Posted at 2:11 PM (CST) by & filed under In The News.

It’s A Trap?!?!
Author : Bill Holter for Miles Franklin
Published: June 23rd, 2014

“Gold and silver have turned!”  I bet you have heard that one before.  In fact, I said this almost 12 months ago at the end of last June.  Back then we had another 2 day waterfall event which became common events throughout 2013.  As it turns out, that event was the (a) “retest” of $1,180 in gold and $18 in silver.  I believe that last June really was the bottom in price.  We have chopped since then and had a good little rally to start this year off only to be pressured down again…but I believe that things have now changed.

So why did the metals soar on Thursday?  Was it because Janet Yellen and the Fed were “dovish” as is commonly thought?  Maybe, but haven’t they been dovish since 2008?  Didn’t we have QE’s 1, 2 twist and then QE3?  Hasn’t the Fed, the BOE, BOJ and ECB all flooded the markets with cheap and nearly free currency?  Yes they have, but all we have for their efforts is more debt, inflated markets and stagnant economies where it costs the average person more each day to live and survive.  Six years after the fact they are still using the word “recovery” when during a normal business cycle we would have had another recession, a second recovery and already be in a 2nd growth phase.

The list of “potential” reasons for gold to have exploded out of its “2%” lasso is many.  As mentioned above, a dovish Fed is one theory.  Zero Hedge speculates that the financial games played to depress gold in the face of record physical demand are reversing because missing collateral has become evident.  Andrew Maguire believes that the market got very short recently and the move is the beginning of a massive short squeeze.  Fundamentalists believe that this is the result of gold and silver trading at or below the costs of production.  Others are talking about the drawdowns in the COMEX, LBMA, and GLD inventories as scraping the bottom of the barrel and supply is just drying up.

I believe “all of the above” but most of all I believe that what has just started is only the very beginning of a wide and long planned out “trap” if you will.  I believe that long ago, foreigners figured out what GATA has been trying to inform the public about for what seems like forever.  First off, if GATA figured out that gold and silver prices have been manipulated and suppressed, so have others.  Not only can “others” figure it out on their own.  GATA has made all of their information 100% public and available.  They have sent evidence everywhere imaginable.  They have tirelessly sent evidence to the press, the newspapers and TV stations both here in the U.S. and abroad.  They have sent evidence to the CFTC, the SEC, regulators of foreign nations, senators, congressmen and women, you name it, and GATA has sent it.

My point is this, the information is out there for anyone with half a brain and their “door” slightly cracked open for the information to get through.  The fact that gold’s price has been suppressed has got to be known as a fact in my opinion by nearly all foreign governments.  The Germans and Austrians now know.  The Saudis know the Swiss can see it first hand.  The Chinese and Russians know, literally everyone knows but until now it was like the crazy uncle in the basement that everyone knew about but wouldn’t talk about.

It is my opinion that up until now, no one was willing to go out on a limb like Charles DeGaulle did in the late 1960′s.  No one “overtly” called on gold but through backchannels have been placing their bets and taking delivery.  This would explain the physical demand that we’ve seen.  I use the word “overtly” because until now I don’t think anyone wanted to feel the wrath of the U.S. so they went about their business behind the scenes and done so quietly.  I also believe that if there were say 3,000-5,000 tons left to accumulate a year ago, then why would you pull the plug until the last ounces were vacuumed up?  So they have waited… until the time was right.

So here we are today, one year after the bottom and what has happened?  Well, the “buyers” bought and have been taking delivery of huge weights of gold while…the U.S. has gone another $1 trillion++ in debt, the Fed added another $1 trillion to their balance sheet, corporate and individual America has gone further into debt, more manufacturing has left our shores and apparently so has some gold whether it’s been ours or someone else’s.  I think that we have arrived at the point where foreigners feel “strong” enough and see us as weak enough to all stand up in unison and say “enough.”  The amount of deals done in the last 2-3 months alone that exclude the use of dollars is staggering.  Just this past week, Britain inked a deal with China on “direct” trade between the two in sterling and Yuan.  A deal like this could never have been even contemplated just a few short years ago.  Remember, this was Great Britain who did this, supposedly our number one ally and friend with what has been described as a very “special relationship.”  For Britain to do this it tells me that it’s not just smoke in the back rooms where the deals are being done, no, it’s a raging fire.

