Posted at 10:27 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

John Williams of ShadowStats.com shares the following with us.

- Consistent and Corrected BLS Payroll-Employment Data Are Available Here to ShadowStats Subscribers
- Highly Volatile Inconsistenciesi n Payroll Reporting
- Comparable with January 2015 Payroll Reporting, November Jobs Gain Was 340,000, Not the Headline 423,000
- Similar Quality Issues Plague Unemployment Data

“No. 695: Payroll-Employment Revisions – Corrections to Inconsistent Reporting”
Web-page: http://www.shadowstats.com

 

A spade can never be called a spade
By Bill Holter.

Yesterday we looked at the situations in both Ukraine and Greece, and how they are both out of money which makes them potential “flash points” for reality to set in.  What I’d like to talk about today are the various “slights of hand” and why a spade can never be called a spade.

  Currently in the U.S., some (but certainly not all) of the recent economic numbers are showing an absolutely booming economy.  All you need to do is look at Friday’s unemployment numbers, they were clearly bogus.  The biggest driver of employment over the last five years has been the boom in the oil patch …which is now busted with 1,000′s of pink slips being handed out.  BLS revised the November and December numbers to show the fastest growth of employment for any three month period …so far this century!  Really?  Do you believe this in any fashion at all?

  The economic and financial lies are getting bigger and bigger while the economy is shrinking and the financial position is more perilous.  The gap between the reality and the true conditions have never before in history been this wide.  Stocks are not allowed to drop, institutions are not allowed to fail, heck, financial institutions have been “told” not to mark to market as this would expose failures.  Inflation is understated, employment is overstated, gold is not allowed to rise and the game continues. Everything you now see and hear has one goal behind it, hide the reality at any and all costs.

  The situation with Greece is very sticky for the West for several reasons.  Each and every one of them is because a Greek failure will expose the very ugly reality that the West is one big and interconnected series of Ponzi schemes constructed in pyramid fashion.  Greece cannot be allowed to fail because of what, how much, and who they owe.  In order for the reality to stay hidden, Greece absolutely must be forced to borrow more money so they have the ability to pay past debts.  Already this morning, a six month “trial balloon” extension has been floated.  If Greece is allowed to fail, other central banks (including and particularly the ECB) and many commercial banks will take some very real losses.  This CANNOT be allowed to happen because of the leverage factor and the fact that no more collateral exists within the system that’s not already encumbered.

  You see, many assets have been hypothecated (lent/borrowed against) many times over, including Greek debt.  In case you don’t see the problem here, I will spell it out.  When something is “lent” out or “borrowed” more than one time, it is theft pure and simple.  This truth cannot in any fashion come to the surface because it will create a “call”.  The original owners will flood in and ask for their security, their asset, (think gold) back.  What do you think the world will look like when 100 or so “owners” of the same asset decide they will not be one of the suckers who are left with nothing?  This will be a bank run on a system-wide basis and include nearly any asset type you can think of.

More…

 

Jim Sinclair’s Commentary

Let us see how this gets killed.

Justice Department Is Seeking Felony Pleas by Big Banks in Foreign Currency Inquiry
By Ben Protess and Jessica Silver-Greenberg
February 9, 2015 10:00 pm

The Justice Department is pushing some of the biggest banks on Wall Street — including, for the first time in decades, American institutions — to plead guilty to criminal charges that they manipulated the prices of foreign currencies.

In the final stages of a long-running investigation into corruption in the world’s largest financial market, federal prosecutors have recently informed Barclays, JPMorgan Chase, the Royal Bank of Scotland andCitigroup that they must enter guilty pleas to settle the cases, according to lawyers briefed on the matter. The pleas would be likely to carry a symbolic stigma, if limited actual fallout, in handing felony convictions to some of the world’s biggest banks.

Yet even as those cases head toward negotiations over potential plea deals — a development that has not been previously reported — additional currency misconduct has surfaced in a New York state investigation, confidential documents show. The documents, excerpts from online chat rooms reviewed by The New York Times, suggest that banks designed electronic trading platforms that effectively drove up the price of currencies sold to clients. In the chats, replete with expletives and industry jargon, employees described and even joked about how the platform would cancel trades that ceased to be profitable for the bank.

New York’s financial regulator, Benjamin M. Lawsky, initially focused on platforms at Barclays andDeutsche Bank, but he has since subpoenaed four other banks: Goldman Sachs, Credit Suisse, BNP Paribas and Société Générale. None of the banks have been accused of wrongdoing, and they are cooperating with the investigation.

The Justice Department’s plea deals, if ultimately reached, would not cover any wrongdoing that surfaces from Mr. Lawsky’s investigation. Negotiations with the Justice Department are likely to center on which entity will plead guilty: the bank’s parent company, or a subsidiary that housed the misconduct. The banks, which have argued that the wrongdoing was isolated to midlevel employees, prefer that a subsidiary take the fall.

The currency case is expected to ensnare traders but not top-level executives. As a result, it may add fuel to the criticism that prosecutors have not charged one top executive on Wall Street. Without charges to mollify the public anger over the financial crisis, the recent cases have presented little more than a pyrrhic victory for the Justice Department.

More…

 

Jim Sinclair’s Commentary

This looks like the beginning of the New Normal 100 years war.

Isis war to extend far beyond Iraq and Syria under Obama’s proposed plan
Sources say White House plan will bless anti-Isis war for three years and ensure that Obama, like George W Bush, will hand over two wars to his successor
Spencer Ackerman in New York and Dan Roberts in Washington
Tuesday 10 February 2015 17.12 EST

Barack Obama’s proposed framework for the US-led war against the Islamic State will not restrict the battlefield to Iraq and Syria, multiple congressional sources said on Tuesday, placing the US into a second simultaneous global war that will outlast his presidency.

Several congressional sources familiar with the outlines of the proposal, all of whom expected the White House to formally unveil it on Wednesday, told the Guardian the so-called Authorization to Use Military Force (AUMF) would bless the anti-Isis war for three years.

Congressional language to retroactively justify the six-month-old US war against Isis will not, they said, scrap the broad 9/11-era authorities against al-Qaida, as some congressional Democrats had proposed, meaning the two war authorizations will coexist.

Asked if the anti-Isis AUMF opens the US to a second worldwide war against a nebulous adversary, one congressional aide answered: “Absolutely.”

