Posted at 8:56 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The real story.

Gold firms up on good seasonal offtake amid global cues

Gold prices bounced back at the domestic bullion market today due to renewed buying interest from jewellery traders and retailers ahead of festivities amid buoyant overseas sentiment.

Elsewhere, silver continued its rising trend for the third straight session on the back of heavy demand from industrial users.

Gold is witnessing some momentum and demand is picking up gradually as jewellery stockists and traders are restocking ahead of festivals like Diwali, Dhanteras and for the upcoming wedding season, a bullion trader said.

Standard gold (99.5 purity) moved up by Rs 30 to end at Rs 26,965 per 10 grams from last Saturday’s level of Rs 26,935.

Pure gold (99.9 purity) also added by a similar margin to finish at Rs 27,115 per 10 grams compared to Rs 27,085.

Silver (.999 fineness) jumped by Rs 110 to conclude at Rs 39,470 per kg against against weekend level of Rs 39,360.

On the global front, shiny-metal rallied to a four-week high after speculators turned highly bullish over the precious metal as heightened concerns over faltering global economic outlook amid easing fears of an earlier-than-expected US interest rate hikes, boosting demand for safe haven assets.



Jim Sinclair’s Commentary

A step forward for the Yuan is a step backwards for the dollar.

Chinese Yuan and US dollar compete in African markets
By Tonderayi Mukeredzi

A number of African central banks are applying to the Chinese Central Bank for currency swaps, with Zimbabwe and Ghana already using the RMB as part of their reserve currency. Nigeria could also shift more of its foreign reserves into Chinese yuan from dollars as the RMB gains greater traction in global trade.

In March this year Zimbabwe joined a growing list of countries in Africa and the world using the Chinese currency, yuan, also known as remnibi (RMB), as one of its official currencies after its central bank added the RMB, the Japanese yen, the Australia dollar and the Indian rupee to the existing basket of currencies.

Zimbabwe abandoned its currency in 2009 when it was rendered worthless by excessive inflation. Since then, it has been using a basket of currencies dominated by the US dollar.

In announcing the decision to adopt the yuan and other currencies, the then Reserve Bank of Zimbabwe acting governor, Charity Dhliwayo, said that the southern African country’s trade and investment with China, India, Japan and Australia "had grown appreciably."

China is Zimbabwe’s third largest trading partner after South Africa and the European Union, and until recently was the biggest buyer of its tobacco. In 2013, trade between China and Zimbabwe amounted to $1.1 billion.

Gift Mugano, a trade expert and executive director at the Nelson Mandela Metropolitan University’s Africa Economic Development Strategies, told Africa Renewal that the addition of the RMB to the basket of currencies would only consolidate Zimbabwe’s bilateral relations with China rather than boost trade, and help China’s quest to make its currency popular.


Dollar drops, global growth concerns spark Fed rate hike rethink

The U.S. dollar fell against a basket of major currencies on Monday on persisting concerns about global economic growth and worries that the Federal Reserve may delay its first interest rate hike.

Concerns over the health of overseas economies continued in the wake of last week’s weak German economic data and the International Monetary Fund’s cut to its global growth forecast.

Meanwhile, Fed officials said on Saturday that a slowdown in the global economy could hamper a tightening of U.S. monetary policy.





























Fed Vice Chairman Stanley Fischer said at a Saturday event sponsored by the IMF that the global outlook might hamper the effort to normalize U.S. monetary policy after years of extraordinary stimulus.

In addition, Fed Governor Daniel Tarullo said at a conference that he was worried about global growth, while Chicago Fed President Charles Evans said a strengthening of the dollar and weak growth abroad could mean less justification for the Fed to raise rates.

Analysts said the yen, which tends to gain on jitters over global growth, benefited from the dollar’s weakness. They said, however, that they viewed the dollar’s drop as a potential buying opportunity.


Jim Sinclair’s Commentary

The Fed backtracks after the market breaks. Let see if they really stop QE at the next Fed meeting.

Fed Rate-Rise Odds Pushed Back After Fischer Remarks
By Liz Capo McCormick
October 13, 2014 1:29 PM EDT

Derivative markets show the Federal Reserve won’t raise its target interest rate until after September 2015 as comments from Vice Chairman Stanley Fischer indicated escalating concern about growth outside the U.S.

Derivative markets show the Federal Reserve won’t raise its target interest rate until after September 2015 as comments from Vice Chairman Stanley Fischer indicated escalating concern about growth outside the U.S.

Rates on federal fund futures show the likelihood of a September rate increase fell to 46 percent, down from 56 percent on Oct. 10, and 67 percent two months ago, according to data compiled by Bloomberg. The chance of an increase in October is 56 percent. The implied yield on the December 2015 Eurodollar contract, the world’s most actively traded futures, traded at 0.82 percent, the lowest since May 2013 and down from 1.085 percent a month ago.

“If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise,” Fischer said in an Oct. 11 speech at the International Monetary Fund’s annual meetings in Washington.

“Fischer made it clear that if the biggest economic area in the world is going through trouble, then that will affect the U.S. and impact their forecasts and they won’t tighten so soon,” said Stan Jonas, who has been trading money-market derivatives since Eurodollars futures trading began in 1981, by telephone from New York. “The probability of the Fed’s tightening priced in the market has been moved further out.”


Jim Sinclair’s Commentary

Remember I suggested you memorize the day Alibaba became public. That is what tops are made of and never occurred in gold.

Manic-Buying Turns To Panic-Selling As ‘Illiquid’ Stocks Plunge To 5-Month Lows
Submitted by Tyler Durden on 10/13/2014 16:01 -0400

Just as we warned, liquidity was incomprehensibly low today (below normal pre-market levels during the peak of the trading day) and the intraday whipsaws were meteoric as a closed cash bond market enabled the slightest twitch in USDJPY to send S&P algos into conniptions. Biotech crashed. Trannies were ripped ridiculously higher at the open – then collapsed into correction (-11% from highs); US Airlines have fallen for 6 straight days, crashing 17% (with today’s 7% plunge – driven by chatter over airborne Ebola – its biggest in over years). Tresury futures implied a notable drop in yields across the curve (10Y -7bps at 2.21%, 30Y 2.97%, and 5Y 1.45%). The USdollar closed -0.33% led by EUR and JPY strength (but AUD surged 1% extending gains after China data).  Gold ($1234), Silver, and copper all gained on the day as WTI fell once again (despite some intraday strength in the middle of the day). Stocks "flash-crashed" on very heavy volume in the last 30 mins with VIX breaking above 24 (highest in 16 months). All major equity indices are now below their 200DMA with the worst 3-day loss since late 2011.


Liquidity was simply not there – but but but HFTs?

Which meant – just as we warned – epic whipsaws in stocks…


Jim Sinclair’s Commentary

It isn’t coming. It is already here in the size of their derivative positions, but unrecognized

U.S. and U.K. Officials Meet to Discuss Key Components for the Resolution of a Global Systemically Important Bank

The heads of the Treasuries and leading financial regulatory bodies in the United States and United Kingdom today participated in an exercise designed to further the understanding, communication, and cooperation between U.S. and U.K. authorities in the event of the failure and resolution of a global systemically important bank, or G-SIB.

The event was hosted by Federal Deposit Insurance Corporation Chairman Martin Gruenberg. Additional participants from the United States were Treasury Secretary Jacob J. Lew, Board of Governors of the Federal Reserve System Chair Janet Yellen, Comptroller of the Currency Thomas Curry, U.S. Securities and Exchange Commission Chair Mary Jo White, U.S. Commodity Futures Trading Commission Chairman Timothy Massad, Federal Deposit Insurance Corporation Vice Chairman Thomas Hoenig, Federal Deposit Insurance Corporation Board Member Jeremiah Norton, Federal Reserve Board Governor Daniel Tarullo, Federal Reserve Bank of New York President William Dudley, and Deputy Treasury Secretary Sarah Bloom Raskin.

Participants from the United Kingdom were Chancellor of the Exchequer George Osborne; Bank of England Governor Mark Carney, Deputy Governor for Financial Stability Sir Jon Cunliffe, Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority Andrew Bailey, Deputy Governor for Markets & Banking Minouche Shafik; and Financial Conduct Authority Chief Executive Martin Wheatley.