I think that as of now, most all of the pieces are in place for the world to collectively stand up to and financially knock the U.S. off of our pedestal.  This past Thursday may have been a “test shot” to see what we have left.  It may have been “jockeying for position” or positioning before the announcement.  Like I wrote above, if I know this, if GATA knows this, then they also know.  If it were me leading the troops into this battle, I would set off a string of announcements.  Each and every one of them aimed at the dollar, our financial system and our economy.  The Russians would do the heavy lifting militarily.  The Chinese might announce their intent to “reallocate” (sell) some of their U.S. Treasury hoard.  They might also announce something like an 8,000 ton current holding of gold as a kicker.  The Saudis would announce that they will accept Yuan, rubles and euros but no longer dollars for their oil.  Trade and financial arrangements might be altered by the Europeans as their arms are twisted with withheld natural gas supplies.  This list is by no means complete but quite easily coordinated.

Before finishing I’d like to mention one other thing that is happening.  The open interest in silver has grown and grown and grown over the last several months and rests very close to the all-time highs of 3 years ago when it was priced at almost $50.  The open interest is now roughly 165,000 contracts.  The July month alone has almost 60,000 contracts open with just 8 trading days before 1st notice day.  This represents about 300 million ounces.  The dealer inventory only totals 57 million ounces and when customer held inventory is added, the total is 174 million ounces.  Clearly, if these July contracts stood for delivery then the COMEX would be cleaned out entirely.  It has been my theory that the Chinese have been accumulating silver contracts through various proxies for months on end.  I originally believed this a year ago until the open interest then diminished but here we are again.

If I am correct about my “giant trap” theory, you can bet your bottom dollar that the paper silver market is also a part of it.  The July contracts open currently amount to a whopping (sarcasm) $6 billion worth of silver and the amount available for delivery is less than $1.2 billion.  COMEX inventory in total is only $3.5 billion worth of silver.  Why would the Chinese not turn over $6 billion worth of Treasury bonds to bust the COMEX wide open?  If they did not ultimately do this, I would be shocked.  Actually if you think about it, the Chinese could do this all on their own and for “free” (only $6 billion) destroy the Western financial system by exposing the amount of metal available for delivery to be insufficient.  Why would they not just do this all on their own?  Easy, have you ever studied a pack of dogs or wolves?  While one dog may be scared away easily, when there is a pack involved there is no scaring them away.  Unfortunately, the U.S. has angered so many nations that several packs are now easily formed.  All you need to do is use a little bit of common sense to connect the announcement “dots,” new alliances and partnerships to see that the world is collectively turning into a “pack.”  Maybe I am seeing things but it looks to me like what is about to happen has and was pre planned for many years and by many parties.


Iraq army capitulates to Isis militants in four cities
Half a million people on the move after gunmen seize four cities and pillage army bases and banks
Martin Chulov in Beirut, Fazel Hawramy in Irbil and Spencer Ackerman in New York
The Guardian, Wednesday 11 June 2014

Iraq is facing its gravest test since the US-led invasion more than a decade ago, after its army capitulated to Islamist insurgents who have seized four cities and pillaged military bases and banks, in a lightning campaign which seems poised to fuel a cross-border insurgency endangering the entire region.

The extent of the Iraqi army’s defeat at the hands of militants from the Islamic State of Iraq and Syria (Isis) became clear on Wednesday when officials in Baghdad conceded that insurgents had stripped the main army base in the northern city of Mosul of weapons, released hundreds of prisoners from the city’s jails and may have seized up to $480m in banknotes from the city’s banks.

Iraqi officials told the Guardian that two divisions of Iraqi soldiers – roughly 30,000 men – simply turned and ran in the face of the assault by an insurgent force of just 800 fighters. Isis extremists roamed freely on Wednesday through the streets of Mosul, openly surprised at the ease with which they took Iraq’s second largest city after three days of sporadic fighting.

Senior government officials in Baghdad were equally shocked, accusing the army of betrayal and claiming the sacking of the city was a strategic disaster that would imperil Iraq’s borders.

The developments seriously undermine US claims to have established a unified and competent military after more than a decade of training. The US invasion and occupation cost Washington close to a trillion dollars and the lives of more than 4,500 of its soldiers. It is also thought to have killed at least 100,000 Iraqis.

Early on Thursday the Sites monitoring group in the US said it had translated an audio statement by an Isis spokesman declaring that "the battle will rage in Baghdad and Karbala … put on your belts and get ready". The New York Times, meanwhile, reported that Iraq last month secretly asked Barack Obama to consider bombing Sunni militant staging posts in Iraq.


John Kerry snubbed by Egypt’s heavy jail sentences for al-Jazeera journalists
Cairo’s decision to impose seven-year sentences has weakened Kerry after he interceded on the journalists’ behalf
Simon Tisdall
The Guardian, Monday 23 June 2014 10.43 EDT

Egypt’s military-dominated government has delivered a humiliating, public slap in the face to John Kerry, the US secretary of state, by sentencing three al-Jazeera journalists to long prison terms only hours after Kerry personally expressed his deep concern about the case in high-level meetings in Cairo. The snub represents a disastrous beginning to Kerry’s already fraught Middle East tour, which took him to Baghdad on Monday for crisis talks about the Islamist extremist uprising.