Two legislative aides with knowledge of the outlines of the White House proposal said the new AUMF would clarify that the 2001 authority, which Obama has cited to justify everything from drone strikes in Yemen to detaining Taliban combatants beyond the end of US combat in Afghanistan, will no longer apply to the war against Isis.

Those military contours would abandon Obama’s current contention that his legal authorities to confront Isis in the absence of explicit congressional approval stem partially from the 2001 AUMF, a contention that has papered over the furious division between Isis and al-Qaida. The 2002 authorization for invading Iraq and deposing Saddam Hussein, his other claimed residual legislative authority, would explicitly expire.

More…

 

Jim Sinclair’s Commentary

Sheep, mule and donkey on their morning constitutional.

clip_image002

 

Jim Sinclair’s Commentary

In the West they become icons, talking heads and a financial celebrity.

China’s Solution To “Tyrannical” Billionaires Who Harm The Economy: Execution
Tyler Durden on 02/09/2015 22:25 -0500

In some countries, the ‘solution’ the state chooses for its ignominous billionaire class of inequality-garnering, economy-wrecking individuals is to either a) turn one’s back for a brief enough moment as to allow the tyrant to leave the country in search of a golden beach upon which to lament how great a trade being long European bonds would have been’ or b) enhance their wealth further on a quid pro quo basis. In China, the ‘treatment’ for corruptbillionaires who love casinos, cigars, and luxury cars is much simpler… execution.

As The Telegraph reports,

A Chinese billionaire famed for his love of casinos, cigars and luxury cars was executed on Monday in one of the most dramatic episodes yet in president Xi Jinping’s war on corruption.

Liu Han, a 49-year-old mining tycoon once worth at least £4.2 billion, was one of five alleged mafia kingpins to receive the death penalty after being convicted of offences including gun-running and murder.

The part-time God Father “tyrannised local people and seriously harmed the local economic and social order,” Xinhua, China’s official news agency, said in a brief dispatch announcing the execution.

More…

 

Jim Sinclair’s Commentary

As the EU kills Greece it to will become a partner of Russia.

Russia reportedly getting military bases in an EU state
Elena Holodny
Feb. 8, 2015, 2:38 PM

UPDATE: On Monday, Russia said it would not be “creating” any bases on Cyprus and the Cypriot foreign minister denied a “Russia deal on bases.”

——

On Sunday, news outlets reported that Cyprus offered to let Russia install air and navy bases on its territory.

It was reported that Cypriot President Nicos Anastasiades announced that the country was ready to host Russian aviation and naval bases. The official agreement on military cooperation between the two nations is expected be signed on Feb. 25, according to Lenta.ru.

“There is an old [defense] agreement, which should be renewed as is,” Anastasiades said according to Lenta.Ru. “At the same time, some additional services will be provided in the same way as we do with other countries, such as, for example, with France and Germany. Cyprus and Russia have traditionally had good relations, and this is not subject to change.”

This announcement came after Russia in late January expressed interest in having a military base in Cyprus, according to the Global Post and Greek Reporter.

More…

Posted at 4:45 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Today in Connecticut.

clip_image002

 

Another JPMorgan Banker Dies After Murder-Suicide: Chokes Wife, Stabs Himself To Death
Submitted by Tyler Durden on 02/09/2015 14:14 -0500

By now, there have been so many banker-related suicides that it has become a moot point of i) tracking them all or ii) trying to find a pattern. And yet, one name continues to stand out: JPMorgan. The bank which has been most prominent among the list of “suicided” bankers notched one more casualty over the weekend when “a JPMorgan Chase & Co. employee strangled and stabbed his wife to death before turning the knife on himself, according to police who are treating the couple’s death in Bergen County, New Jersey as a murder-suicide.”

Bloomberg reports the gruesome details according to which Michael A. Tabacchi, 27, and his wife, Iran Pars Tabacchi, 41, were found dead Friday about 11:30 p.m. in the bedroom of their Closter home after a 911 call placed by the husband’s father, Bergen County Prosecutor John Molinelli said in an interview. Closter is located in northern New Jersey, about 20 miles (32 kilometers) from midtown Manhattan.

It wasn’t a nail-gun this time. It was a knife:

Autopsy results on Sunday showed the wife died of strangulation and a stab wound to the chest while Michael Tabacchi died from a single self-inflicted stab to the chest, he said.

As his LinkedIn profile below shows, Tabacchi was an associate for JPMorgan in its global custody product unit.

More…

 

Jim Sinclair’s Commentary

Slowly but with determination the Petro dollar comes under attack. I guess full on war with Russia is now inevitable.

Moscow & Cairo to drop USD, use national currencies in bilateral trade – Putin
Published time: February 08, 2015 23:10
Edited time: February 09, 2015 10:08

Russia and Egypt might soon exclude the US dollar and use their national currencies in the settlement of accounts in bilateral trade, Russian President Vladimir Putin said in an interview to Egyptian media ahead of his Monday visit to the country.

The issue of abandoning the dollar in trade is “being actively discussed,” Putin told Al-Ahram daily newspaper ahead of his two-day trip to Egypt. The Russian president was invited for a bilateral meeting by his Egyptian counterpart Abdul Fattah al-Sisi.

“This measure will open up new prospects for trade and investment cooperation between our countries, reduce its dependence on the current trends in the world markets,” Putin said.

“I should note that we already use national currencies for trade with a number of the CIS [Commonwealth of Independent States] states, and China. This practice proves its worth; we are ready to adopt it in our relations with Egypt as well. This issue is being discussed in substance by relevant agencies of both countries.”

Egypt is a long-time and trusted partner of Russia and the relationship between the two countries has been rapidly developing, the Russian president said.

“The volume of bilateral trade has increased significantly over the past years: In 2014, it increased by almost half compared to the previous year and amounted to more than $4.5 billion,” he said urging for this trend to be strengthened.

He also praised the development of “mutually beneficial and effective” cooperation in the sector of agriculture. “Egypt is the major buyer of Russian wheat, Russia provides about 40 percent of grain consumed in the country; as for us, we import fruits and vegetables.”

More…

 

Jim Sinclair’s Commentary

The EU committed suicide by their own hand when they did not think through the economic impact on Russian sanctions of Europe itself, especially the euro.

