Jim’s Mailbox

Posted at 11:27 AM (CST) by & filed under Jim's Mailbox.

Jim,

Can you smell it? No really, take a big whiff. Can you smell it now? It’s the smell of “sh*t hitting the fan.”

GOTS!

CIGA Wolfgang Rech

Nasdaq trading halted due to technical issue
By CNBC

Nasdaq said on Thursday it was halting trading in all securities until further notice due to a problem affecting quote dissemination.

Dozens of publicly traded companies, including high-profile companies such as Apple (AAPL), Microsoft (MSFT) and Facebook (FB), were showing their shares halted. The Nasdaq status message was time stamped at 12:14:03 ET.

A spokesman for the SEC said, "We are monitoring the situation and are inclose contact with the exchanges."

The Nasdaq (NDAQ) options markets also issued a "system update" saying they were recommending firms route all open orders elsewhere.

The New York Stock Exchange said it had halted trading in all Nasdaq securities at its request and was cancelling orders. The NYSE otherwise declined comment.

More…

 

Jim,

Something you might find very interesting, regarding "Shadow Banking". Recently posted on Bloomberg website. Below quote says it all. Here’s the full article…

Lenders including UBS AG and HSBC Holdings Plc have warned that plans by global regulators in the Basel Committee on Banking Supervision to set minimum collateral requirements for non-centrally cleared swaps trades will prompt a global liquidity squeeze as banks struggle to locate enough securities to satisfy the standards.

CIGA Geert

 

Jim,

Looking at the recent questions/answers that have been posted on JSMineset, it seems like people do not understand how bad it will get; how the system will fracture so thoroughly that most of our purchasing power, left in the system, will disappear.

When you wrote of the importance of having a hobby farm to secure reliable food, this really drove the point home for me.

When you wrote that pensioners are an endangered species, I take you more literally than not.

When you wrote of the greed of the destroyers and their derivatives I do not take it as allegory.

When you wrote that Gold will go to $50K, it seemed to me that everything we know must change. Terms like ‘The Great Leveling’ seem intended to conjure specific images for the reader.

Have I misunderstood? Please help us understand, Jim.

Gratefully,
CIGA JaWa

CIGA JaWa,

The gold price of $50,000 is fully predicated on the emancipation of physical gold from paper gold as the mechanism of price determination.

Jim

Jim,

Been following your website for about a year now at the recommendation of a friend, and appreciate the perspective it provides.  I have a question with regard to how you would recommend a person like me position their 401k/IRA’s. I don’t trust the advice I’m given, frankly, from my Wells Fargo advisor.

Quick synopsis of me:  Wichita, KS; 44 year old family man; $800-900K net worth; no debt of any kind; own some physical gold in my possession; good job (engineer), great wife, excellent kids, 1 cat I’d like to get rid of…

Of my net worth, probably ~$500-600K is in 401k/IRA’s/529 instruments.  In my major 401k account (~$400K), I have put it all in money market options at this point in a holding pattern – no equity-based funds, no bond funds. I have also signed up for self-directed account so that I can have more flexibility going forward.  So, in my position, what would you likely do?  Utilize the self-direction to invest the money how?  Or, would you go to the extreme of actually cashing those out and taking the tax & penalty hits?

Let me add the disclaimer that the direction I take is fully my responsibility – I realize you are not providing “professional advice” and I hold you free of any liability based on your points of view.

If you come to the central part of the country, I’d love to attend one of your meetings.

Thank you for your time,
CIGA Harley

Hi Harley,

Jim’s advice regarding retirement accounts is very clear, if you can exit such accounts you should do so now without delay. The penalties you pay now will be dwarfed by the losses you will suffer when retirement accounts are nationalised. The reason he is saying it should be done now is that at some point soon you may not have the option to exit. If you don’t exit then your hard earned retirement investments will be replaced by worthless sovereign paper. If you have retirement accounts that you cannot exit, then at the very least end any voluntary contributions.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Jim,

I have followed your advice regarding GOTS: DRS for myself and companies I control. I have also limited my personal bank account to $100,000 (My wife is very helpful making sure my bank account doesn’t get too high!).

I have one problem. I manage a company with over a million dollars in its bank account and with a Broker, which is also owned by a bank. This company already has physical gold and silver and numerous gold and silver investments.

Question: We need funds available to meet corporate needs. Any thought on how to protect the corporate cash in the bank and with the broker?

CIGA Jeff

Dear Jeff,

Jim has advised that any reliance on the FDIC guarantee is pointless and that for large sums of money you should seek to open an account outside of the Western system. Singapore is the suggested jurisdiction, however international banking is a complex undertaking which should only be utilized for the express purpose of safeguarding your funds from the effects of a bank failure or a bail in. As a matter of course you should seek advice from a tax attorney in your jurisdiction.

If you wish to open a bank account in Singapore the following banks may allow you to do so, subject to your individual circumstances. Your personal attendance would be required.

DBS Bank Ltd
Overseas Chinese Banking Corporation Ltd(OCBC)
United Overseas Bank Ltd(UOB)

You should also note  that since the inception of the FACTA legislation foreign banks are demanding higher levels of deposits from US citizens and in some cases they are not opening accounts at all for them.

The other option could be for your company to seek true custodian ship, which is when the company asks for and pays for a letter from its bank that states that the company’s assets are being held segregated from the balance sheet of the bank.

In regards to the brokerage account your company holds, you should leave no excess funds in that account, rather only deposit what is needed to for trading requirements and of course ensure that any shares are held via DRS or in certificate form on behalf of the company. It is an underlying principle that you must eliminate all third parties between your company and its investments.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Jim,

Does GOTS include closing Roth Ira accounts for which taxes have already been paid? If so, why is this recommended?

Thank you,
CIGA Gerald

Hi Gerald,

Jim’s advice is that all retirement accounts are at risk of nationalisation. The reason is simply because retirement accounts are a easy target and they represent a huge pool of funds ($18 trillion as of the end of 2011). Whether the taxes have been paid or not will not make a difference. All retirement funds face the prospect of being substituted for worthless sovereign paper.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com