The verdict, by a court responsive to government wishes, will also be seen as a deliberate, crude signal to President Barack Obama, who criticised Egypt’s deteriorating human rights record after the former general, Abdul Fattah al-Sisi, seized power in a coup last year. Sisi has since had himself voted president. His elected predecessor, Mohammed Morsi, and thousands of his Muslim Brotherhood supporters remain in jail while hundreds of others have been killed.

In what US officials said were "candid" talks with Sisi, Kerry "emphasised our strong support for upholding the universal rights and freedoms of all Egyptians, including freedom of expression, peaceful assembly and association". He noted a number of promises by Egyptian leaders "are yet to be fulfilled", but added that "the United States remains deeply committed to seeing Egypt succeed".

The hollowness of all this careful diplomatic language was exposed for all to see by the court’s verdict, which diplomats and observers said was reached without the complication of supporting evidence. It seems clear now that Kerry was wasting his breath; the sentences were pre-determined, intended as a stark warning to Egyptian and foreign media and as a symbol of the regime’s determination to demonstrate its independence of Washington.

This is ironic given that, before the talks, the US had made available most of the $575m (£328m) in military aid frozen by Congress after the coup against Morsi. Kerry offered more blandishments in the form of 10 Apache attack helicopters, which he said would be supplied to Egypt "very soon". This is exactly the sort of deadly air power that Iraq’s government has pleaded for but has so far been denied by Obama.


Tsunami Warning Issued After 8.0 Magnitude Quake, Dozens Of Aftershocks Off Alaska’s Coast
By Brandon Mercer June 23, 2014 2:24 PM

ALEUTIAN ISLANDS (CBS SF) — A massive 7.9 revised magnitude earthquake off Alaska’s remote Aleutian Islands has triggered a regional tsunami, with reports of water already leaving some harbors including Adak Harbor, as the waves begin to come in.

California’s coastline is highlighted in the National Weather Service tsunami energy propagation map, however, no warning has been issued for the West Coast.

Seismologist David Oppenheimer stationed in Menlo Park said, “The message is simple: wait for the tsunami warning to say what’s going on, if there is a warning, NOAA will update their advisory.”

He added, “There’s report of a tsunami in Alaska, but it’s small. Had the earthquake been shallow, there could have been big waves and more displacement. NOAA is watching for tide gauges.”

With the small amount of sea floor movement, Oppenheimer was clear, “There’s nothing to be concerned about on the California coast.”


Posted at 9:56 PM (CST) by & filed under In The News.


Russia’s Air Force starts large-scale troop transfer in combat readiness check – Defense Ministry

The Russian Air Force has  stared large-scale airlifting of personnel and materiel in a combat readiness check for troops in the  Central Military District, the Defense Ministry press service report. The combat readiness test will last from June 21 to 28. The task set by the president is to assess the military’s ability to perform their duties within existing time standards over the first 24 hours, Russian Defense Minister Shoigu said.

"The transfer of troops involves over 40 Antonov An-124 Ruslan, Ilyushin Il-76, Antonov An-22 and Antonov An-26 from the military aviation transport unit in Tver, Pskov, Taganrog and Orenburg air bases, which today alone will fly over 50 missions to transfer personnel and military hardware to various destinations," a ministry report says.

Personnel and equipment from detachments of the 98th air-borne division and the 31st assault brigade of Air-Borne Troops are loaded at airdromes for subsequent transfer to the Chelyabinsk region where they will take part in an exercise with combined-arms units of the Central Military District, the press service says, Interfax reports.

Russian President and Supreme Commander-in-Chief Vladimir Putin has ordered a comprehensive surprise combat readiness test of the entire personnel of the Central Military District, Defense Minister Sergei Shoigu announced at a conference at the Defense Ministry on Saturday. "In line with [Putin's] orders, the Central Military District’s troops and also units and garrisons deployed on its territory have been put on full combat alert since 11:00 am today," he said.

The troops will then be deployed at ranges and conduct exercises in line with their intended purpose, he said, Interfax reports.