Europe Fractures: France Pivots To Putin, Cyprus Offers Moscow Military Base, Germany-US Splinter On Ukraine
Tyler Durden on 02/08/2015 21:30 -0500

Following yesterday’s summary of the utter farce that the Minsk Summit/Ukraine “peace” deal talks have become, the various parties involved appear to be fracturing even faster today. The headlines are coming thick and fast but most prescient appears to be: DespiteJohn Kerry’s denial of any split between Germany and US over arms deliveries to Ukraine, German Foreign Minister Steinmeier slammed Washington’s strategy for being “not just risky but counterproductive.” But perhaps most significantly is France’s continued apparent pivot towards Russia… Following Francois Hollande’s calls for greater autonomy for Eastern Ukraine, former French President Nicolas Sarkozy has come out in apparent support of Russia (and specifically against the US), “we are part of a common civilization with Russia,” adding, “the interests of the Americans with the Russians are not the interests of Europe and Russia.” Even NATO appears to have given up hope of peace as Stoltenberg’s statements show little optimism and the decision by Cyprus to allow Russia to use its soil for military facilities suggests all is not at all well in the European ‘union’.

German Foreign Minister Frank-Walter Steinmeier doubled down on Germany’s rejection of weapons deliveries to Ukraine in a speech here Sunday…

*GABRIEL SAYS GERMAN SPD WOULD NEVER BACK ARMS TO UKRAINE

*EUROPE SEES U.S. ARMS DELIVERIES TO UKRAINE AS BAD IDEA: LAVROV

“I see this, to say it openly, as not just for risky but for counter-productive,” Mr. Steinmeier said at the Munich Security Conference. Mr. Steinmeier also hit back at open criticism of Germany’s position on weapons deliveries from U.S. Senators and others here on Saturday. The White House is mulling delivering weapons to Ukraine to support the country’s fight against pro-Russia separatists in the country’s east.

“Perhaps we are so insistent because we know the region a bit,” Mr. Steinmeier said.

But John Kerry says, everything’s fine… as he denies any split between U.S. and Europe on Russia policy…

Secretary of State John Kerry on Sunday denied any divisions between the U.S. and Europe over how to handle Russia, as Germany announced another high-level summit aimed at stemming the crisis in Ukraine.

More…

 

Sunset for dollar hegemony
by Bill Holter for Miles Franklin

We learned on Thursday about two very separate trips to be made on Friday.  Germany’s Angela Merkel and France’s Francois Hollande made a trek to Moscow which turned out to be a five hour meeting, while John Kerry flew into Kiev.  What were these meetings about?  Very little has been reported except http://www.bloomberg.com/news/articles/2015-02-06/merkel-putin-pledge-to-pursue-ukraine-cease-fire-after-talks

What were the goals and what was accomplished?  Presumably Mr. Kerry offered arms and assistance to Ukraine because other than “dollars”, we have nothing else to offer.  The meeting in Moscow was not so simple.  Do Germany and France see the writing on the wall?  Did they make deals with Russia regarding natural gas and the delivery logistics?  Trade?  Did they pledge to stay neutral and hope Russia did not look towards them when the real fighting begins?  Were currencies discussed?  Maybe even new ones?  Did they put distance between themselves and NATO so as to escape the Russian crosshairs?  Lots of questions and as of yet, few answers but apparently some sort of press conference for Monday and another meeting this Wednesday.   I will add one more thought, when the heads of state meet with little to no press coverage and then followed by no statement of the results with any meat on the bone whatsoever, something REALLY big was discussed!  Make no mistake, this is not about a single country, nor countries plural.  They know this is entirely about “systems” themselves and whether they can work in harmony or not work at all.

  We do know one thing for sure, Russia has mobilized her ICBM rocket launchers and will begin full scale war games.  Are these only games or are they making ready for the real thing?  I would suggest if the U.S. does in fact rearm Ukraine, these may not be “games” any more, Russia will finally retaliate.  Another possibility is that of “discovery”.  As I understand it, there are now some foreign “boots on the ground”.  Ukrainian forces are surrounded in Mariupol http://www.reuters.com/article/2015/01/26/us-ukraine-crisis-military-idUSKBN0KZ0L920150126  , it looks like they will soon to be captured or killed.  What if it turns out some of these boots are of the type “made in USA”?  We have already seen one video clip of an American combatant in Ukraine, how many more are there?  This would be very bad and would give Mr. Putin a good and verifiable reason to escalate the shoving match into a hot war.  In my opinion, Mr. Putin will not attack unless provoked directly, I believe he will just sit back and wait.  In my opinion, he would prefer to wait until “the money runs out” which I will explain further shortly.

  On the financial side, last week was all about Greece.  First, they were given an ultimatum and a line in the sand drawn for the end of February to “accept financial aid” from the West, presumably the IMF and ECB.  On Friday, this ultimatum was fast forwarded and cut to only 10 days …or else!  They have a debt payment due at the beginning of March and do not have the money.  Simply put, they are broke.  More elegantly but no less to the point, Yanis Varoufakis, Greece’s new finance minister said of the Eurozone and I quote “A clueless political personnel, in denial of the systemic nature of the crisis, is pursuing policies akin to carpet bombing the economy of proud European nations in order to save them”.  Do you see exactly what he is saying?  This is not about Greece, it’s not even about the Eurozone, this is about the systemic failure of the West’s policies and financial system.  I want to move along but this aspect of “systemic failure” will be tomorrow’s topic and why the West cannot in any fashion call a spade a spade.

  So Greece now has an ultimatum of 10 days, accept the terms of the Eurozone …or get out.  Greece doesn’t even need to request departure, the powers that be seem to be threatening to kick them out!  Let me point out another Western financial failure and one which will be “dis connected” in the future.  Ukraine now has two, possibly three weeks worth of cash left.  They also owe Russia several billion dollars for gas already delivered and used.  Mr. Putin knows this and as I said earlier, is just sitting back and waiting for the money to run out …or for them to “accept” aide from the West.  Both of these NATO countries are broke and unfortunately at the same time which obviously turns up the heat further in rather inconvenient fashion.

  Just so you didn’t miss my pun above, Russia is clearly “disconnecting” Ukraine.  Russia has already begun very seriously to divert gas shipments that were going through the Ukraine.  Russia was not being paid and some of her gas to Europe was being stolen, thus, turn off the spigot.  Geopolitically, Russia has already made a pipeline deal with Turkey which will end …you guessed it, at the Greek border!  Think this one through, Russia has already offered assistance to Greece …while Greece is being pressured by Europe to go further into debt.  Don’t you think it might be in Greece’s best interest to “do a deal” with Russia?