The exercise’s high level discussion furthered understanding among these principals regarding G-SIB resolution strategies under U.S. and U.K. resolution regimes, aspects of those strategies requiring coordination between U.S. and U.K. authorities, and key challenges to the successful resolution of U.S. and U.K. G-SIBs. This exercise builds on prior bilateral work between U.S. and U.K. authorities, which, since late 2012, has included the publication of a joint paper on G-SIB resolution, participation in detailed simulation exercises for G-SIB resolution, and participation in other joint G-SIB resolution planning efforts.

The exercise demonstrates the continued commitment of the United States and the United Kingdom since the financial crisis to promote a safer and sounder financial system by cooperating to address issues involved in the orderly resolution of large and complex financial institutions without cost to taxpayers. Both countries reiterated their commitment to the Financial Stability Board’s ongoing work concerning G-SIB resolution. The exercise was timed to coincide with the IMF annual meeting.


Jim Sinclair’s Commentary

The clear and present risk of Ebola is Panic.

State: Don’t bring waste from Ebola victim’s personal items here 9:44 p.m. CDT October 12, 2014

BATON ROUGE, La. – State Attorney General Buddy Caldwell is seeking a temporary restraining order to block the disposal of incinerated waste from the Dallas Ebola victim’s personal items and belongings at a Louisiana landfill.

It has been reported that six truckloads of potential Ebola contaminated material collected from the apartment where the Dallas Ebola victim became ill were brought to Port Arthur, Texas on Friday to be processed at the Veolia Environmental Services incinerator. From there the incinerated material is slated to be transported to a hazardous waste landfill in Louisiana for final disposal.

Caldwell said the unknowns involved surrounding the Ebola virus have the state wanting to proceed with caution.

"We certainly share sadness and compassion for those who have lost their lives and loved ones to this terrible virus, but the health and safety of our Louisiana citizens is our top priority," he said. "There are too many unknowns at this point, and it is absurd to transport potentially hazardous Ebola waste across state lines. This situation is certainly unprecedented and we want to approach it with the utmost caution. We just can’t afford to take any risks when it comes to this deadly virus."

The Louisiana Attorney General’s Office said it is in the process of finalizing the application for temporary restraining order and expects it to be filed as early as Monday morning. Additionally, the office is sending a demand letter to Texas state and federal officials, along with private contractors involved seeking additional information into the handling of this waste. Caldwell’s office is in contact with Louisiana health and environmental agencies involved in the matter.


Jim Sinclair’s Commentary

They put him in a garbage bag.

Suspected Ebola carrier wrapped in plastic after Czech police seal off rail station
Published time: October 13, 2014 10:22
Edited time: October 13, 2014 12:49

Czech police and hazmat suit-wearing doctors have seized a traveler from Ghana at Prague’s main railway station. The man, suspected of suffering from the Ebola virus, was wrapped in black plastic by the authorities and taken away.

The police dispatched some 15 officers from the capital’s rapid response squad to cordon off the station’s lobby, news website reported. The operation didn’t interrupt the normal operation of the railway station, but probably scared passengers who were in the vicinity.

Footage from the scene showed a man wearing biohazard suit pushing a luggage cart with a person sitting on it almost completely covered by black plastic.

The target of the police operation was a student from Ghana, who arrived in Prague earlier Saturday evening. He managed to get through medical screening at the airport and was caught later at the railway station.

“We took emergency measures after receiving a report that there was a man from Ghana at the station possibly carrying Ebola,” Prague police spokesperson Andrea Zoulová said.


"Prepare For Runs", IMF Warns Policymakers Of "Elevated Financial Stability & Liquidity Risks"
Submitted by Tyler Durden on 10/12/2014 22:51 -0400

The extended period of monetary accommodation and the accompanying search for yield are leading to credit mispricing and asset price pressures, increasing the chance that financial stability risks could derail the recovery.


Concerns have shifted to the shadow banking system, especially the growing share of illiquid credit in mutual fund portfolios.

Should asset markets come under stress, an adverse feedback loop between outflows and asset performance could develop, moving markets from a low- to a high-volatility state, with negative implications for emerging market economies.


Funds investing in credit instruments have a number of features that could result in elevated financial stability risks.


Jim Sinclair’s Commentary

This is a black swan in itself

ISIS could hold swath from northern Syria to the gates of Baghdad
By Chandrika Narayan, Ben Wedeman and Laura Smith-Spark, CNN
updated 9:55 PM EDT, Sun October 12, 2014

Baghdad (CNN) — ISIS fighters stand on the verge of victory on two fronts as poorly equipped local forces do their best to resist.

The Islamist extremists appear set to take a key Syrian town along the Turkish border and an entire province on Baghdad’s doorstep.

Leaders in Iraq’s Anbar province pleaded for U.S. ground troops to halt the group’s rapid, relentless assault.

On Sunday, the leader of U.S. military efforts to fight ISIS in Iraq says the terror group came within 25 kilometers (15.5 miles) of the Baghdad airport.

Offering what appeared to be previously unreported details, Gen. Martin Dempsey told ABC’s "This Week" that the United States had to risk bringing in low-flying attack helicopters to keep ISIS at bay.

"The tool that was immediately available was the Apache (helicopter). The risk of operating in a hostile environment is there constantly," the chairman of the Joint Chiefs of Staff said.

"You’re not going to wait until they’re climbing over the wall," Dempsey said. "Had (ISIS forces) overrun the Iraqi unit, it was a straight shot to the Baghdad airport. So, we’re not going to let that happen."

ISIS, the self-proclaimed "Islamic State" which also is referred to as ISIL, controls about 80% of the province, said Anbar Provincial Council president Sabah Al-Karhout.

Reports suggest the militants have encircled Haditha, the last large town in Anbar not yet in ISIS’ hands.

In a major setback, Gen. Ahmed Saddak, the police chief of Anbar province, was killed over the weekend in a roadside bomb that targeted his convoy, officials said.

Should all of Anbar fall, the Sunni extremists would rule from the perimeter of Iraq’s capital to Raqqa in Syria, at least, according to the provincial council’s deputy head, Falleh al-Issawi.

They would control a swath 350 miles (563 kilometers) long.


Jim Sinclair’s Commentary

This time the Governor gave the nurse’s dog a stay of execution.

Blame game begins in US after nurse infected with Ebola
Published time: October 13, 2014 06:03  
Edited time: October 13, 2014 07:38

A leading US health official sparked controversy after saying it is “deeply disturbing” that a Dallas nurse became infected with Ebola while caring for a patient, arguing that many US hospitals are ill-prepared to handle the virus.

In America’s first test case in dealing with Ebola outside of Africa, the US medical community has not performed as well as expected. A female nurse who cared for Thomas Eric Duncan, who arrived in the US last month from Liberia, became the first person to contract the disease inside the United States.

Dr. Tom Frieden, director of the Centers for Disease Control and Prevention (CDC), blamed a break in protocol as the reason for the transmission.

“The healthcare workers who cared for this individual may have had a breach of the same nature,”Frieden said in a press conference Sunday. “It is certainly very concerning and it tells us there is a need to enhance training and make sure protocols are followed. 

Jim Sinclair’s Commentary

A trend starting to grow.

Chinese Yuan and US dollar compete in African markets
By Tonderayi Mukeredzi

A number of African central banks are applying to the Chinese Central Bank for currency swaps, with Zimbabwe and Ghana already using the RMB as part of their reserve currency. Nigeria could also shift more of its foreign reserves into Chinese yuan from dollars as the RMB gains greater traction in global trade.

In March this year Zimbabwe joined a growing list of countries in Africa and the world using the Chinese currency, yuan, also known as remnibi (RMB), as one of its official currencies after its central bank added the RMB, the Japanese yen, the Australia dollar and the Indian rupee to the existing basket of currencies.

Zimbabwe abandoned its currency in 2009 when it was rendered worthless by excessive inflation. Since then, it has been using a basket of currencies dominated by the US dollar.

In announcing the decision to adopt the yuan and other currencies, the then Reserve Bank of Zimbabwe acting governor, Charity Dhliwayo, said that the southern African country’s trade and investment with China, India, Japan and Australia "had grown appreciably."