Russia Reignites The Proxy War: Putin Offers "Complete Support" To Iraq Prime Minister Scorned By Obama
Tyler Durden on 06/20/2014 20:50 -0400

Two days ago, before it was formalized that the US tacitly, if not explicitly, now supports the removal of the Iraqi Prime Minister whom it itself had helped elect, we summarized the geopolitical tensions and "national interests" in Iraq, which is shaping up to be a proxy war that makes last year’s Syrian escapade pale by comparison, as follows:

· The situation in Iraq, already a jumble of domestic sectarian violence, is now pitting virtually all major (and regional) international players against each other as well. There is:

· US which tacitly supports Iran intervention in the region, but may have suddenly cooled in its support of Maliki despite sending naval and troop forces in the country after partially evacuating its embassy

· Saudi Arabia which wants to remain friendly with the US but is antagonistic to the Iraq regime, is potentially aiding the ISIS forces, and clearly refuses to allow Iran entrance in Iraq

· Iran, which has suddenly become America’s best friend in the region, which is willing to enter Iraq and protect its holy sites

· Syria, whose president is sitting back amused at last year’s failed campaign by the US to remove him from power, and whose army is at a stalemate with the local US-armed and funded rebels

· Qatar, which is supporting the Syrian rebels, but so far has not made its stance clear on Iraq. Like Saudi, it too may be indirectly backing ISIS

· Jordan, which is a close friend the US, and which may have hosted ISIS in a secret base on its territory with the US instructing the jihadist group according to an unconfirmed report

· Turkey, which is on constant alert to Kurdish escalation across the border, the same Kurds which now have far more leverage courtesy of ISIS crushing the Iraq army in the north and handing over Kurds access to oil fields in the north.


Posted at 9:45 PM (CST) by & filed under Jim's Mailbox.


Watch what they do, not do what they say.

CIGA Perry


Antonis Samaras, the Greek prime minister, echoed Mr Li’s remarks on Friday as the two men inaugurated a 17km rail link from a Chinese-controlled container operation at Piraeus port to the main line connecting Greece with the Balkans and central Europe.

Click here to read the full article…

Posted at 1:54 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Here are the 30 reasons, 23 new and 7 set in cement, of why the Bear phase in the bull market for gold ends this summer without any new lows.

1. The New definition of warfare is economic. Sanctions against Russia and the implications for the Petrodollar

2. FACTA and the universal long arm of the US government via any transaction internationally that passes even momentarily through the dollar as a contract settlement mechanism. The negative implications for the dollar’s future as a contract settlement mechanism internationally.

3. EU split over sanctions due to Russian energy demand and Russian business interests.

4. Middle East Western Hegemony and Arab Spring is defunct.

5. Iran to assist in Iraq if asked, which is the failure of "Misssion Accomplished."

6. Iraq oil production challenged by ISEL.

7. Kurds emboldened by ISEL.

8. US relationship with Saudi Arabia and Qatar is strained.

9. BRICs uniting economically and politically as a standalone force.

10. China expands Yuan/Renminbi as an international currency.

11. China’s China Sea energy tensions with Japan and Vietnam.

12. USA’s position on the China Sea crisis where Japan is concerned.

13. The militarization of Japan.

14. The distinct scent of inflation.

15. General dissatisfaction with answers to questions to Chair Yellen regarding FOMC meeting last week

16. IMF reduced expectations of US economic recovery.

17. US Zombie Banks as defined by banks leveraged generally 30 to 35 times the size of their capital of total OTC derivative exposure.

18. Condition of the flooded municipal bond market.

19. Decline in volume with rise in value of equities, making equity price shadows our reality.

20. Totally irrational exuberance driven by hyper liquidity.

21. Hyper liquidity can become hyper inflation via the velocity of money in a crisis of confidence of the dollar. Therefore hyperinflation will be a currency motivated event.

22. Reaction in the momentum equity leaders of the last 2 years burning a public.

23. Strength of the utilities group which has historical attachment to tops in equity markets.

Old problems:

24. The one quadrillion, one hundred and forty four trillion dollars real size of the OTC derivatives market.

25. Economic underpinning of the dollar in jeopardy as recovery sputters globally

26. Absurd size of the Fed balance sheet and lack of marketability of significant size legacy derivative positions.

27. Taper of QE and little Belgium to the QE rescue.

28. China and Russia on the sell side of the US treasuries.

29. MY RA exposes consideration of invasion of retirement accounts, and GOTS (Get out of the system) as a defense strategy.

30. The huge drop out of the labor pool in the US, making employment figures sketchy at best.

Posted at 1:34 PM (CST) by & filed under In The News.



Iraq’s Maliki: I won’t quit as condition of US strikes against Isis militants
As senators say Iraqi PM’s sectarian leadership must end, Maliki calls upon west to give urgent air and intelligence support
Martin Chulov in Baghdad, Spencer Ackerman in Washington and agencies, Thursday 19 June 2014 07.18 EDT

A spokesman for the Iraqi prime minister, Nouri al-Maliki, has said he will not stand down as a condition of US air strikes against Sunni militants who have made a lightning advance across the country.

Iraq’s foreign minister, Hoshyar Zebari, on Wednesday made a public call on al-Arabiya television for the US to launch strikes, but Barack Obama has come under pressure from senior US politicians to persuade Maliki, a Shia Muslim who has pursued sectarian policies, to step down over what they see as failed leadership in the face of an insurgency.

