Posted at 8:13 PM (CST) by & filed under In The News.

What Happened to the Malaysian Airliner?
Paul Craig Roberts

Washington’s propaganda machine is in such high gear that we are in danger of losing
the facts that we do have.

One fact is that the separatists do not have the expensive Buk anti-aircraft missile system or the trained personnel to operate it.

Another fact is that the separatists have no incentive to shoot down an airliner and neither does Russia. Anyone can tell the difference between low-flying attack aircraft and an airliner at 33,000 feet.

The Ukrainians do have Buk anti-aircraft missile systems, and a Buk battery was operational in the region and deployed at a site from which it could have fired a missile at the airliner.

Just as the separatists and the Russian government have no incentive to shoot down an airliner, neither does the Ukrainian government nor, one would think, even the crazed extreme Ukrainian nationalists who have formed militias to take the fight against the separatists that the Ukrainian army is not keen to undertake–unless there was a plan to frame Russia.

One Russian general familiar with the weapon system offered his opinion that it was a mistake made by the Ukrainian military untrained in the weapon’s use. The general said that although Ukraine has a few of the weapons, Ukrainians have had no training in their use in the 23 years since Ukraine separated from Russia. The general thinks it was an accident due to incompetence.

This explanation makes a certain amount of sense and far more sense than Washington’s propaganda. The problem with the general’s explanation is that it does not explain why the Buk anti-aircraft missile system was deployed near or in a separatist territory. The separatists have no aircraft. It seems odd for Ukraine to have an expensive missile system in an area in which it is of no military use and where the position could be overrun and captured by separatists.



OSCE observers say they have access to Malaysian Boeing crash site in eastern Ukraine
July 20, 17:11 UTC+4

KIEV, July 20, /ITAR-TASS/. Representatives of the special mission of the Organization for Security and Cooperation in Europe (OSCE) in Ukraine do have access to the crash site of a Malaysian Boeing-777 in eastern Ukraine, a representative of the mission, Michael Bochurkiv, said on Sunday.

Earlier, the U.S. Department of State spokeswoman Jen Psaki expressed concern over the alleged failure of OSCE observers to reach the crash site.

Bochurkiv however said that the OSCE observers were accompanied by armed guards to the town of Torez located in the vicinity of the crash site. While in the town, they visited a railway station where there were 3-4 refrigerator railroad cars used to keep the bodies of the crash victims. He added however that due to objective reasons it was impossible to say accurately how many dead bodied had been found.

Earlier Prime Minister of the self-proclaimed Donetsk People’s Republic Alexander Borodai denied some media reports that observers from the OSCE were not permitted to come to the crash site of the Malaysian Boeing passenger airliner.

“This is an element of information war against us,” he said in an interview with Ekho Moskvy radio station, noting that “Fourteen OSCE observers have been working at the airliner’s crash site already for three days. In fact, on the first day they faced some restrictions in their movement. But we explained this by a very simple fact: we are responsible for their security, just for relative guarantees of security.”


First Detroit, Now Flint Warns Bankruptcy "Train Is Headed For The Cliff"
Tyler Durden on 07/19/2014 21:18 -0400

Flint may be Michigan’s second city to plunge into bankruptcy unless retirees accept cuts in health benefits that threaten to unravel a balanced budget. As Crain’s Detroit reports, Emergency Manager Darnell Earley (Flint’s third emergency leader since it was placed under state control in 2011) warned "If we have no ability to mitigate the cost of retiree health care, that’s going to make it very difficult for the city to remain financially stable over the next few years." As Eric Scorsone notes, "Flint’s at the forefront, but a lot of cities are on the same train, and that train is headed for the cliff."

As Crains Detroit reports,

As Detroit draws worldwide attention for its record $18 billion bankruptcy, Flint demonstrates the plight of U.S. cities where unfunded post-retirement costs rival or exceed pension liabilities. In Michigan alone in 2011, municipalities had nearly $13 billion in health-care liabilities for retirees, compared with about $3 billion for pensions. Flint is among 17 cities and school districts under some form of state control.

More than 80,000 Flint-area residents were employed by GM in 1978. Now, that number is about 7,500, according to a 2011 report by Michigan State University. In the past two years, the municipal workforce has been cut 20 percent and employees have taken a 20 percent pay cut.

