received performance bonuses of more than $12,000 each for fiscal 2011, despite a deadly outbreak of Legionnaires’ disease which sicked 21 patients and led to five deaths.

More…

Jim,

I would hate to have this guy (Bennie) as my broker.

“Ben, can you give me advice on the stock market?”
“Sure… it could go up and it could go down.”

‘Nuff’ said.

CIGA Wolfgang

Fed Signals It Could Increase or Decrease Stimulus

AP The Federal Reserve held fast to its ultra-accommodative monetary policy, solidified by what board members described as an economy weakened by fiscal policy. The Fed also said it will continue to buy $85 billion a month in Treasury and mortgage bonds.

More…

Dear Jim,

There are many reasons to buy junior miners and Gold by looking at the charts not only because they are cheaper then 2001, but a very strong factor is this fact *Junior mining stocks see Record High insiders buying*

INK Research’s Venture indicator hit 1,305 percent last Monday, a new record. The second record peak of 735 percent was set on Oct. 27, 2008. That means there are more than 10 stocks listed on the exchange with key insider buying for every one seeing selling.

GOLD:$XAU ratio for the first time in 30 years is showing a ratio like this. We are at an extraordinary inflection point with Gold and Gold shares providing a once in a lifetime opportunity in my view. Looking at the HUI Gold Chart we see nearly 2001 levels, the TSI indicator is below 2001 levels.

All charts speak for themselves.

The demand for physical Gold in Asia will continue to be astonishing to everyone, and this demand will continue to rise up so there will be no bear market for physical Gold until this demand stops and the trust returns to the financial system of our economies

Regards,

CIGA Luis Ahlborn Sequeira

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Jim Sinclair’s Commentary

Courtesy of CIGA Craig.

Jim,

What, me worry? Nope. Just helps me add daily to the collection. The goons can hit the paper but they can’t get my physical. Today is another good day if you are a buyer.

CIGA Craig

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Dear Mr. Sinclair,

This dates from the second day of the gold-price rout, but it’s just a choice quote from Jim Grant, on QE and its pervasive market distortion:

"Who gets the first crack at this money?  Well, it’s Goldman Sachs and SocGen and Citibank and all the banks that, except for the largesse of the taxpayers, would not be around telling us how lousy gold is."

Click here for the full interview…

Many thanks for all your advice,
CIGA John

 

Hi Jim,

Just thought I’d mail you a pic of my "little man" Brin who was enjoying himself at the loch side. As you can see, we’re really stressed about the recent paper price slide. Thanks for all the advice I am an avid reader of more than 4 years.

CIGA Chris

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Jim,

"In a survey of 60 central bankers this month by Central Banking Publications and Royal Bank of Scotland Group Plc, 23 percent said they own shares or plan to buy them. The Bank of Japan, holder of the second-biggest reserves, said April 4 it will more than double investments in equity exchange-traded funds to 3.5 trillion yen ($35.2 billion) by 2014. The Bank of Israel bought stocks for the first time last year while the Swiss National Bank and the Czech National Bank have boosted their holdings to at least 10 percent of reserves."

This is very unusual: the Swiss National Bank is buying stock to 10% of their reserves! I can’t believe they have done it for getting a better yield on their reserves.

There is a plan by all the Central Banks to hold things together as long as possible whatever the cost is. It can’t be otherwise.

As Central Bankers probably know that whatever the course of action they take, the western world and Japan are going straight against the wall and a reset will happen there is an implicit (or explicit) consensus to delay the inevitable until the end.

Asia (including China) and Russia will probably go along too.

"In Asia, the BOJ announced plans to put more of its $1.2 trillion of reserves into exchange-traded funds this month as it doubled its stimulus program to help reflate the economy. The Bank of Korea began buying Chinese shares last year, increasing its equity investments to about $18.6 billion, or 5.7 percent of the total, up from 5.4 percent in 2011. China’s foreign-exchange regulator said in January it has sought “innovative use” of its $3.4 trillion in assets, the world’s biggest reserves, without specifying a strategy for investing in shares. "

Since every central banker knows a reset will happen, it may well be that there is a deal between the Western and Asian central banks authorizing the accumulation of gold by the Asian central banks (including Russia).

Click here to read the full article…

Best regards,
CIGA Christopher