Dianne Feinstein, the chair of the Senate intelligence committee, told a hearing on Wednesday that Maliki’s government "has got to go if you want any reconciliation", and Republican John McCain called for the use of US air power but also urged Obama to "make very clear to Maliki that his time is up".

The White House has not called for Maliki to go but its spokesman Jay Carney said that whether Iraq was led by Maliki or a successor, "we will aggressively attempt to impress upon that leader the absolute necessity of rejecting sectarian governance". The US secretary of state, John Kerry, said Washington was focused on the Iraqi people, not Maliki.

Maliki’s spokesman, Zuhair al-Nahar, said on Thursday that the west should immediately support the Iraqi government’s military operation against Islamic State in Iraq and the Levant (Isis) rather than demand a change of government. He insisted that Maliki had "never used sectarian tactics".

"Our focus needs to be on urgent action – air support, logistic support, counter-intelligence support to defeat these terrorists who are posing a real danger to the stability of Iraq, to the whole region," he told the BBC Radio 4 Today programme.


Bulgaria Stocks Drop Most in 16 Months as Bank Runs Out of Funds
By Natasha Doff Jun 20, 2014 7:51 AM MT

Bulgaria’s stock index slumped the most in 16 months as the central bank appointed administrators to manage the nation’s fourth-biggest lender after it ran out of funds and stopped all operations.

Shares of Corporate Commercial Bank were suspended today after slumping 9.8 percent yesterday. The Sofix Index (SOFIX) retreated 3.7 percent to 538.90 at the close in Sofia. The government’s July 2017 euro-denominated bonds fell, sending the yield up four basis points to 1.49 percent.

Bulgaria’s central bank appointed two administrators for three months to manage Corporate Commercial and suspended the bank’s management, central bank Governor Ivan Iskrov said at a news conference in Sofia today. The lender faced an “enormous run on funds” in the past week, Iskrov said. The development comes before Bulgaria starts investor meetings in Europe on June 23 for a possible euro bond sale.

“The news was clearly behind the drop in Bulgarian stocks, especially as the market is relatively illiquid compared to peers,” Simon Quijano-Evans, the London-based head of emerging-markets research at Commerzbank AG, said by e-mail. “Given the systemic importance of the bank, the big question and risk is that political issues can lead to such a situation. That is probably the main question that investors will be asking themselves ahead of any bond issue.”

Bulgaria picked Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. to manage its investor meetings, a person with knowledge of the plan said June 18, asking not to be identified because the details are private.


Fourth Largest Bulgarian Bank Seized After Bank Run: "Let’s Not Tear Down Our House" Central Banker Begs
Tyler Durden on 06/20/2014 10:57 -0400

The small, impoverished country of Bulgaria may not be in the Eurozone (even though its currency is pegged to the Euro), but it is in the European Union. Which is why we find it surprising that there has been relatively little mention that overnight the fourth largest Bulgarian bank, Corporate Commercial Bank (Corpbank) and which in recent weeks has made headlines due to the political exposure of one of its largest shareholders, was seized by the Bulgarian central bank following what Reuters reports was a run on the bank.

With preserving confidence in the banking system key, and since the small country is not immune from failure unlike its southern neighbor which knows Europe will now never let its banks fail, the central bank promptly took to boosting morale, when its governor Ivan Iskrov begged depositors to stay calm, saying: "Let’s not tear down our house."

Reuters also reports that the Bulgarian National Bank said it had taken control of Corpbank’s operations for a period of three months and removed its  management and supervisory board, but stressed it was not bankrupt.  A Reuters photographer saw dozens of people queuing outside the main office of the bank in the Bulgarian capital on Friday.

The central bank said the run on the lender was triggered by adverse media reports, and that it acted after receiving information from Corpbank on Friday morning that it had stopped all payments and bank operations due to a liquidity drain.


Posted at 1:41 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

China will increase its presence in gold trading in general.

Shanghai to Start International Gold Trading in 4Q
By Bloomberg News Jun 20, 2014 4:55 AM ET

China, the world’s biggest gold user, will start international gold trading in Shanghai’s free-trade zone in the final quarter of this year, according to a city government official.

“We will aim to commence trading in the fourth quarter,” Zheng Yang, head of Shanghai’s financial services office, said today in a conference in the city. The nation’s central bank earlier this week approved the trading platform to be included in the zone’s banking system.

China, also the world’s largest bullion producer, is seeking to step up its presence in the global gold market at a time when the industry is discussing changes to the century-old fixing benchmark in London used to trade and value the metal. The country overtook India as the largest user last year as the biggest price drop in more than three decades spurred purchases, the World Gold Council said in February.