China is Zimbabwe’s third largest trading partner after South Africa and the European Union, and until recently was the biggest buyer of its tobacco. In 2013, trade between China and Zimbabwe amounted to $1.1 billion.


Dallas Hospital Worker Tests Positive For Ebola In First Person-To-Person Transmission On US Soil
Submitted by Tyler Durden on 10/12/2014 08:57 -040

And then there was #2. A few hours ago, Texas Health Presbyterian Hospital, announced that a health care worker who cared for dying Ebola patient Thomas Eric Duncan, has tested positive for the virus after a preliminary test, officials said early Sunday. If confirmed, it would be the first known person-to-person transmission of the disease in the United States. The name of the patients is currently unknown, what is known however, is that the worker was "considered to be at low risk for contracting the virus" and the he or she was wearing full protective gear when treating Duncan, suggesting – yet again – that there is a transmission mechanism which is not accounted for under conventional protocol.

Confirmatory testing of the second case on U.S. soil will be conducted by the Centers for Disease Control and Prevention in Atlanta, the statement from the Texas Department of State Health Services said. 

The worker reported a fever late Friday and was isolated and referred for testing. "We knew a second case could be a reality, and we’ve been preparing for this possibility," said Dr. David Lakey, commissioner of the Texas Department of State Health Services. "We are broadening our team in Dallas and working with extreme diligence to prevent further spread."

Alas, until Friday night, said spread was once again completely uncontained if said worker was able to interact with countless others, who will become symptomatic only after they in turn have spread the disease to an unknown number of their own friends, acquaintances and co-workers.

The statement added that people who had contact with the health care worker after symptoms emerged "will be monitored based on the nature of their interactions and the potential they were exposed to the virus."


Jim Sinclair’s Commentary

Just getting ready?

U.S. Marines run massive drill to prepare for Ebola pandemic spreading across America
Saturday, October 11, 2014 by: J. D. Heyes

(NaturalNews) A Marine Corps base held a full-scale pandemic outbreak drill within the past week, in which local health officials and U.S. Marine and Navy personnel responded to a mock "smallpox outbreak" that occurred at the installation., based in Jacksonville, North Carolina, quoted Lt. Joseph Kotora, public health emergency officer for Naval Hospital Camp Lejeune as saying that the drill, called "Exercise Vigilant Response," was the first of its kind at the legendary Marine Corps recruit training base.

"The drills are usually conducted annually or semi-annually," Kotora told local press. "A drill this size has never been conducted, so this is the largest pandemic exercise to my knowledge."

Though military exercises are planned well in advance, the time of this particular drill has some questioning whether it has anything at all to do with the current Ebola outbreak in West Africa. Though many Americans are tired of reading and hearing about the disease, it became much more of an issue after Thomas Eric Duncan, a West African national, brought the disease to Dallas late last month. Duncan has since died of his infection, but local, state and federal health officials are continuing to monitor dozens of people whom Duncan may have come in contact with while contagious.

One addition to the Camp Lejeune exercise: Officials opted to including the administration of vaccines during the drill so that it would more accurately reflect an outbreak situation in which medical personnel would be asked to screen patients and give inoculations.


Second US Ebola victim infected despite protective suit
Officials ‘very concerned’ that Dallas hospital worker who contracted the disease while treating the America’s first Ebola casualty was following guidelines for staying safe
By Rosa Prince
3:06PM BST 12 Oct 2014

A Dallas health worker who looked after the first Ebola victim to die in the United States contracted the disease despite wearing a full protective gown, gloves and face shield as she cared for him.

Officials in Texas said they were “very concerned” that the first transmission of the virus on US soil occurred despite following health and safety guidelines.

The female nurse, who has asked not to be named, had been classified as having a “low risk” of carrying the disease before testing positive for Ebola on Saturday night.

Dallas County Judge Clay Jenkins described her as a “heroic person who provided care to Mr Duncan.”

He went on: “This is a person who is going through a great ordeal and so is the family.”

The nurse had cared for Thomas Eric Duncan on the second occasion he attempted to get treatment in the emergency room of the Texas Health Presbyterian Hospital in Dallas.


War against Isis: US strategy in tatters as militants march on
Patrick Cockburn
Sunday 12 October 2014

World View: American-led air attacks are failing. Jihadis are close to taking Kobani, in Syria – and in Iraq western Baghdad is now under serious threat

America’s plans to fight Islamic State are in ruins as the militant group’s fighters come close to capturing Kobani and have inflicted a heavy defeat on the Iraqi army west of Baghdad.

The US-led air attacks launched against Islamic State (also known as Isis) on 8 August in Iraq and 23 September in Syria have not worked. President Obama’s plan to "degrade and destroy" Islamic State has not even begun to achieve success. In both Syria and Iraq, Isis is expanding its control rather than contracting.

Isis reinforcements have been rushing towards Kobani in the past few days to ensure that they win a decisive victory over the Syrian Kurdish town’s remaining defenders. The group is willing to take heavy casualties in street fighting and from air attacks in order to add to the string of victories it has won in the four months since its forces captured Mosul, the second-largest city in Iraq, on 10 June. Part of the strength of the fundamentalist movement is a sense that there is something inevitable and divinely inspired about its victories, whether it is against superior numbers in Mosul or US airpower at Kobani.

In the face of a likely Isis victory at Kobani, senior US officials have been trying to explain away the failure to save the Syrian Kurds in the town, probably Isis’s toughest opponents in Syria. "Our focus in Syria is in degrading the capacity of [Isis] at its core to project power, to command itself, to sustain itself, to resource itself," said US Deputy National Security Adviser Tony Blinken, in a typical piece of waffle designed to mask defeat. "The tragic reality is that in the course of doing that there are going to be places like Kobani where we may or may not be able to fight effectively."


Jim Sinclair’s Commentary

It is just around the corner.

World leaders play war games as the next financial crisis looms
Global community can see dark forces gathering but lacks the weapons or the will to tackle them effectively, writes Larry Elliott
Larry Elliott, economics editor
The Guardian, Sunday 12 October 2014 08.24 EDT

Press the uniform. Check the battle plans. Call up the reservists. Arm the bombers and refuel the tanks. Field Marshal George Osborne is going on manoeuvres.

On Monday in Washington, the chancellor of the exchequer will see if Britain is ready for war. A financial war that is. Along with his allies from the United States, he will play out a war game designed to show whether lessons have been learned from the last show, the slump of 2008.

Like all commanding officers, Osborne thinks he is ready. He will have general Mark Carney at his side. He has studied the terrain. He has a plan that he insists will work.

Let’s hope so. Because the evidence from last week’s meeting of the International Monetary Fund in Washington was that it won’t be long before the real shooting starts. The Fund’s annual meeting was like a gathering of international diplomats at the League of Nations in the 1930s. Those attending were desperate to avoid another war but were unsure how to do so. They can see dark forces gathering but lack the weapons or the will to tackle them effectively. There is an uneasy, brooding peace as the world waits to see whether lessons really have been learnt or whether the central bankers, the finance ministers and the international bureaucrats are fighting the last war.

Here’s the situation. The years leading up to the start of the financial crisis in August 2007 were like the Edwardian summer in advance of the first world war. All seemed serene, but only because of an unsustainable build-up in debt. There was a structural shift in power and income share from labour to capital. Rising asset prices compensated for real income growth.

Then came the crisis, which was long and costly. Once it was over, there was a strong urge to return to the world as it was. Countries wanted to return to balanced budgets and normal levels of interest rates, just as they had once hankered after going back on the Gold Standard.


Jim Sinclair’s Commentary

Now this how money is really made.

Record bust in Cambodia signals Thai dollar counterfeiting boom
BATTAMBANG Cambodia Sun Oct 12, 2014 6:36pm EDT

(Reuters) – Brigadier General Sar Theth is the police chief of Battambang, a languid riverside town in western Cambodia. You could also call him the seven million dollar man.

On Sept. 19, Sar Theth’s officers tracked three Thai men in a pick-up truck as it passed through a remote border checkpoint from Thailand. When the truck stopped in the Cambodian district of Phnom Proek, the police pounced.

Inside, said Sar Theth, they found three cardboard boxes packed with $7.16 million in counterfeit hundred-dollar bills, the largest seizure of fake U.S. notes in Southeast Asia for about a decade and the biggest ever in Cambodia.