Emergency Manager Earley warns…

Like Detroit, which a year ago this week filed the largest U.S. municipal bankruptcy, Flint has struggled with loss of population, jobs and revenue. The birthplace of General Motors Co. has only half its population of 1960.


The dollar’s 70-year dominance is coming to an end
Within a decade, greenback’s could be replaced as the world’s reserve currency
By Liam Halligan

5:30PM BST 19 Jul 2014

In early July 1944, delegates from 44 countries gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire. A three-week summit took place, at which a new system was agreed to regulate the international monetary and financial order after the Second World War.

The US was already the world’s commercial powerhouse, having eclipsed the British Empire several decades earlier. America was also on course to be among the victors of “Europe’s conflict”, even though its economy was largely unscathed by war. As such, Bretton Woods was US-dominated and produced a settlement largely on US terms.

Seventy years ago this week, that fateful summit ended. Its close marked the moment the dollar’s unquestionable supremacy was secured. Since then, global commerce has been conducted largely in dollars and leading economies have held the greenback as their primary reserve currency.

The same system remains intact today, with the lion’s share of commercial settlements worldwide still clearing the US banking system – even if the parties involved have nothing to do with the States.

The dollar’s hegemony continues to be cemented, meanwhile, by the operations of the International Monetary Fund and World Bank. Founded at Bretton Woods, they’re both Washington based, of course, and controlled by America, despite some Francophone window-dressing.


Jim Sinclair’s Commentary

Geopolitics go from hot to scalding.

Israel Ramps Up Gaza Offensive After 13 IDF Soldiers Killed
By Ben Plesser, James Novogrod and Elisha Fieldstadt

Thirteen Israeli troops were killed overnight Sunday in Gaza, according to the Israeli Army, sparking the declaration that Israel was sending additional forces to the ground to "combat terror."

An armored troop carrier which was moving into the neighborhood of Shejaia took a direct hit from a shoulder-launched anti-tank missile, leaving seven Israeli soldiers dead, an Israeli security source told NBC News. Six more Israeli soldiers were killed in the fighting that followed, the source said. Fifty-two Israelis were injured in the missile launch and fighting, and eleven of the injuries were serious.

The Israeli military announced a two-hour "humanitarian hiatus" on Sunday afternoon local time but the window of peace did not last long. Both sides blamed the other for violating it. Israeli shelling on Sunday left more than 70 Palestinians dead, including women and children.

The double-digit death toll on both sides marked the deadliest day in the conflict since Israel started an air offensive on July 8.

The increased presence of Israeli troops were sent to Gaza to "establish a reality in which Israeli residents can live in safety and security," according to an Israel Defense Forces statement.


Recovery Of Malaysian Airlines Black Box Caught On Tape: Separatists To Hand Over To International Delegation
Tyler Durden on 07/20/2014 10:20 -0400

With the rabbit hole of conspiracies getting deeper by the hour, video has emerged showing what appears to be the "black box" flight data recorder from Malaysia Airlines Flight MH17 being taken from the crash scene. As NBC reports, the men in the video are wearing Ukrainian Emergency Ministry uniforms, but a senior Ukrainian official told a news conference Sunday that rebels had taken the black boxes. This fits with reports from The Hill that pro-Russian separatists have located the black boxes for the downed Malaysia Airlines passenger jet and will hand them over to international authorities, according to separatist leader Alexander Borodai. With the US having offered more "proof" that Russia was involved, perhaps some facts from the Black Box will help clarify details in this dreadful situation… though we are not confident.

As NBC reports – recorded on Friday, the footage shows rescue workers carrying the distinctive bright orange device through a wheat field in eastern Ukraine’s Donetsk region. The voice of a man who is not shown in the video can be heard saying "flight recorder" in Russian.


Serious Fraud Office set to launch criminal probe into forex rigging
The SFO is expected to announce a criminal inquiry into traders’ alleged manipulation of the £3 trillion-a-day currency markets as early as this week
By Harriet Dennys, City Diary Editor
12:22PM BST 20 Jul 2014

The Serious Fraud Office is poised to launch the first criminal investigation into alleged rigging of the £3 trillion-a-day foreign exchange markets at leading City banks.

The financial watchdog is expected to announce the move as early as this week, according to reports, raising the spectre of further multimillion-pound fines for Britain’s biggest banks over their behaviour during and after the financial crisis.