  What might any deal look like with Russia and thus out from under the Eurozone and NATO?  How about “connecting” to the Turkish pipeline for starters and running it through Greece to arrive in eastern Europe?  The Russians (Chinese) could finance the deal, Greece would then earn gas transit cash flows.  A pipeline would also create jobs and economic activity.  Greece would also be free to trade with Russia, their farmers could ship crops to Russia without being under the current ridiculous embargos and sanctions, again good for the Greek economy!  One last benefit might be “debt relief”.  Not that the West will forgive what the Greeks owe (because they cannot, I’ll include this in tomorrow’s piece), the Greeks can simply say “we are not paying you” …

More…

 

7 Terrifying Warnings That The Greek Disaster Is Now Set To Catapult The World Into A Global Meltdown
February 09, 2015

Today Greece has rejected bailouts ahead of the emergency meetings, Alan Greenspan has now predicted the collapse of the euro and the Greek Finance Minister has also warned that the euro will collapse if Greece exits! With that chaotic backdrop, below are 7 terrifying warnings that the Greek disaster is now set to catapult the world into a global meltdown.  These 7 crucial warnings all indicate that this crisis now has world heading toward a catastrophic outcome.

Below are the 7 terrifying warnings that the Greek disaster is now set to cataput the world into a global meltdown:

Paul Craig Roberts warned King World News that the Greek cisis is a game-changer for the entire world:

More…

 

Jim Sinclair’s Commentary

The banking industry will not like this.

Tsipras favours Greek jobless over creditors in defiant policy speech
Prime minister says government’s first priority is to tackle humanitarian crisis caused by years of austerity
Helena Smith in Athens
Sunday 8 February 2015 14.30 EST

The Greek prime minister, Alexis Tsipras, has announced his anti-austerity government programme in a defiant address that prioritised the jobless and destitute over international creditors who have lent the country more than $300bn (£200bn).

In his first policy speech before parliament, he said his government did not have the right to prolong the five-year bailout deal that has foisted austerity on Greece, and felt a duty “not to disappoint” those who had voted him into power.

“We see hope, dignity and pride returning to Greek citizens. Our obligation and duty is not to disappoint them,” he told the 300-seat house. “We realise that negotiations [with foreign lenders] won’t be easy … but we have faith in our struggle, because justice is on our side.”

Declaring his administration “a government of national salvation”, Tsipras said he would also pursue claims to win back from Germany wartime loans that Greece had been forced to make to Nazi occupiers. “I can’t overlook what is an ethical duty, a duty to history … to lay claim to the wartime debt.”

Tsipras did signal a new round of belt-tightening – but on the part of ministers and MPs. He promised to sell half of all government limousines and a government jet in a money-raising exercise, as well as trimming back on security. Tsipras said Greece’s new class of politician would set the example of frugal living. “We do not need three government aircraft. Politicians can do away with the privilege of having a car,” he said.

More…

 

The Death Of The Petrodollar Was Finally Noticed
Submitted by Tyler Durden on 02/07/2015 23:29 -0500

Three months ago, we wrote “How The Petrodollar Quietly Died, And Nobody Noticed”, in which we explained in painful detail why far from the simple macroeconomic dogma which immediately prompted the macro tourists to scream that “oil prices dropping are good for US consumers”, the collapse in the price of crude is not only a disaster for oil exporting nations – one which will lead to a series of violent “Arab Springs” across the oil-producing developed world – but far more importantly, have a massive impact on capital markets as a result of the plunge in the most financialized commodity in history.

On the death of the Petrodollar we commented that unlike previously, when petrodollar recycling funneled the proceeds from oil-exports into financial markets, helping to boost asset prices and keep the cost of borrowing down, henceforth “oil producers will effectively import capital amounting to $7.6 billion.” We added that “oil exporters are now pulling liquidity out of financial markets rather than putting money in. That could result in higher borrowing costs for governments, companies, and ultimately, consumers as money becomes scarcer.”

The conclusion was simple: “net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed  global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity – not to mention related downward pressure on US Treasury yields – is negative.”

In retrospect, it probably was not “simple enough”, because even three months ago everyone was confident that both higher yields and an increase in market liquidity are imminent. Since then not only has the yield on the 10 Year plunged to near record low levels (while 16% of global government debt now trades at negative yields), but judging by the absolute liquidity devastation in the E-Mini, in Treasurys and virtually every other asset class, few actually grasped the implications of what plunging oil really means in a world in which this most financialized of commodities plays a massive role in both the global economy and capital markets, not to mention in geopolitics, with implications far, far greater than the amateurish “yes, but gas is now cheaper” retort.

More…

 

clip_image003

 

Fearing Grexit, Greeks Turn To Gold Again
Submitted by Tyler Durden on 02/09/2015 13:05 -0500

It never fails: every time redenomination risks and the specter of the (New) Drachma rear its ugly heads, Greeks, like dutiful Austrian economists, realize that Neoliberal economics is nothing but a steaming pile of drivel that only works when everyone is “confident” and gets deeper in debt with a smile on their face while failing in every other instance, and decide that the time has come to convert their paper wealth into hard assets. It happened in 2010, in 2012, and now that Greece is on the verge of its third Grexit in the past 5 years, it is happening again.

As Bloomberg reports, “Greek demand for gold coins is rising as investors search for a safe haven from the country’s political turmoil, according to the U.K. Royal Mint.”

“There has been a noticeable increase in demand in this last quarter,” Lisa Elward, head of bullion sales at the Royal Mint, said in an e-mail to Bloomberg News. “We tend to see an upsurge in sales at times of political and financial uncertainty.”

They said that with a straight face because in Greece “times of political and financial uncertainty” are now a monthly if not quarterly development. As a result, Greek investors are turning to gold. The Royal Mint declined to provide exact sales figures for the gold coins, known as Sovereigns.

Domestically, the Greek gold demand is currently run-rating at more than double that of Q4 2014: the Bank of Greece sold 5,849 Sovereign coins in January, according to an e-mail from the central bank. Bloomberg cites government data which show sales of 7,857 coins in the last quarter of 2014.

Why gold?  “The one thing everyone knows about gold is it is a good thing to hold if your currency is about to devalue,” Matthew Turner, an analyst at Macquarie Bank Ltd., said via phone. “It would be understandable for Greeks to buy gold because they are afraid of losing their money.”