"If I close my eyes and touch it, I wouldn’t know it was fake," he said, rubbing one of the seized notes between thumb and forefinger at Battambang police headquarters.

According to the U.S. Secret Service, whose agents investigate financial crime worldwide alongside their better-known role as presidential bodyguards, the huge bust points to a well-oiled and growing counterfeit operation in neighboring Thailand, where identical notes had previously been seized.

The alleged involvement of Thai military personnel – the three men arrested were serving or former officers of the Royal Thai Navy – could also embarrass Prime Minister Prayuth Chan-ocha. A former general, Prayuth seized power in a May 22 military coup and has vowed to crack down on organized crime.


Posted at 8:43 AM (CST) by & filed under Jim's Mailbox.

Dear Wolfgang,

The reaction will be in excess of the cause, therefore unlimited intervention is a probability.



The article implies that the Fed will intervene in a market crash and will use whatever it takes to prevent it… $1 trillion, $5 trillion, $20 trillion.

Should this be the case, then we can expect mind boggling numbers for the price of gold.

Which camp are you in? Unlimited intervention, or not?

CIGA Wolfgang Rech

Will The Fed Let The Stock Market Crash Before An Election?
Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Anyone in their position with the tools at hand would not have any other real option other than to buy stocks in whatever quantity is needed to reverse the selling and blow the shorts out of the water.

Since I’m writing this on Sunday evening, if the Dow Jones Industrial Average opens down 1,000 on Monday morning, I’m going to look very foolish. Such is the risk of being contrarian. So what’s contrarian now–expecting a crash or expecting a bounce and rally?

Exactly what the sentiment consensus is right now is open to debate. Analysts expecting a stock market crash see those expecting a rebound as the consensus view.

But if we look at various measures of sentiment such as the Put-Call Ratio and, we find elevated levels of fear over the past few weeks. The consensus can hardly be said to complacent when the VIX index is over 20.




Continued QE?

CIGA Wolfgang

Dear Wolfgang,

Yes , regardless of what new name they give it or by no name.


Fed Officials Say Slow World Growth Could Delay Rate Rise
By Christopher Condon, Jeff Kearns and Ian Katz

Federal Reserve policy makers said a slowdown in the world economy could undermine the U.S. expansion and prompt them to delay raising interest rates.

"If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise," Vice Chairman Stanley Fischer said in a weekend speech at the International Monetary Fund’s annual meetings in Washington.

The remarks, echoed by other Fed officials, highlighted mounting concern about the improving U.S. economy’s ability to withstand foreign weakness and a strengthening dollar. Similar worries last week prompted investors to tip the Standard & Poor’s 500 Index to its weakest level since May and push oil prices into a bear market.



An interesting and formidable stance on the price of gold and its prospects from today on. Article provided courtesy of Monex.

CIGA Wolfgang Rech

From Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on October 6th:

”Gold — I can’t prove it yet but I believe the last decline in gold knocked out the last of the gold bugs and gave gold, technically, a clean slate.  I believe we saw the ultimate bottom of the gold bear market on Friday, and today the whole universe of gold is higher, and closing at its high.  Everything I have said about gold is also true about silver.  I believe this is the time to invest in gold and silver if you have not done so already.  If I am correct, gold should act like the release of a compressed spring.  Gold above 1300 would make me even more certain of my opinion, and gold above 1350 would represent a major buy signal.”

”I believe a new monetary system is in our future.  China and Russiaare combining to move the center of gold activity away from the US.  Who has been buying gold as the faithful dropped out of the picture?  All of the central banks, and particularly China.

The direction of international power has coincided with the flow of gold.  In its frenzy to pressure down the price of gold, the Federal Reserve has handed China a remarkable gift — the gift is cheap gold.  But as of today, I believe we are seeing the process of cheap gold becoming more expensive gold.  I’m betting that within six months physical gold will be scarce and hard to find.  In a sentence, I’m betting that the long bear market is gold has ended.”

Posted at 10:39 PM (CST) by & filed under In The News.



Russia dumping dollars to use to protect currency and falling oil prices
October 10, 2014 5:33 PM MST

As the United States expands its proxy war against Russia and the BRICS nations through a newly discovered secret deal with Saudi Arabia to force down global oil prices, Russia is firing back to this monetary attack against their currency and economy. On Oct. 10, a new report on Russian currency outflows shows that during the third quarter ending in September, the Eurasian state paid off a near record $53 billion in foreign debt, and sold off dollars to use as capital to stabilize their declining currency, and to protect their primary resource industry from the deflation America has caused through the dumping of excess oil into the market supply.

Some of this money was used earlier this week to support the declining Ruble as President Putin authorized the transfer of over $2 billion to be used directly to support the Russian currency. Additionally, the Russian central bank has already authorized funds to be set aside to supplement Russian corporations and oil industries should the need arise for liquidity and capital.

Despite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia’s current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012. – Zerohedge


Jim Sinclair’s Commentary

Who took the what?

More details on Fort Carson lockdown; long weekend interrupted
By Tom Roeder Updated: October 10, 2014 at 6:12 pm

The lockdown of a Fort Carson armor battalion dragged into its second day Friday as leaders continued to search for what sources call a lost "sensitive item."

The term refers to gear including weapons, ammunition and night vision goggles – items that cause high-level concern when missing. An undisclosed number of soldiers from the 800-soldier 1st Battalion of the 66th Armor Regiment were confined to unit buildings on Fort Carson during the search for the missing item.

Post officials throughout Friday declined to say what was lost.

"Some government property is missing," 4th Infantry Division spokesman Lt. Col. Armando Hernandez said.

The battalion recently wrapped up a two-week training exercise on the southern side of Fort Carson in which its soldiers packed a full array of gear including heavy machine guns, M-4 rifles, M-9 pistols, night vision goggles and Raven miniature drones. When units return from training they typically inventory gear to ensure that equipment doesn’t end up in the wrong hands.


China Opposes Western Sanctions Against Russia: Vice Premier
15:47 11/10/2014

MOSCOW, October 11 (RIA Novosti) – During a meeting with Russia’s Deputy Prime Minister Dmitry Rogozin Saturday, China’s Vice Premier Wang Yang stated that the West was wrong in imposing economic sanctions against Russia.

“The city of Sochi reflects the vitality of Russia. Therefore, we came to think that Western countries were wrong in imposing sanctions against Russia,” the Chinese vice premier said, adding that sanctions are “erroneous actions".

“We are certain that despite external factors of instability, the Russian people will be able to show determination and patience to overcome all sorts of current difficulties,” he added, asserting that “China opposes the West’s use of sanctions to exert pressure."

The Russian Deputy Prime Minister and the Chinese Vice Premier met during the 18th session of the Russian–Chinese Commission for the Preparation of Regular Meetings of the Heads of Governments, which is currently taking place in Sochi.

The United States and the European Union have imposed several rounds of sanctions against Russia’s largest banks, energy and defense companies, as well as certain individuals, over Moscow’s alleged involvement in the Ukrainian conflict, a claim Moscow has repeatedly denied.


Jim Sinclair’s Commentary

This did not take long.

Iraq asks for US ground troops as Isil threaten Baghdad
Islamic State jihadists move within eight miles of the Iraqi capital, sparking calls for America to return to the country
By Alastair Beach
6:18PM BST 11 Oct 2014

Iraqi officials have issued a desperate plea for America to bring US ground troops back to the embattled country, as heavily armed Islamic State militants came within striking distance of Baghdad.

Amid reports that Isil forces have advanced as far as Abu Ghraib, a town that is effectively a suburb of Baghdad, a senior governor claimed up to 10,000 fighters from the movement were now poised to assault the capital.

The warning came from Sabah al-Karhout, president of the provisional council of Anbar Province, the vast desert province to the west of Baghdad that has now largely fallen under jihadist control.

The province’s two main cities, Fallujah and Ramadi, were once known as “the graveyard of the Americans”, and the idea of returning there will not be welcomed by the Pentagon.

But were the province to be controlled by Isil, it would give their forces a springboard from which to mount an all-out assault on Baghdad, where a team of around 1,500 US troops is already acting as mentors to the beleaguered Iraqi army.