Investigators are expected to examine whether individual traders personally benefited by manipulating benchmark forex prices. It is claimed that traders colluded via online chatrooms in groups with names such as the Bandits’ Club, the Dream Team and the Cartel.

The SFO’s criminal inquiry into alleged currency markets rigging in London, home to more than 40pc of the world’s foreign exchange trading, will join global investigations into forex market abuse by watchdogs across Europe, Asia, and the US.

The UK’s principal financial regulator, the Financial Conduct Authority, launched an investigation into global currency markets last October.


Malaysian jet tragedy propagandized – Ron Paul
Published time: July 19, 2014 03:38

Referring to the tragic downing of a Malaysian Airlines plane over eastern Ukraine, former Texas congressman Ron Paul warned against jumping to conclusions over the culprits.

Drawing parallels between the potential for a Russian-made missile system’s connection to the attack of the passenger jet on Thursday over the restive Donetsk region of Ukraine and the capture of US-made weapons by Islamist insurgents in Iraq, Paul pointed out that the missile’s potential source of manufacture was largely immaterial.

“That may well be true, but guess what, ISIS has a lot of American weapons," said Paul. "We sent weapons into Syria to help the rebels and al-Qaida ends up getting it — it doesn’t mean that our American government and Obama deliberately wanted ISIS to get American weapons."

"So who gets the weapons is a big difference between how they got them and what happened and what the motivations were," Paul added. "So even if it was a Russian weapon — doesn’t mean a lot."

Speculation of direct involvement by the Kremlin, whether directly or through “proxies” in the form of pro-Russian militia in Ukraine, in particular seems propagandized, Paul told NewsMax on Friday.

Unverified video footage has been circulated as proof of involvement by Ukrainian militia members, though the aircraft’s black boxes have yet to be retrieved, and there remain many questions unanswered as investigators have trickled into the crash site.


Xi expects more interactions between NPC, Argentine parliament
2014-07-20 09:05 Xinhua Web Editor: Wang Yuxia

Chinese President Xi Jinping said Saturday he hoped the legislative bodies of China and Argentina could enhance exchanges and mutual learning so as to help promote bilateral ties.

The visiting Chinese leader expressed his hope when meeting Amado Boudou, Argentina’s vice president and head of the Senate, or the upper house of the Argentine National Congress, and Julian Dominguez, president of the Chamber of Deputies, the lower house.

The Argentine National Congress embodies the country’s public opinion, and its support to developing the China-Argentina ties has cemented China’s determination for friendly cooperation, Xi said.

He spoke highly of the exchanges between China’s National People’s Congress (NPC) and the Argentine National Congress, which helped enrich the content of bilateral relations.

According to Xi, he has had resultful talks with his Argentine counterpart Cristina Fernandez de Kirchner on Friday, when they decided to upgrade the two countries’ relationship to a comprehensive strategic partnership.

"The China-Argentina relations now stand at a new starting point in history," he stressed.

The two sides should see each other as development opportunities and partners, boost mutually beneficial cooperation in an effort to promote common development, Xi said.


Posted at 8:28 PM (CST) by & filed under In The News.

China tells U.S. to stay out of South China Seas dispute
By Ben Blanchard
BEIJING Tue Jul 15, 2014 2:54am EDT

(Reuters) – China told the United States on Tuesday to stay out of disputes over the South China Sea and leave countries in the region to resolve problems themselves, after Washington said it wanted a freeze on stoking tension.

Michael Fuchs, U.S. deputy assistant secretary of state for Strategy and Multilateral Affairs, said no country was solely responsible for escalating tension in the region. But he reiterated the U.S. view that "provocative and unilateral" behaviour by China had raised questions about its willingness to abide by international law.

China claims 90 percent of the South China Sea, which is believed to contain oil and gas deposits and has rich fishery resources. Brunei, Malaysia, the Philippines, Vietnam and Taiwan also lay claim to parts of the sea, where about $5 trillion of ship-borne trade passes every year.

China’s Foreign Ministry repeated that it had irrefutable sovereignty over the Spratly Islands, where most of the competing claims overlap, and that China continued to demand the immediate withdrawal of personnel and equipment of countries which were "illegally occupying" China’s islands.

"What is regretful is that certain countries have in recent years have strengthened their illegal presence through construction and increased arms build up," the ministry said in a statement.

