Jim Sinclair’s Commentary
A picture of our first Advisory Board meeting.
Jim Sinclair’s Commentary
A picture from our Dubai Q&A meeting.
Jim Sinclair’s Commentary
A new gold convertible currency. It will be interesting if this one get off the ground of gold phobic regulators.
Alderney looks to cash in on virtual Bitcoins with Royal Mint reality
By Jane Wild
November 29, 2013 9:35 pm
The tiny Channel Island of Alderney is launching an audacious bid to become the first jurisdiction to mint physical Bitcoins, amid a global race to capitalise on the booming virtual currency.
The three-mile long British crown dependency has been working on plans to issue physical Bitcoins in partnership with the UK’s Royal Mint since the summer, according to documents seen by the Financial Times.
It wants to launch itself as the first international centre for Bitcoin transactions by setting up a cluster of services that are compliant with anti-money laundering rules, including exchanges, payment services and a Bitcoin storage vault.
The special Bitcoin would be part of the Royal Mint’s commemorative collection, which includes limited edition coins and stamps that are normally bought by collectors. It would have a gold content – a figure of £500-worth has been proposed – so that holders could conceivably melt and sell the metal if the exchange value of the currency were to collapse.
The hype surrounding Bitcoin has escalated in recent months and its market value has rocketed; the price of a single Bitcoin hit a new peak of $1,242 on Friday on the Mt Gox exchange, established in Tokyo in 2009 as a trading card exchange.
Russian government radio cites GATA in report on gold market manipulation
Submitted by cpowell on Sun, 2013-12-01 23:21. Section: Daily Dispatches
Germany’s Regulators Investigate Manipulation in the Gold Market
By Valentin Mandrasescu
Voice of Russia, Moscow
(Russian Government Radio)
Friday, November 29, 2013
German financial regulator BaFin has started an official investigation of suspected manipulation of benchmark gold and silver prices set by a number of international banks.
The information regarding the investigation was reported by the Wall Street Journal Deutschland. WSJ journalists got an official confirmation from a BaFin spokesman: "Apart from Libor and Euribor, BaFin is also looking into other benchmark setting procedures at individual banks such as for gold and silver prices."
During the last year, the biggest global banks have been found guilty of rigging benchmark lending rates and manipulating the world’s interest rates derivatives market, which involves trading in contracts that have a total notional value of tens of trillions of dollars.
It is not surprising that after finding out that banks rig Libor benchmark rates, Euribor benchmark rates, settlement values for currencies, and a number of reference prices in the energy sector, regulators suspect that the banks may manipulate the gold and silver markets.
The BaFin spokesman mentioned that the German regulator is not alone in its suspicions and that there are similar investigations taking place in the United Kingdom and the United States, without providing further details.
Jim Sinclair’s Commentary
QE to infinity
America’s Role as Consumer of Last Resort Goes Missing
By Simon Kennedy – Dec 1, 2013 5:00 AM ET
Not long ago, before the financial crisis and the global recession it triggered, economists referred to Americans as the consumers of last resort. When the U.S. grew at a healthy pace, its citizens were buyers, fueling demand for the goods China (CNFREXPY) and other nations produced. They kept the world economy humming.
It may not work that way anymore, Bloomberg Markets magazine will report in its January issue. A rebounding U.S. is giving less support to global growth than in the past. Homegrown demand and production are more important drivers of the world’s biggest economy than they were a decade ago.
The smallest U.S. current-account deficit since 1999 shows the trend, and the discovery of new domestic sources of oil and gas reinforces it. Exploration and production are adding to growth, and the country is spending less on imported energy. Cheaper fuel and raw materials are boosting manufacturing as well, making the U.S. more of a competitor to emerging-markets nations and less a reliable consumer of their goods.
“Global growth is slowly becoming more of a zero-sum game,” says Manoj Pradhan, emerging-markets economist at Morgan Stanley in London and a former International Monetary Fund official. “U.S. growth is not reverting to the pre-crisis model, which created lift for everyone else.”
Greedy bankers STILL don’t get it: Bonus culture returns with a vengeance as, five years after the crash, 2,700 British bankers pocket an average of £1.6million
-The figure make’s Britain’s financial elite the highest paid in Europe
-These bankers also had pension packages worth at least £830,000
-Average workers saw wages rise by a minuscule 0.8 per cent last year
-Flies in the face of the banks’ repeated claims they have scaled down pay
By JAMES SALMON
PUBLISHED: 16:17 EST, 29 November 2013 | UPDATED: 16:17 EST, 29 November 2013
The astonishing greed of bankers was laid bare last night as it was revealed their salaries soared by more than a third last year.
While the rest of the nation coped with an unprecedented squeeze on incomes, City workers were enjoying the high life, with the top 2,700 taking home an average of £1.6million each.
The figure – which makes Britain’s financial elite the highest paid in Europe – flies in the face of the banks’ repeated claims that they have scaled down enormous pay rewards in the wake of the financial crisis.
Last night there were claims that the sector had learned nothing from the greatest financial crash for decades – a crisis that their own greed and incompetence was in part to blame for.
The figures also follow a string of scandals at the country’s lenders over mis-selling, failing to help struggling small businesses, and rigging lending rates. Campaigners said that while City salaries have soared, ordinary families are still facing the worst squeeze on household income in living memory.
Chart Of The Day: The Fed Now Owns One Third Of The Entire US Bond Market
Tyler Durden on 12/02/2013 14:17 -0500
The most important chart that nobody at the Fed seems to pay any attention to, and certainly none of the economists who urge the Fed to accelerate its monetization of Treasury paper, is shown below: it shows the Fed’s total holdings of the entire bond market expressed in 10 Year equivalents (because as a reminder to the Krugmans and Bullards of the world a 3 Year is not the same as a 30 Year). As we, and the TBAC, have been pounding the table over the past year (here, here and here as a sample), the amount of securities that the Fed can absorb without crushing the liquidity in the "deepest" bond market in the world is rapidly declining, and specifically now that the Fed has refused to taper, it is absorbing over 0.3% of all Ten Year Equivalents, also known as "High Quality Collateral", from the private sector every week. The total number as per the most recent weekly update is now a whopping 33.18%, up from 32.85% the week before. Or, said otherwise, the Fed now owns a third of the entire US bond market.
At this pace, assuming Janet Yellen keeps delaying the taper again and again over fears of how "tighter" financial conditions would get, even as gross US bond issuance declines in line with the decline in deficit funding needs, the Fed will own just shy of half the entire bond market on December 31, 2014… and all of it some time in 2018.