Kobani: time running out for hundreds of besieged civilians
UN warns of possible massacre if town falls after Isis takes control of government buildings
Emma Graham-Harrison in Mursitpinar
The Observer, Saturday 11 October 2014 13.00 EDT

Islamic State (Isis) fighters are closing in on the centre of besieged Kobani, where the Kurdish militia have sworn that they will fight to the death, and hundreds of desperate civilians are trapped in streets rank with the smell of rotting bodies.

The extremist group is trying to cut off the city’s border crossing into Turkey, its last link to the outside world, and penetrate the western enclave where the Kurdish People’s Protection fighters (YPG) are most firmly entrenched. Those units stopped at least five suicide car bombs sent to blast through their last layers of defence in the past two days, activists and politicians inside the city said. But Isis is throwing fighters and ammunition at the exposed road to the border, and if that falls it would be a devastating blow to the Kurdish units.

“If they cut off the border, then everyone inside is going to die,” said activist and journalist Mustafa Abdi, who lived in Kobani until a week ago and edits the website

“Isis can’t walk or shoot their way into the YPG strongholds, but if they can get their car bombs in it will do terrible damage. So far they have stopped them all with rocket-propelled grenades.”

The staunch defence has stemmed, but not stopped, Isis’s brutal advance through the city. On Friday the group took control of the government section of the city, including the main police station and town hall.


Jim Sinclair’s Commentary

Getting ready for the real thing.

U.S. and UK to test big bank collapse in joint model run
By Randall Palmer and Douwe Miedema
WASHINGTON Fri Oct 10, 2014 6:00pm EDT

Oct 10 (Reuters) – Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.

Treasury Secretary Jack Lew and the UK’s Chancellor of the Exchequer, George Osborne, on Monday will run a joint exercise simulating how they would prop up a large bank with operations in both countries that has landed in trouble.

Also taking part are Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.

"We are going to make sure that we can handle an institution that previously would have been regarded as too big to fail. We’re confident that we now have choices that did not exist in the past," Osborne said at the International Monetary Fund’s annual meeting.

Six years after the financial crisis, politicians and regulators around the globe are keen to prove they have created rules that will allow them to let a large bank go under without spending billions in taxpayer dollars.


Jim Sinclair’s Commentary

Fear of Ebola can be worse than Ebola because everyone will suffer.

From American airliners to British buses, number of Ebola false alarms mounts as panic grows over spread of deadly disease 
By Annabel Grossman for MailOnline

Fears surrounding the spread of Ebola have led to a string of false alarms by people fearing they have caught or been exposed to the killer disease.

As the Centers for Disease Control and Prevention (CDC) attempts to tackle the flood of worried Americans – with more than 800 Ebola false alarms coming in each day – a flurry of incidents have seen Hazmat officers boarding planes.

On the other side of the Atlantic, last night a Liverpool coach station found itself at the centre of an Ebola scare after a female passenger arriving from London collapsed and vomited, with others on the bus seen sprinting from the scene.

Medical staff boarded the coach in protective gear and removed the elderly woman, who is from Africa, wearing a protective garment and face mask.

The woman was taken to Royal Liverpool Hospital where doctors confirmed she did not have the disease. It is understood she was feeling feverish and also had stroke symptoms.


Posted at 10:27 PM (CST) by & filed under Jim's Mailbox.


Waste of time for those well within the safety of the 21 day incubation period. If you’re not sick at the screening you may be later after you mingle in the population for a number of days. Big biological experiment ongoing and we are the mice.


New York airport is first in US to screen passengers for Ebola symptoms
Jessica Glenza in New York, David Batty and agencies, Saturday 11 October 2014 20.14 BST

New York’s JFK airport on Saturday began screening passengers from the west African countries worst affected by Ebola, in an attempt to halt the international spread of the outbreak that has killed more than 4,000 people.

JFK is the first of five US airports to start enhanced screening of passengers from the countries worst hit by Ebola: checks will begin in the next few days at O’Hare in Chicago and at Newark, Washington DC’s Dulles and Atlanta.

Teams equipped with thermal guns will take the temperatures of travellers from Liberia, Sierra Leone and Guinea and ask them questions about their possible exposure to the virus as they enter the US.

“Already there are 100% of the travelers leaving the three infected countries are being screened on exit. Sometimes multiple times temperatures are checked along that process,” Dr Martin Cetron, director of the division of global migration and quarantine for the Centers for Disease Control and Prevention (CDC), said at a Saturday briefing at JFK.

Cetron added: “No matter how many procedures are put into place, we can’t get the risk to zero.”


Posted at 9:45 AM (CST) by & filed under In The News.

The majority is never right. Never, I tell you! That’s one of these lies in society that no free and intelligent man can ever help rebelling against. Who are the people that make up the biggest proportion of the population — the intelligent ones or the fools? I think we can agree it’s the fools, no matter where you go in this world, it’s the fools that form the overwhelming majority.
– Henrik Ibsen (1828-1906) Norwegian playwright, theatre director, and poet

Jim Sinclair’s Commentary

The barrel might be turning.

- Broad U.S. Economy Is Not Growing 
- Sharp Deterioration Likely Will Continue in Domestic and Global Financial-Market, Economic and Political Stability 
- Confluence of Crises: U.S. Economy, Stocks and Dollar

"No. 664: Market and Economic Instabilities" 

Fed Worried About Triggering Another ‘Taper Tantrum’
By Christopher Condon and Jeff Kearns Oct 8, 2014 6:38 PM ET

Federal Reserve officials meeting last month worried that changing their commitment to keep interest rates low for a “considerable time” would shake financial markets, minutes of the gathering show.

“Changes to the forward guidance might be misinterpreted as a signal of a fundamental shift in the stance of policy that could result in an unintended tightening of financial conditions,” according to a record of the Federal Open Market Committee meeting on Sept. 16-17 released today.

Officials opted instead to let their statement “evolve” at an undisclosed pace. Analysts said that although the minutes shed little light on when forward guidance would change, it was clear that officials wanted to avoid repeating missteps from last year.

“This likely reflects the scars from the ‘taper tantrum’ last summer,” when then-Fed Chair Ben Bernanke signaled that asset purchases might be scaled back sooner than investors expected, according to a note to clients from Bank of America Corp. Bernanke’s comments caused a jump in Treasury yields.

Fed officials last month questioned the signal their pledge was sending, and Dallas Fed President Richard Fisher and Philadelphia’s Charles Plosser dissented over the statement.

The meeting explored options on how to replace the forward guidance, including a numerical threshold based on the inflation outlook, as well as relying on quarterly Fed projections for the future path of the benchmark funds rate.

This debate yielded no conclusions on how the Fed would proceed, apart from acknowledging it would be a tricky process.



Jim Sinclair’s Commentary

It starts small but ends up national.

WOW! Angry Staff at EBOLA HOSPITAL Throw Gloves And Vent RAGE At Spanish PM


Jim Sinclair’s Commentary

Civil rights to be suspended in Connecticut.

Public Health Emergency Declared In Connecticut Over Ebola: Civil Rights Suspended Indefinitely
Tyler Durden on 10/10/2014 14:53 -0400

We warned a week ago of the various possibilities surrounding an Ebola outbreak in America, and today we get some degree of confirmation of a medical-based martial-law coming to the US. Governor Dan Malloy has declared a Public Health Emergency in Connecticut, authorizing the "isolation of any individual reasonably believed to have been exposed to the Ebola virus." Simply put, as we noted previously, the State of Public Health Emergency allows bureaucrats to detain and force-vaccinate people without due process – despite not one single case being found in CT. If there is a major Ebola pandemic in America, all of the liberties and the freedoms that you currently enjoy would be gone.


Jim Sinclair’s Commentary

This is exactly how Pol Pot got started. Isis is going to get increasingly serious in the region.

ISIS encroaches on ultimate prize in Iraq
Oct 10, 2014 12:41 PM EDT

BAGHDAD — Militants of the Islamic State of Iraq and Syria (ISIS) have infiltrated one of Baghdad’s outer suburbs, Abu Ghraib which is only eight miles from the runway perimeter of Baghdad’s international airport.

It’s cause for serious concern now that the Iraqi Defense Ministry has confirmed ISIS has MANPADs, shoulder fired anti-aircraft missiles.