China would resolutely protect its sovereignty and maritime rights and had always upheld resolving the issue based on direct talks with the countries involved "on the basis of respecting historical facts and international law", it added.


Chinese Commodity Contagion Leads To First Letter Of Credit Settlement Failure
Tyler Durden on 07/18/2014 17:44 -0400

At the heart of the China Commodity Financing Deals (CCFD) is the ability to leverage a letter of credit on the basis that there was some collateral somewhere that backed the risk of this rehypothecatable ‘money’. Until now, the biggest concern has been "where’s my copper, nickel, gold, etc..?" as the Qingdao ponzi scheme is unveiled; but, as Metal Bulletin reports, the contagion from the exposure of CCFDs ponzi has now hit Western banks. At least one western bank has stopped discount financing of copper into China after Industrial & Commercial Bank of China (ICBC) applied for the right not to settle a letter of credit it issued earlier this year, as a result of the Qingdao investigations. In other words the collateral chains were just snapped…

As Metal Bulletin reports,

This is a new development in the fallout from the Qingdao warehousing scandal, in which Chinese firm Decheng Mining allegedly used false warehouse receipts to gain multiple loans from banks.

ICBC’s request for the right not to make this payment is a move that is lawful in the country in cases where there are concerns about fraud.

It is the latest legal move by parties that may have exposure to the Qingdao fraud to try to protect their interests, sources said.


Posted at 9:33 PM (CST) by & filed under General Editorial.

Dear CIGAs,

We are looking for your feedback on holding a Q&A Session in Nashville, Tennessee. The tentative date is September 20th.000

If you are interested in attending any of these sessions, please email us at [email protected] and let us know if you are interested in attending.

Thanks for your feedback and we look forward to seeing you there!

Dan Duval
JSMineset Editor

Posted at 9:30 PM (CST) by & filed under In The News.

Incubating a non-dollar architecture
The launch of the BRICS bank can now give the member countries confidence to experiment with other geoeconomic ambitions. Incubating a non-dollar financial architecture can be the next goal. There are existing models to build upon but India will need smart economic diplomacy to secure its interests
BY Akshay Mathur

After two years of intense negotiation, the BRICS leaders finally launched the New Development Bank on July 15 at the Sixth BRICS Summit in Fortaleza, Brazil. The bank’s focus will be on infrastructure and sustainable development projects through loans, guarantees, credits and equity investments. The decision to share the initial subscribed capital of $50 billion and the resulting voting rights equally, reflects a commitment by the five countries to view each other with equity[1].

The launch of the bank will now give the BRICS five confidence to experiment with other geoeconomic ambitions. Chief among them is the desire to conduct trade in local currencies. Russia is moving to denominate its energy assets in roubles, China is pushing for the renminbi to become the global currency of choice for trade payments, and India was creatively using rupee accounts to hold payments for Iran after the U.S. and EU imposed financial sanctions on Iran.

Can the mandate of the new bank be extended to incubate a non-dollar financial architecture for emerging countries? If so, what would the design look like?

In its most basic form, this architecture would need three components, one each to support trade, settlements and investments in the local currencies of the five countries– rupees, rouble, renminbi, rial, rand.

1. A mechanism that enables trade in local currencies. Since none of the five currencies are global reserve tender, the respective central banks will have to make their currencies available to the group. Article 24 of the BRICS bank does provide for financing of projects in local currencies[2]. However, for enabling trade, the bank will have to enable currency swaps between the central banks or activate the Multilateral Agreement on Extending Credit in Local Currencies signed at the 4th BRICS Summit in New Delhi in 2012[3].

China has been experimenting with such swaps bilaterally to push for greater use of the renminbi. It has swaps with 21 countries including Russia and Brazil, denominated in renminbi worth up to RMB 2,600 billion ($420 billion) and is encouraging partner countries to pay for their imports from China in renminbi[4]. Brazil has been experimenting with conducting trade with Argentina in rial and pesos through an agreement inked in 2008[5].



Group’s political influence is growing
2014-07-17 09:08China DailyWeb Editor: Wang Fan

The Fortaleza summit of the BRICS leaders is a milestone. For the first time, the meeting of the group’s five members is not merely a business forum but is branded with strong political elements.  [Special coverage]

Global politics – including unrest in Iraq and Ukraine – are part of the summit discussions.