More…

Yellen, We Have A Problem
Submitted by Tyler Durden on 02/09/2015 15:48 -0500

Just three things to consider: “The Fed doesn’t matter?” – so just ignore the correlation between Federal Reserve balance sheet expansion (flow) and S&P 500 performance tumbling lower. “Earnings don’t matter?” – because for now, stocks are entirely ignoring the three-month plunge in consensus EPS expectations. “Macro fundamentals don’t matter?” – because if they did, US equity prices would be collapsing. Trade accordingly…

It’s the flow, stupid…

clip_image004

It’s the earnings, stupid…

clip_image005

More…

 

Hooded gunmen fire on police in Marseille
DEBKAfile February 9, 2015, 1:13 PM (IDT)

Heavily armed French elite police forces poured into the scene after hooded gunmen fired on police in Marseille Monday when Prime Minister Manuel Valls was on his way to visit the southern French city. They have cordoned off the area. Unconfirmed sources say that the head of police was shot at by one of the Kalashnikov-armed men. The attack took place in a high-crime, low-cost housing district of Marseille. The town is known both for its large North African community and gang wars. Islamist radicals and criminal gangs often join forces in its tense ghetto neighborhoods. There is no initial word on casualties. Developing…

More…

 

Jim Sinclair’s Commentary

This could be the Black Swan of all Black Swans when it comes to weak EU partners bond markets.

Greek Contagion? Spanish/Italian Bond Risk Surge Most In 4 Months
Tyler Durden on 02/09/2015 11:20 -0500

With Spanish and Italian leaders desperately running around to any and every media outlet to proclaim themselves economically fit and deny deny deny what Greek FinMin Varoufakis said yesterday, it appears the market has a different perspective. Portuguese bond spreads are 16bps wider and Spanish and Italian bond spreads are 12bps wider – their worst day in almost 4 months – as it appears Grexit fears are starting to creep into the rest of the periphery.

clip_image006

Charts: Bloomberg

More…

 

Jim Sinclair’s Commentary

Sanction blowback will change the geography of wealth.

China and Russia-led Eurasian Economic Union may set up free trade zone
Published time: February 09, 2015 15:55

China may establish a free trade zone with the Eurasian Economic Union (EEU) in the future, says the Russian Ambassador to China Andrey Denisov. It would make trade with Russia, Belarus, Kazakhstan, Armenia, and soon Kyrgyzstan tariff-free.

“At first the Chinese were cautious about the Eurasian Trade Union; they just needed to make sure that it works. Now they are increasingly showing interest in participation with the union, not just with Kazakhstan, Belarus, Russia, Armenia, and Kyrgyzstan on an individual basis, but with the union per se,” Denisov told RIA in an interview published on Monday.

As far as I know they [the Chinese – Ed.] offered us, the members of this Union –EEU – to think long-term about the creation of a free trade zone. Well, this is probably the case, even if it’s far off in the future.

The Eurasian Economic Union includes Russia, Armenia, Belarus and Kazakhstan and was officially launched on January 1. Kyrgyzstan has said it will join, with accession expected by the end of May.

More…

 

Jim Sinclair’s Commentary

Good work on gold history. Long but worth your time.

Second Thoughts On US Official Gold Reserves Audits
BullionStar Blogs
Posted on 9 Feb 2015 by Koos Jansen

This post is a sequel to “A First Glance At US Official Gold Reserves Audits”.

What is not often covered in the media or blogosphere are the audits of the US official gold reserves stored at the US Mint, which is the custodian for 95 % (7716 tonnes) of the stash – also referred to as deep storage, and at the Federal Reserve Bank Of New York that safeguards the remaining 5 % (418 tonnes). The lawful owner of the US official gold reserves is the US Treasury. Part one covered the most recent records I could find published by the US government, in this post we’ll examine more historical records and approach this matter from a more critical angle. Because of the amount of information I found this post is split in multiple parts.

What Is A Gold Audit?

From Wikipedia:

Auditing is defined as a systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an enterprise for a stated purpose. In any auditing the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis formulates his judgment, which is communicated through his audit report.

Due to constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits.

To be sure, I’ve asked several bullion dealers about how their audits are being conducted. They all agreed an audit involves three parties: the owner of the gold, the custodian and an external (independent) auditor. The external auditor examines the gold, compares its findings with the statements of the custodian and then reports on the accuracy of the statements of the custodian to the owner of the gold. An example of an audit report by such an external auditor can be found here.

The fact that the auditor is an external party is essential; if the custodian itself would perform the audit it could easily falsify the reports and lend gold that isn’t often transferred in and out of the vaults.

What Is A Gold Assay?

Assaying gold is done to test the purity of the metal; to make sure a bar contains at least the amount of fine gold disclosed on its inscription. For assay tests often samples are taken from random bars (not from all bars of a specific inventory). From Wikipedia:

A metallurgical assay is a compositional analysis of an ore, metal, or alloy. Raw precious metals (bullion) are assayed by an assay office. Silver is assayed by titration, gold by cupellation and platinum by inductively coupled plasma optical emission spectrometry.

More…

 

Jim Sinclair’s Commentary

Greece could start a flock of Black Swans.

Ireland ‘will insist on similar deal’ if any secured by Greece
Mon, Feb 9, 2015, 10:06

Coveney says same rules must apply to Greece as to all other European Union countries

Pamela Newenham, Suzanne Lynch

Ireland will insist that any new or better deal secured by Greece will also apply to Ireland, Minister for Agriculture Simon Coveney has said.

Greek prime minister Alexis Tsipras yesterday ruled out requesting an extension of the Greek bailout when meeting his European counterparts at a summit in Brussels this week.

Rather than an extension of the bailout when it expires on February 28th, Mr Tsipras reiterated his demand for a bridge programme to tide the country over until June, when a more long-standing loan arrangement can be established.

He expressed confidence that agreement could be reached between Greece and its international lenders.

Mr Coveney said the same rules must apply to Greece as to all other European Union countries.

“What we would encourage Greece to do is exactly what Ireland has done. Which is to restructure and change the way that their debt is to be repaid so they can reduce that debt burden,” Mr Coveney said.

More…

Posted at 4:43 PM (CST) by & filed under Jim's Mailbox.

Jim,

China does this in Africa, Russia in the East and together in South and Central America.

CIGA Richard

Russia sees possibilities to implement energy, transport projects with Seoul, Pyongyang
February 09, 12:59 UTC+3

MOSCOW, February 9. /TASS/. Joint projects between Moscow, Seoul and Pyongyang, including the development of rail, gas and electric power infrastructure, will benefit Russia, South and North Korea and strengthen peace on the Korean peninsula, Russia’s ambassador to Seoul Alexander Timonin said on Monday.