The Iraqi army is still patrolling Abu Ghraib, but they play cat and mouse with the ISIS fighters who stage hit and run attacks on security forces.

It’s a mixed picture around the city. ISIS took over the city of Fallujah — only about 40 miles west of Baghdad — in January, and the Iraqi security forces have fought in vain for a year to force them out.

Instead, and in spite of weeks of U.S.-led airstrikes, ISIS has gradually extended its reach. The extremist group is now either present or in control of a huge swath of countryside, forming a 180-degree arc around the Iraqi capital from due north around to the west, and all the way to the south.


Jim Sinclair’s Commentary

This would be a massive PR victory for the Yuan. Expect Washington to pull out all the stops on pressure not to have the Yuan in Euro reserves.

ECB Weighing First Step to Buying Yuan for Foreign Reserves
By Stefan Riecher and Jeff Black Oct 10, 2014 1:29 PM ET

The European Central Bank will discuss next week whether to begin laying the groundwork to add the Chinese yuan to its foreign-currency reserves, according to two people with knowledge of the matter.

Governing Council members gathering in Frankfurt for their Oct. 15 mid-month meeting will consider the move, said the people, who asked not to be named because the discussions aren’t public. Should officials eventually decide to buy the currency, initial purchases would be small and might start in a year at the earliest, one of the people said.

Such a measure by the ECB would mark a major step in the internationalization of China’s currency, also known as the renminbi. While China is the world’s second-largest national economy, the yuan isn’t ranked among the most-held foreign reserve assets, according to data from the International Monetary Fund. The U.S. dollar leads at 61 percent of holdings.

The agenda of the Governing Council is confidential, an ECB spokesman said, declining to comment further on the matter.

Speaking in Washington today, former Bundesbank President Axel Weber predicted a greater international role for the yuan.

“The emergence of the renminbi will be a big factor,” he said. “You will have an appreciation of the renminbi.”

The ECB’s push comes against a backdrop of global central bank diplomacy to ease the way for China’s currency, after a series of swap agreements on emergency liquidity.


Jim Sinclair’s Commentary

There will be Ebola related medical staff problems.

Madrid hospital staff quit over Ebola fears
Carlos III hospital treating virus-hit nurse Teresa Romero Ramos suffers staff shortage amid concerns over training and safety
Ashifa Kassam in Madrid
The Guardian, Friday 10 October 2014 07.12 EDT

Carlos III hospital in Madrid is scrambling to contract extra personnel as worries about lack of training and safety standards have left some staff refusing to attend to possible Ebola cases.

Fourteen people are in quarantine, including four health workers who treated Teresa Romero Ramos, the Spanish nurse who contracted the virus after treating an Ebola patient repatriated from Sierra Leone. Seven people including two hairdressers who had given Romero a beauty treatment before she was diagnosed with Ebola turned themselves in late on Thursday to the isolation unit. None had so far tested positive for the disease except Romero, whose condition was described by the hospital as serious but stable. Her treatment has included injections with antibodies extracted from the blood of Ebola survivors.

While no official numbers were available, Elvira González of the SAE nurses’ union said fear of Ebola had caused some staff to refuse to treat certain patients, while others had resigned their posts.

Amid concerns over inadequate training and safety standards, one health worker told El País newspaper that many staff members were making excuses to avoid work. “They are saying they’ve got their period, that they’re getting dizzy, that they’re claustrophobic … People get anxious and they can’t work like that, being so nervous.”

Others worry about being stigmatised. “Their children aren’t being invited to birthday parties and their friends are cancelling joint vacation plans,” Juan José Cano of Satse, a nursing union member, told El País. “They’ve become known as the Ebola nurses. And it’s not fair.”



Jim Sinclair’s Commentary

Sanctions blow back. Who is benefiting in the end?

Lebanon to Strengthen Cooperation With Russia: Ambassador
15:43 10/10/2014

MOSCOW, September 10 (RIA Novosti) – Lebanon will continue its long-standing cooperation with Russia, Lebanon’s Ambassador to Russia, Chawki Bou Nassar, said in an interview with RIA Novosti Friday.

"Lebanon supports friendly relations with Russiaon all issues concerning the situation in Arab countries. In 2006, after the Israeli aggression in Lebanon, Russia sent technology to assist in the reconstruction and restoration of Lebanon," Nassar said.

The ambassador noted that Lebanon plans to purchase Russian weapons, using part of the remaining funds it has received from Saudi Arabia. The purchases were discussed during the visit of a Lebanese military delegation to Moscow last week.

"Saudi Arabia has allocated financial aid [to Lebanon]. We will be buying Russian weapons," Nassar said.

According to the ambassador, Lebanon will also be working on developing trade cooperation with Russia, especially in view of the economic sanctions that have been imposed against Moscow by the West.

"Of course Lebanon cannot fill the Russian market with fruits and vegetables [to the full], but we can supply them as a token of support for Russia," Nassar said.


Russia, UAE considering payments in national currencies
16:22 October 10, 2014 Interfax

Russia and the United Arab Emirates (UAE) are considering making payments in their national currencies, Industry and Trade Minister Denis Manturov and UAE’s Minister of Foreign Affairs Sheikh Abdullah bin Zayed Al Nahyan told journalists after a meeting. "This question was raised today for practically the first time ever, so it requires further review by specialists of both countries. But it has been added to the agenda and is being analyzed," Manturov said. Nahyan said the question of payments in national currencies was complex since the UAE’s currency, the dirham, is very closely connected with the dollar. "This creates added difficulties, but there are ways these difficulties can be overcome. From a political standpoint, the UAE is set on full cooperation with Russia. If there is the political will, then the technical difficulties can be overcome," he said.


Posted at 1:23 AM (CST) by & filed under General Editorial.

Dear CIGAs,

We are happy to announce the next upcoming Q&A session will be held in South San Francisco, CA.


Saturday, November 15th, 2014 from 10am-3pm


Holiday Inn San Francisco International Airport
275 South Airport Blvd
South San Francisco, CA 94080


A fee of $100.00US can be made in advance with any major credit card via the PayPal button on the webpage linked below (no PayPal account required). Please be sure to print out your transaction receipt as this will be your registration, confirmation and entry ticket to the meeting. No further confirmation will be sent.

Click here to purchase tickets…

If you prefer, you may alternatively pay $100.00US by cash, bank check or money order made payable to James Sinclair at the door. If you choose this option, you must pre-register via email with Anna Stoerzinger at [email protected]. Please be sure to note your name and number of seat(s) in your email. A confirmation will be sent to you within 5 business days to confirm this pre-registration.

We look forward to seeing you there!

Posted at 10:37 AM (CST) by & filed under In The News.

Medical Bill for First Person Diagnosed With Ebola in US Could Cost $500,000: Analyst
01:26 09/10/2014

WASHINGTON, October 9 (RIA Novosti) – The final medical bill for a Liberian native who was the first person to test positive for Ebola in the United States could range from $250,000 to as much as $500,000, a Washington D.C. health think tank analyst told RIA Novosti.

“It’s hard for hospitals to deal with these kinds of outlier situations,” said Dan Mendelson, the Chief Executive Officer of Avalere Health. “In the case of Ebola, there are the treatment costs, but also the costs of security, isolation.”

Another high cost that comes along with Ebola is disposing contaminated trash and equipment used to treat the patient.

Thomas Eric Duncan died fighting the disease at the Texas Health Presbyterian Hospital in Dallas, Texas on Wednesday where he was admitted for treatment on September 28.

Avalere Health further estimated that the average cost per day for treating a patient with an infectious disease is about $10,000 and that the average cost of treatment in the intensive care unit is roughly $14,000.

It is still not clear if the Dallas hospital will charge Duncan, and if they decide to do so, who will pay for it.

Secretary of State John Kerry urged the international community Wednesday to contribute more money to the Ebola response effort in West Africa. He said that although the region has had a lot of financial help already, that Ebola is a very costly disease that requires a lot of resources such as treatment units, test labs, medical evacuation capacity and technical support.

“The fact is more countries can and must step up in order to make their contributions felt,” said Kerry during a press briefing.


Jim Sinclair’s Commentary

This is the path to a reserve currency by popular demand.