The political aspects are reflected in the Fortaleza Declaration issued by the leaders on Tuesday.

The proportion of the agenda that is devoted to political elements greatly outweighs that of previous years. For the first time the discussions include political coordination. The first part of the leaders’ private dialogue dealt with global governance and regional crises. The second part deals with economic and financial cooperation.

Observers said the inclusion of the political agenda would give developing nations an increasingly united voice, and thus more clout on major global issues.

To that end, the sixth BRICS summit has embarked on a course that positions the group for a bigger role in both the political and economic spheres of the world, and to compete with Western countries for an equal voice.

The BRICS nations account for 29.6 percent of the world’s territory, and more than 42 percent of its population. Last year, the members’ combined GDP was 21 percent of the world’s total. Despite slowing growth, the members’ economies have expanded twice as fast as those of developed countries.

Understandably, after building strong economic bonds, the BRICS group wants to see a new international political architecture to serve their long-term strategic interests.


US Treasury Admits Collateral Problem In Bond Market; Considers Issuing Ultra Long-Dated Bonds
Tyler Durden on 07/18/2014 12:18 -0400

We noted yesterday once again that The Fed was out en masse demanding investors sell their bonds because "bonds are in a bubble" but not stocks.The reason – as we have explained in great detail – is the repo market is broken due to massive collateral shortages (thanks to the Fed). Today, the Fed admitted it has a problem…


The bottom line is – The Treasury wants to know why all the dealers are so short bonds (even as it urges ‘investors’ to sell). Furthermore, it is surveying dealers over the need to issue bonds of greater maturity than 30 years in order to fulfill collateral needs.

Via Bloomberg

The U.S. Treasury Department is asking bond dealers whether it should consider issuing a security with a maturity exceeding 30 years.

“Please comment on the demand for long-duration sovereign products,” the department said in a quarterly survey of dealers released today in Washington. “Should Treasury consider issuing a security with a maturity greater than 30 years?”

The Treasury also asked the dealers to explain the causes for an increase recently in “fails-to-deliver” in the market for U.S. government debt. The survey was released ahead of meetings planned for July 31-Aug. 1.

As we explained previously, there is a massive collateral shortage worldwide thanks to massive central bank purchases…

*  *  *

But why do I care about some archaic money-market malarkey? Simple, Without collateral to fund repo, there is no repo; without repo, there is no leveraged positioning in financial markets; without leverage and the constant hypothecation there is nothing to maintain the stock market’s exuberance (as we are already seeing in JPY and bonds).


Posted at 8:31 PM (CST) by & filed under Jim's Mailbox.

Dear Mr. Sinclair,

Lest anyone doubt the future of the dollar.

How true that a picture is worth a thousand words.

Thanks for all that you do.


BRICS bank to be headquartered in Shanghai
Updated: 2014-07-16 02:33

FORTALEZA, Brazil – The emerging-market bloc of BRICS on Tuesday announced plans to establish a development bank and a contingent reserve arrangement (CRA).

The five members of the group – Brazil, Russia, India, China and South Africa – laid out the designs of the New Development Bank (NDB) and the CRA in a declaration released following their sixth summit in this Brazilian city.

The NDB, to be headquartered in Shanghai, will have an initial authorized capital of 100 billion US dollars, and its initial subscribed capital of 50 billion dollars will be equally shared among founding members, according to the Fortaleza Declaration.

The Africa Regional Center of the NDB will be established in South Africa concurrently with the headquarters, added the document.

The CRA, with an initial size of 100 billion dollars, "will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements," said the declaration.


Posted at 11:44 AM (CST) by & filed under In The News.

Housing Starts Tumble, Miss Most Since January 2007; Permits Have Biggest Two-Month Plunge Since Lehman
Tyler Durden on 07/17/2014 08:55 -0400

"Epic disaster." Those two words best explain what just happened with US housing starts and permits in June.

Those who want a slightly more detailed narrative of what the Department of Commerce just reported here it is: in June housing starts were expected to print at a solid 1020K, to validate the sustainable "recovery." Instead, what happened was that the May downward revised number of 985K, which was a consensus beating 1001K last month, crashed to 893K, a drop of 92K which was the biggest since the January "polar vortex" effect, the biggest miss to permaoptimistic expectations since January 2007, and which brought the total number of starts to the lowest level since September 2013. Was it the harsh weather’s fault this time too?