“The implementation of three-partite economic projects with the participation of our country, South Korea and North Korea can open broad prospects for the development of mutually advantageous cooperation,” the Russian ambassador said.

“The connection of the TransSib [trans-Siberian railway] and the trans-Korean railroad, the laying of a gas pipeline and the construction of electricity transmission lines connecting Russia and both Koreas can bring economic dividends for project participants and contribute to strengthening peace and stability on the peninsula. Both Pyongyang and Seoul generally agree with this approach,” he said.

Work on implementing some of these projects is already under way, the Russian ambassador to Seoul said.

More…

Posted at 10:18 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Mr. Budders stole my grandson’s napping spot.

clip_image002

clip_image003

 

Jim Sinclair’s Commentary

This would be the fire button of a significant amount of OTC derivatives.

Alan Greenspan says Greece will have to leave eurozone
Only a matter of time until Syriza government is forced from euro, predicts ex-Fed chief as UK chancellor drafts plans for Grexit fallout
Sunday 8 February 2015 11.51 EST

It is only “a matter of time” before Greece is forced out of the eurozone, the former US Federal Reserve chairman Alan Greenspan forecast. The prediction came as the UK chancellor, George Osborne, said Britain was “stepping up” contingency planning for dealing with any escalation of the crisis.

The former US central bank chairman said it was hard to see any other final outcome of attempts by the new leftwing Syriza government in Athens to renegotiate the terms of the country’s €240bn (£179bn) international bailout.

“I don’t see that it helps them to be in the euro, and I certainly don’t see that it helps the rest of the eurozone, and I think it is just a matter of time before everyone recognises that parting is the best strategy,” Greenspan told BBC Radio 4’s The World This Weekend.

Osborne, who held talks in Downing Street last week with anti-austerity finance minister Yanis Varoufakis, will join fellow G20 finance ministers at a summit in Turkey on Monday where the situation in Greece will dominate discussions.

He warned that a Greek exit – also known as Grexit – would cause “real ructions” and “real instability in financial markets in Europe”.

“This standoff between Greece and the eurozone is increasing the risks every day to the British economy. That’s why I’m going tomorrow to the G20 to encourage our partners to resolve this crisis,” he told BBC1’s Andrew Marr Show.

More…

Jim Sinclair’s Commentary

It is going to be hard to camouflage this away.

Greece Gambles On "Catastrophic Armageddon" For Europe, Warns It "Only Has Weeks Of Cash Left"
Submitted by Tyler Durden on 02/08/2015 11:35 -0500

One of the bigger problems facing the new, upstart Greek government, which has set before itself the lofty goal of overturning 6 years of oppressive European policies and countless generations of Greek cronyism, corruption and tax-evasion is not so much the concern about deposit outflows and bank runs – even though it most certainly will be in the next few days unless the Tsipras government finds some resolution to the dramatic standoff with Merkel and the ECB – but something far more trivial: running out of money.

Recall that two weeks into the Greek elections, Greece was rocked by a dire, if entirely underappreciated development, when its already "tax-paying challenged" population decided to completely hold off paying any taxes in advance hopes that the Tsipras government will "overturn" austerity. We wrote:

… while there will be no official confirmation whether Greece did or did not have a bank run for months, unless of course some bank keels over and dies in the interim, one thing is certain: with an increasing probability they may not have a "continuity-promoting" government in less than two weeks, Greeks tax remittances to the government, which were almost non-existent to begin with, have ground to a halt!

According to a second Kathimerini report, budget revenues have slumped over the last few days as a result of the upcoming elections and taxpayers’ uncertainty about the future: "Most taxpayers have chosen to delay their payments, given that the positions of the two main parties leading the election polls are diametrically opposite: Poll leader SYRIZA promises to cancel the ENFIA and even write off bad loans, while ruling New Democracy acknowledges the difficulties but is avoiding raising issues that would generate problems and fiscal consequences.

The dwindling state revenues will not only hamper the next government’s fiscal moves, but, given that the fiscal gap will expand, also negotiations with the country’s creditors.

More…

Jim Sinclair’s Commentary

It is more than just possible.

Fear of Vladimir Putin grows in EU capitals amid spectre of ‘total war’
Ian Traynor, Europe editor

Friday 6 February 2015 11.12 EST

In Brussels and other European capitals, the fear of Vladimir Putin is becoming palpable. The mood has changed in a matter of weeks from one of handwringing impotence over Ukraine to one of foreboding.

The anxiety is encapsulated in the sudden rush to Moscow by Angela Merkel and François Hollande. To senior figures closely involved in the diplomacy and policymaking over Ukraine, the Franco-German peace bid is less a hopeful sign of a breakthrough than an act of despair.

“There’s nothing new in their plan, just an attempt to stop a massacre,” said one senior official.

Carl Bildt, the former Swedish foreign minister, said a war between Russia and the west was now quite conceivable. A senior diplomat in Brussels, echoing the broad EU view, said arming the Ukrainians would mean war with Russia, a war that Putin would win.

Announcing the surprise mission to Kiev and Moscow, Hollande sounded grave and solemn. The Ukraine crisis, he said, started with differences, which became a conflict, which became a war, and which now risked becoming “total war”.

Anders Fogh Rasmussen, the former Danish prime minister and until recently the head of Nato, publicly voiced fears that Putin could expand what is seen as Soviet revisionism to countries now in Nato and the EU. In the Baltics, Putin might risk a little exercise in “hybrid warfare”, he said, just to test how the western alliance would react.

More…

Posted at 6:59 PM (CST) by & filed under In The News.

clip_image001

 

Jim Sinclair’s Commentary

Mr. Williams shares the following with us.

- Payroll Benchmark Revision Nonsense˜ Altered and Inflated by Affordable Care Act Considerations? 
- Upside-Bias Factor for Annual Payrolls Increased by 161,000 to 892,000 
- Extreme Instability Apparent in New Headline Payrolls 
- January Household Survey Numbers Not Comparable with Headline December Detail 
- January 2015 Unemployment:5.7% (U.3), 11.3% (U.6), 23.2% (ShadowStats) 
- Annual Money Supply M3 Growth Jumped to 5.3% in January, Highest Since July 2009

"No. 694: January Payrolls, Employment and Revisions" 
Web-page: http://www.shadowstats.com

Jim Sinclair’s Commentary

You think a cyber currency is a safe store house of value?