China Outlines Plan to Ease Capital Controls, Boost Yuan Use
By Bloomberg News 
October 09, 2014 5:35 AM EDT

China outlined plans to allow citizens to invest in overseas stocks and property as well as let the nation’s companies sell yuan-denominated shares abroad, furthering efforts to internationalize its currency.

Chinese nationals will be able to buy equities and real estate via a Qualified Domestic Retail Investor scheme, Wang Dan, a deputy director general at the central bank, said today at a conference in Beijing. There are also talks under way to give locals access to yuan capital markets in Singapore and London, she said, without giving any start dates or sizes for the programs. Agricultural Bank of China Co. announced plans today to become the first company to offer yuan-denominated Global Depository Receipts in London.

China, which is also scheduled to start an exchange link between Hong Kong and Shanghai this month, is seeking to give its citizens more investment channels amid a slumping property market and increased risks from local wealth-management products. The world’s second-largest economy is also trying to promote use of the yuan, which ranked seventh for global payments in August from 12th a year earlier.

“It’s a continuation of yuan internationalization and capital-account liberalization,” said Yii Hui Wong, Singapore-based currency and rates strategist at BNP Paribas SA. “Singapore is a hub for Southeast Asia and the U.K. is in a different time zone altogether, connecting China to European investors. They won’t just have Hong Kong and be dependent on Hong Kong only.”


1.8 million fleeing ISIS in ‘deadly, life-threatening’ situation – UN
Published time: October 09, 2014 14:05

A total of 1.8 million people are in a “deadly, life-threatening situation” according to a UN report on Iraq. Their lives are in danger daily, while the influx of refugees is putting strain on locals – and schools have been delayed from opening.

The displaced people are being forced to take shelter wherever they can – even under bridges, and there are often not even blankets for them.

“I couldn’t bring anything with me,” refugee Sabria Suleiman told RT. “The only thing I have left is the children’s ID cards.”

Sabria’s and Ayham Suleiman fled with their family when radical Islamic State militants were attacking their settlement. They didn’t have time to take their belongings with them.

“We don’t really know what will happen. When we arrived here, we just followed other families to the school. We get no help from the authorities – we don’t even have blankets to keep us warm,” Marwan Murad Sabria, another member of the family, told RT.


Jim Sinclair’s Commentary

Sanctions blowback.

China plans to sign about 50 agreements with Russia
October 09, 9:25 UTC+4

BEIJING, October 9. /TASS/. Prime Minister of Chinese State Council Li Keqiang will visit Russia on October 12-14.

The two countries plan to sign around 50 inter-governmental, inter-departmental and corporate documents on different aspects of bilateral cooperation, Chinese Deputy Foreign Minister Cheng Guoping said.

“This will be his first visit to Moscow as the prime minister of Chinese State Council. We hope that this visit will promote stronger political trust, higher mutual support between Russia and China in the field of sovereignty and territorial integrity,” Cheng Guoping said. China also plans “to build up practical cooperation with Russia in aviation and space, energy, high-speed railways, finance, innovations and projects for infrastructure development,” he added. Beijing will “develop humanitarian exchanges, particularly during the Year of Youth Exchanges between Russia and China, as well as joint preparation for celebrations on the occasion of the 70th anniversary of the Victory in World War II in 2015.” “China intends to expand cooperation with Russia in international issues,” the country’s deputy foreign minister added.

During the visit, Li Keqiang will focus on developing energy cooperation with Russia, Cheng Guoping said. “Gas cooperation is an important aspect of Russian-Chinese energy cooperation. Russia and Chinese energy agencies are working closely on creating ‘a western route’ (for Russian gas supplies to China). We hope to reach progress in this issue this year,” the Chinese high-ranking diplomat noted.


Jim Sinclair’s Commentary

So it begins.

LaGuardia Airport cabin cleaners walked off the job claiming unsafe, unsanitary conditions
EXCLUSIVE: The workers, all of whom operate out of Terminal D, say they’re not properly equipped to handle the hazardous materials they regularly come into contact with — including blood, feces and hypodermic needles.
BY Rich Schapiro
Thursday, October 9, 2014, 12:38 AM

Fed up over what they say are unsafe and unsanitary working conditions, dozens of LaGuardia Airport cabin cleaners walked off the job Wednesday night.

The workers, all of whom operate out of Terminal D, say they’re not properly equipped to handle the hazardous materials they regularly come into contact with — including blood, feces and hypodermic needles.

“I have to deal with vomit, feces and a lot of chemicals, without proper equipment,” cleaner Johanna Cruz, 33 and from Queens, told the Daily News. “They give us gloves, but they might as well be made of paper because they rip so easily.”

Cruz and other workers complained they are transported to and from the planes in beat-up vans lacking seat belts. They receive little to no training for properly disposing of blood and other bodily fluids. And, they say, their pleas for better equipment are met with shrugs.

“They don’t care about our safety,” said Cruz, who like all of the striking workers is employed by Air Serv.


Posted at 6:13 PM (CST) by & filed under In The News.



Jim Sinclair’s Commentary

Totally outrageous. You might as well kill our kids.

Excalibur looks just like my Angel. You have no idea how dedicated dog people are. I would do anything to save my puppies.

They shoot Ebola dogs, don’t they? Outrage at Spain’s killing of infected nurse’s dog
Published time: October 08, 2014 17:56

The dog belonging to the Spanish nurse confirmed to have Ebola has been killed, despite a massive social media campaign and vigil by animal rights activists outside her flat.

The mixed-breed canine, called Excalibur, was finally put to sleep in the Complutense University of Madrid veterinary hospital on Wednesday at 14:30 local time, the Spanish daily El Mundo reports, citing sources at the university.

Sanitary authorities wearing special protective clothes forced their way into the home of Teresa Romero Ramos and her husband, Javier Limon, on Wednesday afternoon, after a judicial order from a Madrid court had granted special permission for entering the house, Spain’s EFE news agency reported.

The Madrid city government ordered the dog’s death Tuesday as a preventative measure to stop further infection.

Excalibur had been left home alone by the couple after they were both admitted to hospital Monday.


Jim Sinclair’s Commentary

We would never do anything like that, would we?

Census Bureau Worker Blows The Whistle On The Employment Report
October 8, 2014

When I spoke with this whistleblower earlier this year as part of my investigation of Census, she told me that hundreds of interviews that go into the Labor Department’s unemployment rate and inflation surveys would miraculously be completed just hours before deadline.   John Crudele, NY It’s pretty much been accepted for many years now that the economic data being reported by the Government is unreliable and fraudulently manipulated.  Toxicity + toxicity does not equal purification.   Not only does the Government manipulate the data to suit its needs – like reporting a sub-6% unemployment rate a month before mid-term national elections – but the data itself is one big fraud.

A whitleblower from the Denver Census Bureau office has opened up to the NY Post’s John Crudele.  I’m sure she took the story first to the Denver Post.  But the Denver Post is nothing more than a megaphone for whatever news the powers that be want the hoi polloi to ingest.  For instance, the Denver Post did not even report the story on the Goldman Sachs/Fed tapes.

At any rate, I encourage everyone to read the article linked at the top.  In a testament to the complete criminality that has engulfed our political and economic system, I’m sure this story will be swept under the rug and this whistleblower will be silenced.


Ebola virus: answering the 10 questions you were afraid to ask
Larry Elliott in Washington
The Guardian, Wednesday 8 October 2014 16.26 EDT

The president of the World Bank, Jim Kim, admitted on Wednesday that the international community had “failed miserably” in its response to the Ebola virus that has killed more than 3,800 people in west Africa and warned that the crisis now affecting Spain and the US was going to get much worse.

Amid signs that western governments were being forced to take the risks of a global pandemic more seriously, Kim said he wanted them to back a new $20bn (£12bn) global health fund that would be able to react instantly to emergencies.

“It’s late. It’s really late,” he said in an interview with the Guardian before the annual meeting of the Washington-based organisation this weekend.

“We should have done so many things. Healthcare systems should have been built. There should have been monitoring when the first cases were reported. There should have been an organised response.”

Kim’s warning that the global community was still not “moving fast enough” came as the Ebola virus claimed its first victim in the US and news of a case in Spain sent shares in travel and airline companies tumbling on stock exchanges.