Biggest miss since January 2007!


The reason for the collapse: a plunge in both single and multi-family starts, so one can’t blame the end of Wall Street’s distressed buying frenzy for this one. In fact, single-family starts cratered to 575K – the lowest since November 2012!


Insider Trading and Financial Terrorism on Comex
July 16, 2014
Paul Craig Roberts and Dave Kranzler

July 16, 2014. The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.

As we explained in previous articles on this subject, the price of gold is not determined in markets where physical gold is bought and sold but in the paper futures market where contracts trade and speculators place bets on the price of gold. Most of the contracts traded on the Comex futures market are settled in cash. The value of the contracts used to short gold and drive down the price is well in excess of the actual amount of physical gold that is kept on the Comex and available for delivery. One might think that regulators would pay attention to a market in which the value of contracts outstanding exceeds by several multiples the amount of physical gold available for delivery.

The Comex gold futures market trades 23 hours per day on a global computer system called Globex and on the NYC trading floor from 8:20 a.m. EST to 1:30p.m. EST (the 8:30 a.m. opening time on the face of the graph below is a draftsman’s error). The Comex floor trading session is the highest volume trading period during any 23 hour trading period because that is when most of the large U.S. financial institutions and other users of Comex futures (jewelry manufactures and gold mining companies) are open for business and therefore transact their Comex business during Comex floor hours in order to achieve the best trading execution at the lowest cost.

The big hedge funds primarily trade gold futures using computers and algorithm programs. When they buy, they set stop-loss orders which are used to protect their trading positions on the downside. A “stop-loss” order is an order to sell at a pre-specified price by a trader. A stop-loss order is automatically triggered and the position is sold when the market trades at the price which was pre-set with the stop-order.

The bullion banks who are members and directors of Comex have access to the computers used to clear Comex trades, which means they can see where the stop-loss orders are set. When they decide to short the market, they start selling Comex futures in large amounts to force the market low enough to trigger the stop-loss orders being used by the hedge fund computers. For instance, huge short-sell orders at 2:20 a.m. Monday morning triggered an avalanche of stop-loss selling, as shown in this graph of Monday’s (July 14) action (click on graph to enlarge):


In the graph above, the first circled red bar shows the flash crash that was engineered at 2:20 a.m. EST, a typically low-volume, quiet period for gold trading. 13.5 tonnes of short-sales were unloaded into the Comex computer trading system. The second circled red bar shows a second engineered flash-crash right before the Comex floor opened at 8:20 a.m. EST. This was triggered by sales of futures contracts representing 27.5 tonnes of gold. A third hit (not shown) occurred at 9:01 a.m. This time contracts representing 40 tonnes of gold hit the market.


Gold Manipulators are Desparate
From Egon von Greyerz

With virtually empty gold vaults, the central banks and bullion banks are now becoming desperate.

The action we are seeing in the paper gold market with the recent $50 takedown is yet more proof of the corner that the gold manipulators have put themselves into by having virtually no physical gold left.

A rising gold price is dangerous for the manipulators. This would inevitably lead to more physical demand, something that would be disastrous for the manipulators. As the holders of paper gold begin to realise that neither Comex nor the bullion banks or the Central banks have a fraction of the gold required to satisfy the gold paper claims, they will demand delivery. With the paper gold market being up to 100 times the physical market, there will of course be nowhere near the gold available at current prices to satisfy the outstanding paper claims.

The gold manipulators are going to lose this game. This is a certainty. The only question is when. They have managed to frighten investors by manipulating the price down substantially in the last few years. In spite of that gold has gone from $250 in 1999 to $1,300 today.

The reason why the manipulators now are desperate and that we are getting nearer to a cataclysm is that physical demand has been at very high levels in the last few years mainly due to substantial buying from Asia and in particular China. This has led to the physical gold in the vaults of the bullion banks and central banks migrating from the West to the East.

As both the world economic and geopolitical situation deteriorates this autumn, we are likely to see major changes in markets. As the dollar comes under pressure, the precious metals will be major beneficiaries. This will lead to the beginning of the end of the manipulation in the paper gold and silver markets and strongly rising gold and silver prices.

Dr. Paul Craig Roberts and Dave Kranzler have just published an excellent commentary, with some very telling charts, on how the gold market is being manipulated.

“The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.”…

Please go to to read the full ‘ must read’ article.