Anthem: Another second largest health insurance company of America had the biggest data breach in corporate history
Posted on February 7, 2015 by Chris Middlebrooks

It had been reported that Anthem Inc., the second largest health insurance company in the world had the biggest data breach in corporate history. In an official statement the company said that more 80 million customer data had been stolen by the hackers. These information includes customer’s names, date of birth, social security numbers, street address, e-mail address and employment information. The company also informed the media that customer’s income data had also been hacked. In a statement Joseph Swedish, CEO and President of Anthem Inc. said, “Anthem was the target of a very sophisticated external cyber-attack”. He also stated that, “The hackers gained access to Anthem’s computer system and got information including names, birthdays, medical IDs, Social Security numbers, street addresses, e-mail addresses and employment information, including income data”. In another statement the spokesperson for Anthem Inc. Cindy Wakefield had confirmed that the database which was hacked had information of around 80 million customers. She said, “But we are still investigating to determine how many were impacted. At this point we believe it was tens of millions”.

In a letter to the Anthem`s consumers, CEO Swedish said, “Anthem’s own associates’ personal information — including my own — was accessed during this security breach. We join you in your concern and frustration, and I assure you that we are working around the clock to do everything we can to further secure your data”. Anthem had already appointed Mandiant, a computer security company to look into the security breach and evaluate their system. The Federal Bureau of Investigation (FBI) are also investigating the matter as the series of data Breach had happened to several companies in recent times. In a statement the FBI said, “Anthem’s initial response in promptly notifying the FBI after observing suspicious network activity is a model for other companies and organizations facing similar circumstances”. They also stated that, “Speed matters when notifying law enforcement of an intrusion”.

More…

Biden says Europeans questioning Russia sanctions ‘inappropriate, annoying’ – Spiegel
Published time: February 07, 2015 03:33
Edited time: February 07, 2015 08:42

US Vice President Joe Biden has called on European countries to show unity when it comes to sanctions against Russia, labeling the dissenting voices “inappropriate and annoying”, reported ‘Der Spiegel’, quoting the participants of the Brussels meeting.

Germany’s Der Spiegel magazine said that the US vice president’s remarks were made at a special meeting of leaders of the European parliament factions at the EU headquarters in Brussels. Biden called on European countries to ‘stand firm’ against Russia’s alleged threats to the region’s unity.

“Putin continues to call for new peace plans as his troops roll through the Ukrainian countryside and he absolutely ignores every agreement that his country has signed in the past… including in Minsk,” Biden said, referring to “little green men”, but failing to provide any exact details of Russia’s alleged military presence in the region.

Critics of the policy of sanctions against Moscow should be aware that they also benefited from the current low price of oil, Biden said. He deemed complaints made by some European states about costly sanctions against Russia “inappropriate and annoying.”

“This is the moment when the US and Europe must stand together, stand firm. Russia cannot be allowed to redraw the map of Europe. That is exactly what they are doing,” the US top official claimed during his one-day trip to Brussels to meet EU leaders on Friday. He went on to claim that “Russia continues to escalate the conflict.”

More…

Jim Sinclair’s Commentary

Certain sanctions resulted in major positive changes for Russia.

Domestic MasterCard: 5 Russian banks begin new National Payment System
Published time: February 03, 2015 13:44
Edited time: February 03, 2015 16:25

Russia’s new National Payment System is up and running. The first five Russian banks processed their initial payments via MasterCard on January 30, according to Russia’s Central Bank.

“On 30 January 2015, the first five banks, including regional ones, started processing some Russian domestic MasterCard card transactions via the National Payment System (NPS) processing center implementing settlements on these transactions via the Bank of Russia,” the bank said in a press statement Tuesday.

The transfer of Russian domestic transaction processing of international payment system cards to the NPS will be implemented in stages, and should be complete by March 31, 2015.

Although the bank’s statement didn’t list which banks were the first five to successfully process payments, previously it has been reported that Gazprombank, Rosbank, Alfa Bank, Bank Rossiya, SMP Bank, and Ural Bank for Reconstruction and Development were contenders to pioneer the flagship program.

The domestic step is the first to eventually developing an international payment platform.

Russia started an alternative to the SWIFT international payment clearing system in December amid worsening relations with the West. Moscow thought there was a threat the EU would order Russia removed from the global interbank SWIFT system, as it did with Iran in 2012 over the nuclear dispute.

More…

The Cowardly and Despicable American Presstitutes
Paul Craig Roberts

February 5, 2015. There is a brouhaha underway about an American journalist who told a story about being in a helicopter in a war zone. The helicopter was hit and had to land. Which war zone and when I don’t know. The US has created so many war zones that it is difficult to keep up with them all, and as you will see, I am not interested in the story for its own sake.

It turns out that the journalist has remembered incorrectly. He was in a helicopter in a war zone, but it wasn’t hit and didn’t have to land. The journalist has been accused of lying in order to make himself seem to be “a more seasoned war correspondent than he is.”

The journalist’s presstitute colleagues are all over him with accusations. He has even had to apologize to the troops. Which troops and why is unclear. The American requirement that everyone apologize for every word reminds me of the old Soviet practice, real or alleged by anti-communists, that required Soviet citizens to self-criticize.

National Public Radio (2-5-15) thought this story of the American journalist was so important that the program played a recording of the journalist telling his story. It sounded like a good story to me. The audience enjoyed it and was laughing. The journalist telling the story did not claim any heroism on his part or any failure on the part of the helicopter crew. It is normal for helicopters to take hits in war zones.

Having established that the journalist had actually stated that the helicopter was hit when in fact it wasn’t, NPR brought on the program a psychologist at the University of California, Irvine, an expert on “false memory.” The psychologist explained various reasons a person might have false memories, making the point that it is far from uncommon and that the journalist is most likely just another example. But the NPR presstitute still wanted to know if the journalist had intentionally lied in order to make himself look good. It was never explained why it made a journalist look good to be in a helicopter forced to land. But few presstitutes get to this depth of questioning.

More…

Jim Sinclair’s Commentary

The EU and maybe the Euro committed suicide when they adopted sanctions against Russia.

Peace plan of Merkel and Hollande is attempt to wrest initiative from US side — media
February 06, 14:35 UTC+3

PARIS, February 6. /TASS/. The Ukrainian conflict peace settlement initiative, put forward on Thursday by French President Francois Hollande and German Chancellor Angela Merkel is an attempt to politically sidestep the United States that is more and more inclined to start weapons supplies to Kiev, says an article published on Friday by France’s influential magazine L’Obs.