“The new platform is to attract foreign investors and to get China more influence in the global bullion market,” said Liu Xu, an analyst at Capital Futures Co. in Beijing.

Qualified investors can open accounts with the four designated banks including Industrial & Commercial Bank of China Ltd. to trade gold in the area, the People’s Bank of China’s Shanghai head office said June 18.

The free-trade zone is a testing ground for liberalizing interest rates and currency usage. The Shanghai Gold Exchange, the country’s biggest physical bourse for the precious metal, is considering allowing the use of offshore yuan in gold trading in the zone, Bloomberg News reported on June 4.



Jim Sinclair’s Commentary

Russia extends its relationships as the West leaves a vacuum.

Lavrov goes to Saudi Arabia to discuss situation in Syria, Iraq
June 20, 8:33 UTC+4

MOSCOW, June 20. /ITAR-TASS/. Russian Foreign Minister Sergei Lavrov travels to Saudi Arabia Friday to discuss the situation in Syria and Iraq, an Russian Foreign Ministry official said.

"Lavrov will visit Jeddah at the invitation of Saud al-Faisal, Minister of Foreign Affairs of the Kingdom of Saudi Arabia, for talks with members of the Saudi leadership," the official noted.

"During the forthcoming meetings, they plan to discuss the situation in Syria and around it, the state of affairs in Iraq, matters of ensuring security in the Gulf, as well as topical aspects of Russian-Saudi interaction, including a political dialogue and cooperation in the trade-and-economic sphere," the official added.

Russia and Saudi Arabia are engaged in an active dialogue in various spheres. On June 3, al-Faisal visited Sochi where he met with Russia’s President Vladimir Putin and Lavrov. On June 9, Lavrov and al-Faisal had a telephone conversation on the initiative of the Saudi side. They discussed efforts towards settling the crisis in Syria and other conflict situations in the region.

The two countries also develop economic cooperation, including in the energy sphere. On June 18, Russia and Saudi Arabia agreed on a draft intergovernmental framework agreement on cooperation in peaceful uses of nuclear energy and subsequent steps in preparing the agreement for signature.


UN places blame on Ukraine’s gov’t for war crimes

The United Nations Human Rights monitoring commission has published a report on the Ukrainian issue. The report might stir Kiev, the US and the EU up, if only the West still respects the UN. The report says that the Ukrainian government violates human rights and the international conventions in the Federal State of Novorossiya, which is southeastern Ukraine.

The violations include detentions, kidnapping, tortures and killing of people, including women and children.

The authors of a 58-page document write specifically about the death of an Italian journalist and his Russian interpreter, about arrests of Russian and Ukrainian journalists by Ukrainian forces. Moreover, the commission says that the federal media "just increases tensions and provokes people by harsh rhetoric. Southeastern Ukraine faces violence and lawlessness," the report says. The UN observers claim that people, who are not taking part in military actions are often getting kidnapped and killed; Ukrainian forces shell hospitals and kindergartens. "The observers also reported on the kidnapping of pro-Russian activists. According to the report, Ukrainian forces arrested 11 people, who then went missing," Internet portal says.

Women and children suffer as well. "Specialists of the United Nations Children’s Fund (UNICEF) found out that every second child of the Donetsk and Lugansk areas suffers from depression and insomnia; the Ukrainian government hasn’t been paying pensions for two months," the UN’s commission says. As for Odessa’s tragedy of May 2, the UN thinks that the city faced a monstrous crime; many seriously wounded people didn’t turn to doctors for treatment as they were afraid of being killed by the radicals.

The UN has also criticized Kiev for not cooperating with the organization, while investigating Odessa’s tragedy. Even anti-Russian deputies of the European Parliament insisted on a scrupulous investigation of the tragedy, claiming that people there were killed with the use of chemical weapons. However, the US claimed that it was against the investigation.


Jim Sinclair’s Commentary

Sir Richard the Good shares with us.

Richard Russell Declares “The Bear Market In Gold Is Over”

Russell: “Everything is coming up roses with the stock and bond markets and also with the precious metals. Now that GDXJ is acting so well, I’m wondering how many of my beloved subscribers have taken a position in GDXJ? Like most advisories, I tout or boast about the positions where I’m right and forget to comment on situations where I have been wrong.

I haven’t been listening, but Janet Yellen is being grilled again by Congress. And here is her chance to suggest a continuation of QE. Actually, she intimates that nothing will change. I still can’t believe that the Fed will shut down QE in a few months. The stock market is obviously aware of this, but has chosen, so far, to ignore it. The choices ahead are — the Fed will continue QE, or at some juncture ahead, all the smart boys will all rush for the exits at the same time. How this will all work out is a mystery to me. I’m just as happy to be out of common stocks and in the precious metals.