You may view this item at

Egon von Greyerz

Malaysia Airlines Jet Crashes in Ukraine, May Have Been Shot Down

MOSCOW — A Malaysia Airlines Boeing 777 with nearly 300 people aboard crashed in eastern Ukraine near the Russian border on Thursday, the Ukraine government and a regional European aviation official reported, and the Interfax news agency said it had been shot down.

Ukraine’s president, Petro O. Poroshenko, said in a statement that he was calling for an immediate investigation of the crash. He did not rule out that it might have been shot down.

A regional airline official said the plane had been flying at about 33,000 feet when radar trackers lost it over eastern Ukraine near the Russian border.

Eastern Ukraine has been roiled for months by a violent pro-Russian separatist uprising in which a number of military aircraft have been downed. But this would be the first commercial airline disaster resulting from the hostilities in Ukraine.

Malaysia Airlines, still reeling from the mysterious loss of another Boeing 777 flight in March, said it had lost contact with the flight, MH17, from Amsterdam to Kuala Lumpur over Ukraine but offered no further details immediately. Prime Minister Najib Razak of Malaysia said in a Twitter post that he was “shocked by reports that an MH plane crashed. We are launching an immediate investigation.”



Malaysian Plane ‘Shot Down With 295 On Board’

A Boeing 777 travelling from Amsterdam to Kuala Lumpur reportedly comes down in Ukraine, close to the Russian border.

A Malaysian passenger plane with 295 people on board has been shot down as it flew above eastern Ukraine, according to aviation sources.

The plane, which is believed to have been flying from Amsterdam to Kuala Lumpur, was travelling at an altitude of 10km (6.2 miles) when it was shot down, Russia’s Inferfax reported.

The aircraft, reportedly a Boeing 777, was brought down by a ground-to-air missile, an adviser to the Ukrainian interior ministry quoted by the news agency said.

A spokesman for Malaysian Airlines confirmed it had lost contact with flight MH17, which departed from Amsterdam at 12.14am local time.

The flight disappeared from radar as it flew over Ukrainian airspace, he said.

Sky’s Katie Stallard, in Moscow, said media reports suggest the plane came down in the Donestk region, where there has been recent heavy fighting amid continuing tensions between Russia and Ukraine.


Posted at 11:36 AM (CST) by & filed under Jim's Mailbox.


The frequency of the term Bail-In and Resolution has increased on the Canadian news wires as of late. Canada, It’s coming, and coming fast!


"The CBIA also wrote authorities including Finance Minister Joseph Oliver and Bank of Canada Governor Stephen Poloz to ask that more clarity be provided on the “bail-in framework” that addresses requiring that bondholders convert certain debt to equity if a bank is close to insolvency."

Click here to read the full article…

CIGA Perry

Posted at 11:51 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The latest from John Williams’

- Shifting Production Detail Indicated Still Weaker First-Quarter GDP, Suggested Slowing Second-Quarter Inventory Growth (a GDP Negative)
- Volatile PPI Resumed Upswing in Inflation Reporting

"No. 641: June Industrial Production, Producer Price Index"

Did the Other Shoe Just Drop? Big Banks Hit with Monster $250 Billion Lawsuit in Housing Crisis
Posted on July 16, 2014 by Ellen Brown

For years, homeowners have been battling Wall Street in an attempt to recover some portion of their massive losses from the housing Ponzi scheme. But progress has been slow, as they have been outgunned and out-spent by the banking titans.

In June, however, the banks may have met their match, as some equally powerful titans strode onto the stage. Investors led by BlackRock, the world’s largest asset manager, and PIMCO, the world’s largest bond-fund manager, have sued some of the world’s largest banks for breach of fiduciary duty as trustees of their investment funds. The investors are seeking damages for losses surpassing $250 billion. That is the equivalent of one million homeowners with $250,000 in damages suing at one time.

The defendants are the so-called trust banks that oversee payments and enforce terms on more than $2 trillion in residential mortgage securities. They include units of Deutsche Bank AG, U.S. Bank, Wells Fargo, Citigroup, HSBC Holdings PLC, and Bank of New York Mellon Corp. Six nearly identical complaints charge the trust banks with breach of their duty to force lenders and sponsors of the mortgage-backed securities to repurchase defective loans.