FOMC Talks Down Dollar, Fears Growth Slowdown, "Considerable Time" Misunderstood
Tyler Durden on 10/08/2014 14:04 -0400

With the S&P down over 3% from September’s FOMC statement, the market needed some ‘good’ news from the Fed minutes to save the ‘wealth’ that has been created…




So The Fed fears bubbles, fears growth slowing down, and appears to be talking down the dollar. In other word, dovish minutes confirming the dovish statement was indeed dovish.

Pre-FOMC Minutes: S&P Futs 1936.50, 10Y 2.38%, USDJPY 108.75, Gold $1206

The last FOMC Statement and Minutes day performance…


Some of the key sections: on bubble fears:

Bankers in one District stated that, while they had eased the terms and conditions on loans in response to competition from other lenders, they had not taken on riskier loans. Some financial developments that could undermine financial stability over time were noted, including a deterioration in leveraged lending standards, stretched stock market valuations, and compressed risk spreads.


Ebola Scare Sends Dallas County Sheriff’s Deputy To Hospital
October 8, 2014 1:50 PM
Updated 4:30 p.m.

FRISCO (CSBDFW.COM) – First responders have transported a Dallas County Sheriff’s deputy to Texas Health Presbyterian Hospital to be monitored for Ebola as a precaution.

The patient, Michael Monnig, was transported from a Frisco Care Now facility where he was complaining of “stomach issues,” according to sources.

Monnig’s children told CBS 11’s Andrea Lucia that their dad woke up this morning feeling sore and a little nauseated.

“We were told by federal officials, county officials that you would have to come in direct contact with Duncan or direct contact with bodily fluids, and he did not,” said Monnig’s son, Logan, about the possibility of his dad contracting Ebola.  Logan said it’s a very scary time for his family, but they do not expect that his dad will test positive for the virus.

Monning was not one of the 48 people being monitored by federal, state and local health officials because he never had direct contact with the patient.  Monnig did enter the apartment where Duncan stayed after Duncan had been admitted to the hospital.


Jim Sinclair’s Commentary

Sanctions blow back.

German Industrial Output Drops Most Since 2009 in August
By Jana Randow  Oct 7, 2014 9:39 AM ET 

German industrial production (GRIPIMOM) fell more than economists forecast in August in the latest sign that the outlook for Europe’s largest economy is deteriorating.

Production, adjusted for seasonal swings, dropped 4 percent from July, when it expanded 1.6 percent, the Economy Ministry in Berlin said today. That’s the biggest decline since January 2009 and compares with a median estimate of 1.5 percent in a Bloomberg News survey.

Germany’s economy is losing momentum as sluggish growth in the euro area, its largest export market, and political tension with Russia weigh on confidence. The European Central Bank has enacted unprecedented stimulus to sustain the regional recovery while calling on governments to press ahead with structural reforms.

While “the setback in industrial production in August was a massive one,” there is “no reason to panic,” said Andreas Rees, chief German economist at UniCredit MIB in Munich. “German industrial activity will soften in coming months as already indicated by business sentiment but not tumble into the abyss. And no, there is no reason to dig up the R-word again.”

Weak economic data released in the past weeks have raised the specter of recession, commonly defined as two consecutive quarters of declining gross domestic product, after the German economy shrank in the second quarter.


Popular Movement in Switzerland Looks to Repatriate Gold and Increase Reserves

There is a peoples’ movement in Switzerland to repatriate their gold and increase the percentage of gold reserves. This story has received very little attention in the media, even within the precious metals community. It could have significant ramifications for the gold market, increasing central bank demand and putting upward pressure on the gold price.

This November 30th, a popular Swiss Gold Referendum is going to a vote. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, now it’s less than 8 percent.

If this vote goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.

Radio host Charles Goyette has spoken with Ron Paul about central banks at great length on his radio show. In the video below, he gives his input on the Swiss Gold Referendum.

The “Save our Swiss gold” referendum contains the following key elements:

The SNB should stop selling its gold.

The gold has to be stored in Switzerland.

Gold should represent at least 20% of the SNB assets

if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. This equates to half of the world’s annual production and they would have to compete with China to secure supplies. COMEX manipulators can keep the paper prices low for so long, but eventually the overwhelming demand for physical is going to blow up that fraudulent exchange.


"We Can’t Exclude The Possibility That Ebola Can Spread Through The Air," Expert Warns
Submitted by Tyler Durden on 10/08/2014 10:16 -0400

"At this point there is zero risk of transmission on flights," said CDC Director Dr. Thomas Frieden, supporting other public health officials who have voiced similar assurances, saying Ebola is spread only through physical contact with a symptomatic individual or their bodily fluids. However, as The LA Times reports, some scientists who have long studied Ebola say such assurances are premature – and they are concerned about what is not known about the strain now on the loose. Dr. C.J. Peters, who battled a 1989 outbreak of the virus, and who later led the CDC’s most far-reaching study of Ebola’s transmissibility in humans, said he would not rule out the possibility that it spreads through the air in tight quarters…"We just don’t have the data to exclude it."

As The LA Times reports, officials continue to stress how hard it is to get infected by Ebola…

"Ebola is not transmitted by the air. It is not an airborne infection,"said Dr. Edward Goodman of Texas Health Presbyterian Hospital in Dallas, where the Liberian patient remains in critical condition.

…Public health officials have voiced similar assurances, saying Ebola is spread only through physical contact with a symptomatic individual or their bodily fluids.

Yet some scientists who have long studied Ebola say such assurances are premature – and they are concerned about what is not known about the strain now on the loose. It is an Ebola outbreak like none seen before, jumping from the bush to urban areas, giving the virus more opportunities to evolve as it passes through multiple human hosts.

Dr. C.J. Peters, who battled a 1989 outbreak of the virus among research monkeys housed in Virginia and who later led the CDC’s most far-reaching study of Ebola’s transmissibility in humans, said he would not rule out the possibility that it spreads through the air in tight quarters.

"We just don’t have the data to exclude it," said Peters, who continues to research viral diseases at the University of Texas in Galveston.


Jim Sinclair’s Commentary

This is well ahead of schedule.

China Just Overtook The US As The World’s Largest Economy
Mike Bird

Sorry, America. China just overtook the US to become the world’s largest economy, according to the International Monetary Fund.

Chris Giles at the Financial Times flagged up the change. He also alerted us back in April this year that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market exchange terms, and in terms of purchasing power. On the purchasing power basis, China is overtaking the US right about now and becoming the world’s biggest economy.

We’ve just gone past that cross-over on the chart below, according to the IMF. By the end of 2014, China will make up 16.48% of the world’s purchasing-power adjusted GDP (or $US17.632 trillion), and the US will make up just 16.28% (or $US17.416 trillion):



Jim Sinclair’s Commentary

Resigning now will not prevent a legal look back.

Two leading HSBC directors quit in protest at tough new rules that will punish reckless bankers with jail terms
UK board member Alan Thomson is planning to leave at the end of this month while John Trueman, the deputy chairman, is preparing to resign
Regulator want senior banking executives to be criminally liable if bank fails because of their ‘reckless’ actions

By Daily Mail City & Finance

Published: 18:41 EST, 7 October 2014 | Updated: 09:10 EST, 8 October 2014

Two directors of HSBC’s operations in the UK have quit in protest ahead of tough new rules that could result in jail terms for reckless bankers.

Alan Thomson, who is on the board of the international bank’s UK subsidiary, is planning to leave at the end of this month – and John Trueman, the deputy chairman, is preparing to resign but has not yet formally done so.

The moves come as proposals for rules to make senior bankers more accountable were unveiled by the regulators.

The Prudential Regulation Authority is consulting on proposals until the end of this month under which senior staff could face criminal liability if their bank fails and they are subsequently found guilty of reckless misconduct.

Under the regime, which regulators want to be in force by January next year, the onus would be on bankers to prove they behaved appropriately.

Critics say this amounts to an overturning of the principle of innocent until proved guilty and claim banks will struggle to attract high quality directors.

Andrew Tyrie MP, chairman of the Treasury Committee, said: ‘A buck that does not stop with an individual often stops nowhere.’

The PRA has this week set out boardroom governance and legal requirements for the regime of ‘ring-fencing’ that will force banks to separate their casino operations from their retail arms.

The banks have been given until January to submit their plans for ring-fencing, which aims to protect depositors and taxpayers from collapses.