Another question — what’s holding the dollar up? This is a market full of mysteries and at the same time, exhibiting extremely low volatility. As I’ve said so many times before, after the calm comes the storm. Gad, I think I’m ready for another glass of buttermilk.

Chart of gold below. As I write an hour before the close, gold is up $41. Referring to the chart you can see this puts gold above its 50-day and 200-day moving averages. This should start squeezing the gold shorts. The bear market in gold is over, and gold again is in a bull market.


Posted at 4:19 PM (CST) by & filed under Jim's Mailbox.


And just to be sure the point is driven home…

JPMorgan Chase – zombie bank
Total Assets: $1,947,794,000,000 (nearly 1.95 trillion dollars)
Total Exposure To Derivatives: $71,289,673,000,000 (more than 71 trillion dollars)

Citibank - zombie bank
Total Assets: $1,319,359,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $60,398,289,000,000 (more than 60 trillion dollars)

Bank Of America - zombie bank
Total Assets: $1,429,737,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $42,670,269,000,000 (more than 42 trillion dollars)

Goldman Sachs - zombie bank
Total Assets: $113,064,000,000 (just a shade over 113 billion dollars – yes, you read that correctly)
Total Exposure To Derivatives: $43,135,021,000,000 (more than 43 trillion dollars)

Read the whole article here…



IMF recommends to ECB to start the electronic printing press.

CIGA Perry

Eurozone recovery not strong enough, says IMF
By Andrew Walker
BBC World Service Economics correspondent

The recovery in the eurozone is not strong enough, according to the International Monetary Fund (IMF).

That’s the assessment IMF head Christine Lagarde is delivering to eurozone finance ministers at a meeting in Luxembourg.

The IMF also says the European Central Bank (ECB) should consider buying financial assets with newly created money, if inflation remains low.

But the IMF’s regular eurozone health check sees some signs of progress.



Hi Jim,

It’s time to remind CIGAs about the importance of certificate ownership.

Banks use your shares to short sell. Demand your share certificates. The bank is then forced to buy back and cover the short sell


Posted at 11:18 AM (CST) by & filed under In The News.

Ukraine will face food riots – Ukrainian opposition leader
19 June 2014, 15:23

What is the best way to ruin a country? Let the IMF handle its economy. What is the fastest way to ruin a country? Let the IMF sponsor a civil war in it. Ukraine’s junta has chosen both options. According to the calculations made by Prime Minister Yatseniuk, Ukraine requires more than $35 billion to last through this year.

However, the IMF offered only half of the needed sum and forced Kiev to adopt draconian austerity measures for every type of expenses, except the ones required for its punitive operations against the rebels of the Donbass region. True to its well known modus operandi, the Washington-based lender transferred only $3 billion to Ukraine.

Sadly, the Fund also included in its documents a scandalous provision which states that the next tranches of the bailout program will be "reconsidered" if Kiev fails to retain control of the eastern regions of the country. Basically, the IMF put a price on the heads of the citizens of the breakaway republics of Lugansk and Donetsk and its offer to Kiev boils down to "if don’t you subdue the rebels, we won’t give you $11 billion." Probably, Washington-based financiers believed that such an arrangement will help the junta crush the rebellion. The plan backfired, because junta’s punitive actions led to a massive blowback. The "rebel armies" of Donetsk and Lugansk now have the overwhelming support of the locals who are being constantly threatened by the Ukrainian army and various paramilitary neo-nazi organizations . However, the people of the breakaway regions are not the only victims of the IMF-imposed policies.





Ukraine Truce Lasts "Several Seconds" Before Latest Fighting Involving "4000 Troops, Tanks, APC" Breaks Out
Tyler Durden on 06/19/2014 09:00 -0400

It took all of "several seconds", in the NYT’s own words, for the latest proposal for a ceasefire, issued by Ukraine’s new president Petro Poroshenko, to be "rejected."

Here is how the NYT framed it, and why the truce proposal is seen as a "lose-lose" idea from the perspective of the rebels: "After Ukraine’s new president, Petro O. Poroshenko, told reporters in Kiev on Wednesday that he might soon order a temporary, unilateral cease-fire as part of a broader 14-point peace plan, it took all of several seconds for pro-Russian militants to rule it out."

“I am a condemned man,” said a stick-thin fighter who, like many others here, identified himself only by an alias, Tarik, for security reasons. Sipping tea in the gloom of the lobby of Donetsk’s rebel-occupied administration building on Wednesday afternoon, he patted the magazine of the automatic rifle slung across his chest.

Any cease-fire would certainly be violated by the Ukrainian Army, he said, adding that he and other pro-Russian separatists would be arrested the minute the government had the opportunity.