Why the investors are only now suing is complicated, but it involves a recent court decision on the statute of limitations. Why the trust banks failed to sue the lenders evidently involves the cozy relationship between lenders and trustees. The trustees also securitized loans in pools where they were not trustees. If they had started filing suit demanding repurchases, they might wind up sued on other deals in retaliation. Better to ignore the repurchase provisions of the pooling and servicing agreements and let the investors take the losses—better, at least, until they sued.


China financials dominate in EM debt issuance
By Thomas Hale and Christopher Thompson

China’s financial institutions are issuing more internationally-marketed debt than their counterparts in any other emerging economy as the country’s rapidly evolving financial sector continues to ramp up its global presence….

“China is simply moving towards its natural weight in international capital markets,” said Demetrio Salorio, global head of debt capital markets at Société Générale. “This is not just a spike – the proportion of bonds will continue augmenting as a proportion of emerging market debt.”

So far this year, Chinese financials have issued $16.9bn in internationally marketed issuance – already higher than the $9.2bn raised over the whole of last year. Internationally marketed issuance from Chinese financials was less than $1bn in 2008.

Most major Chinese banks have existing tier-1 capital adequacy ratios of at least 9.5 per cent, according to CLSA, meeting Basel III requirements. But many analysts believe more cash will need to be raised over coming years.


Iraqi forces withdraw from Tikrit offensive
Jul. 16, 2014 | 08:56 AM (Last updated: July 16, 2014 | 01:27 PM)

BAGHDAD: Iraqi forces have withdrawn from the militant-held city of Tikrit after their new offensive met heavy resistance, in a blow to the government effort to push back Sunni insurgents controlling large parts of the country.

The failure highlights the difficulties of Baghdad’s struggle to recapture territory from the insurgents who seized Mosul, Tikrit and other cities last month in a rapid offensive which threatens to fragment Iraq on ethnic and sectarian lines.

The setback came as Iraqi politicians named a moderate Sunni Islamist as speaker of parliament Tuesday. That was a long-delayed first step towards a power-sharing government urgently needed to confront the militants, who are led by the Al-Qaeda offshoot Islamic State of Iraq and Greater Syria (ISIS).

It is unclear if the election of Salim al-Jabouri as speaker will break the broader deadlock over Prime Minister Nouri al-Maliki’s bid to serve a third term. He has ruled since the April election as a caretaker.

Government troops and allied Shiite volunteer fighters retreated from Tikrit before sunset Tuesday to a base 4 km south after coming under heavy mortar and sniper fire, a soldier who fought in the battle said.


Expected Microsoft Layoffs Could Top 5,800, Report Says
Jul 15th 2014 6:02AM
By Supriya Kurane

Microsoft (MSFT) is planning its biggest round of job cuts in five years as the software maker looks to integrate Nokia Oyj’s handset unit, Bloomberg reported, citing people with knowledge of the company’s plans.

The reductions, expected to be announced as soon as this week, could be in the Nokia unit and the parts of Microsoft that overlap with that business, as well as in marketing and engineering, Bloomberg reported.

Since absorbing the handset business of Nokia this spring, Microsoft has 127,000 employees, far more than rivals Apple (AAPL) and Google (GOOG) Wall Street is expecting Chief Executive Officer Satya Nadella to make some cuts, which would represent Microsoft’s first major layoffs since 2009.

The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, the report said.

Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, and among software testers, while other job cuts may result from changes Nadella is making to the engineering organization, Bloomberg reported.

Last week, Nadella circulated a memo to employees promising to "flatten the organization and develop leaner business processes" but deferred any comment on widely expected job cuts at the software company.


Bron Suchecki: GLD worries about failure of unallocated gold
Submitted by cpowell on 07:09AM ET Wednesday, July 16, 2014. Section: Daily Dispatches
10:08a ET Wednesday, July 16, 2014

Dear Friend of GATA and Gold:

The Perth Mint’s Bron Suchecki reports that gold exchange-traded fund GLD is proposing an amendment to its procedures that expresses concern about the reliability of unallocated gold.

Suchecki writes: "Why the need to clarify this now? Is there something the World Gold Council (which sponsors GLD) knows about the state of the market that didn’t exist before?"

Suchecki’s commentary is headlined "GLD Amendment Refers to ‘Unforeseen Reasons’ for Unallocated Failure" and it’s posted at his blog, Gold Chat, here:…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.