“What peace can they possibly offer me?” he asked. “If they want peace, then they can leave.”

That’s the big picture.


United States to Send Military Advisers to Iraq

WASHINGTON — President Obama said on Thursday that the United States would deploy up to 300 military advisers to Iraq to help its beleaguered security forces fend off Sunni militants, edging the United States back into a conflict that Mr. Obama thought he had left behind.

Mr. Obama also said the United States was gathering intelligence on the positions of militant fighters to identify targets, and added, “We will be prepared to take targeted and precise military action if we conclude the situation on the ground requires it.”

The president sent a strong warning to the Iraqi prime minister, Nuri Kamal al-Maliki, the Shiite leader whose policies have fueled the deepening sectarian tensions with the Sunni Arab minority. American officials have privately concluded that Mr. Maliki cannot head a national unity government.

“The test is before him and other Iraqi leaders as we speak,” Mr. Obama said. “Right now they can make a series of decisions. Regardless of what’s happened in the past, right now is a moment where the fate of Iraq hangs in the balance.”






Jim Sinclair’s Commentary

Lost or leases went upside down.

The Bank Of England Lost 755 Tonnes Of Gold In 2013
Written by Koos Jansen on June 17, 2014 at 4:18 pm

The Bank Of England (BoE) just came out with their annual report 2014. In the report it’s stated the BoE is the custodian of 5485 metric tonnes of gold (£140 billion pounds measured February 28, 2014). From the BoE annual report 2014:

The Bank provides custodial services for a range of customers. As at 28 February 2014, total assets held by the Bank as custodian were £594bn, of which £140bn were holdings of gold.

In the BoE’s annual report 2013 it was stated they held 6240 tonnes of gold (£210 billion pounds measured February 28, 2013). From the BoE annual report 2013:

As part of this strategy the Bank also provides custodial services for a range of customers. As of 28 February 2013, total assets held by the Bank as custodian were £699 billion, of which £210 billion were holdings of gold.




Jim Sinclair’s Commentary

The way to end white collar crime.

Iran hangs billionaire over $2.6b bank fraud
Largest fraud case since 1979 Islamic Revolution sends four scammers to the gallows, including tycoon Mahafarid Amir Khosravi.
By The Associated Press | May 24, 2014 | 2:50 PM

A billionaire businessman at the heart of a $2.6 billion state bank scam, the largest fraud case since the country’s 1979 Islamic Revolution, was executed Saturday, state television reported.

Authorities put Mahafarid Amir Khosravi, also known as Amir Mansour Aria, to death at Evin prison, just north of the capital, Tehran, the station reported. The report said the execution came after Iran’s Supreme Court upheld his death sentence.

Khosravi’s lawyer, Gholam Ali Riahi, was quoted by news website as saying that his client was put to death without any notice.

"I had not been informed about execution of my client," Riahi said. "All the assets of my client are at the disposal of the prosecutor’s office."

State officials did not immediately comment on Riahi’s claim.

The fraud involved using forged documents to get credit at one of Iran’s top financial institutions, Bank Saderat, to purchase assets including state-owned companies like major steel producer Khuzestan Steel Co.


Who Just Bought Half A Billion Dollars Of Gold Futures?
Submitted by Tyler Durden on 06/19/2014 08:28 -0400

Presented with little comment aside to note the surge in gold since Yellen gave markets the all-clear yesterday. It seems someone decided the open this morning was an opportune time to take on half a billion dollars of gold exposure…





Jim Sinclair’s Commentary

Every step forward for the yuan is a step backwards for the dollar.

China Focus: Direct yuan-sterling trade begins
Published On: Wed, Jun 18th, 2014

China’s central bank announced on Wednesday direct trading of the yuan against sterling.

The announcement came after Chinese Premier Li Keqiang began his visit to London on Tuesday.

“The direct yuan-sterling trade is good for forming a direct exchange rate between the renminbi and the British pound and reducing exchange costs,” the People’s Bank of China (PBOC) said in a statement on its website.

The PBOC promised “active support” for yuan-sterling direct trading and the China Foreign Exchange Trading System said yuan-sterling direct trade will start on Thursday.

Previously, the yuan-sterling reference rate was calculated on the yuan-U.S. dollar central parity rate, and the pound-dollar rate. As the two currencies can now be directly traded, the yuan-sterling rate will be set by the average prices offered by market makers before the opening of the interbank foreign exchange market.The move should help London’s bid to become a renminbi offshore center.

China has allowed direct onshore trade in a number of currencies to lower transaction costs, including the Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian ruble. Currency swaps with foreign governments have increased overseas circulation of the yuan.

“Yuan-sterling trade is another important step toward internationalization of the renminbi,” said Helen Wong, president and chief executive of HSBC China, one of the market makers.