"The initiative is historic," writes L’Obs commentator Vincent Jauvert. "The French president and German chancellor are going to Kiev and Moscow in order to attain — through diplomacy — a deescalation of the crisis. But why they undertake this trip now as the war already lasts for months?"

According to high-ranking diplomatic sources close to Hollande, "this "dramatization" which Hollande and Merkel have resorted to is aimed at sidestepping the Americans who may try in the coming hours to impose their decision to start the delivery of weapons to Ukraine on the West."

"Washington regained the initiative after a number of European diplomatic moves, specifically by France and Germany, within the so-called ‘Normandy format,’ failed," says the L’Obs article. "Paris and Berlin are unwilling to accept this American solution they consider to be very risky… Thus, France and Germany are trying to act similar to the American administration which they distrust."

More…

Jim Sinclair’s Commentary

Right after the big USA/India meeting.

India chooses Multi-Role Transport Aircraft produced jointly with Russia, cancels tender
February 06, 12:50 UTC+3

NEW DELHI, February 6. /TASS/. India has cancelled its international tender on medium-lift military transport aircraft. The country will instead purchase Multi-Role Transport Aircraft (MTA) designed and being manufactured jointly by India and Russia, a spokesperson for India’s Defense Ministry told TASS on Friday.

He said India did not find the proposal of participants in the tender for supplying 56 aircraft worth $3 billion satisfactory. "As a result, the Defense Ministry not only declined the deal, but also cancelled the tender altogether," the spokesperson noted.

The Indian Air Force has also "reconsidered priorities in replenishing its fleet," he said. "We want to purchase multipurpose transport aircraft of the new generation – MTA. This ambitious project is being developed jointly by Russia’s United Aircraft Corporation and India’s Hindustan Aeronautics. We expect to sign the final agreement soon," the spokesperson added.

The agreement on developing a military transport aircraft with a 20-ton payload for the Air Forces of Russia and India was signed in September 2010. The sides are investing $300 million each in the project. India plans to acquire 45 aircraft, Russia will purchase around 100.

MTA will have 2 turbofan engines and maximum takeoff weight of 65 tons. The cruising speed of the aircraft will stand at 800 km/h.

More…

Richard Russell – What Central Banks Don’t Want You To Know About A $199 Trillion Nightmare
February 06, 2015

As the world continues to digest breaking news out of Greece, today the Godfather of newsletter writers, 90-year old Richard Russell, discussed what central banks don’t want you to know about a $199 trillion nightmare.  Russell also discussed what this will mean for the gold and silver markets.

Richard Russell:  "As subscribers know, I consider God’s greatest gift to be peace of mind. Gold and silver are peace of mind.

One thing I am certain of is that a hundred or a thousand years from now, silver and gold will still represent earthly wealth. If you own wealth, it is only yours while you’re alive on earth. God is the source of all wealth and we only borrow it while we are alive. Even Bill Gates and Warren Buffet know this, and they have willed their wealth to charity upon their death.  

More…

Events Now In Motion In Greece That Will Create Worldwide Chaos
February 05, 2015

Today the man who 66 days ago remarkably predicted the collapse of the euro against the Swiss franc warned King World News that events are now in motion in Greece and elsewhere that will create worldwide chaos and massive problems for mankind.

Egon von Greyerz:  “Eric, today we are standing on the cusp of life-changing events, which are unfolding worldwide.  It’s ironic that the catalyst could be a Greek drama.  With the way the negotiations are unfolding between the Greek Finance Minister, Yanis Varoufakis, and the troika, it’s hard to know if this is a Greek tragedy or a comedy.

The EU President just said that ‘Greece risks bankruptcy if they continue with the strategy.’  Well, Varoufakis responded, ‘We are already bankrupt.’….

More…

Posted at 5:13 PM (CST) by & filed under Jim's Mailbox.

Jim,

There’s more than meets the eye here.

We all know China and Russia have been developing strong economic ties lately. If China is purchasing Russia’s vast stores of oil, then somebody else must be losing the business. That someone appears to be Saudi Aramco.

Think about it… a 28+% cut in crude prices to China! Furthermore, the article goes on to state that it is RAISING prices to the USA and Western Europe. (I’m sure to make up the losses they would be taking on trying to keep China as a buyer).

That smacks of desperation. Appears to me that China is cutting the supply line of oil from the House of Saud and opening up the spigots from Russia.

This whole oil play by the West to put pressure on, and punish, Russia is certainly backfiring… BIG TIME!

All I can say is WOW!

CIGA Wolfgang Rech

Saudis Re-Unleash Oil Weapon, Slash Asia Prices By Most In 14 Years
Submitted by Tyler Durden on 02/06/2015 19:45 -0500

"This is further evidence that they are hellbent on protecting their market share in China," warns one strategist as just when US talking-heads thought things were ‘stabilizing’ Saudi Aramco slashes its official selling price for Arab Light crude by 90 cents to $2.30 a barrel less than Middle East benchmarks – the biggest discount in 14 years. As Bloomberg reports, the desert kingdom is continuing to fight for market share, and using the oil weapon by "trying to stay competitive in what is the biggest area of growth," as Middle Eastern producers are increasingly competing with cargoes from Latin America, Africa and Russia for buyers in Asia.

Biggest discouint to Asia since records began…

clip_image001

As Bloomberg reports,

Saudi Arabia, the world’s largest crude exporter, cut pricing for March oil sales to Asia, a sign that the desert kingdom is continuing to fight for market share.

State-owned Saudi Arabian Oil Co. lowered its official selling price for Arab Light crude by 90 cents to $2.30 a barrel less than Middle East benchmarks, the company said in an e-mailed statement Thursday. That’s the lowest in at least the 14 years since Bloomberg began gathering data.

“This is further evidence that they are hellbent on protecting their market share in China,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.4 billion, said by phone Thursday. “They are trying to stay competitive in what is the biggest area of growth.”

Middle Eastern producers are increasingly competing with cargoes from Latin America, Africa and Russia for buyers in Asia. China was the world’s second-biggest crude consumer after the U.S. in 2014, according to International Energy Agency data.

More…

Posted at 12:59 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Now the monetary drama gets very interesting. Greece could be the monetary event horizon straw that breaks the sleeping sheeple’s back.

Shunned Greece Agrees To Boost Economic Cooperation With Russia
Tyler Durden on 02/05/2015 21:50 -0500

It’s been an odd few days for Greece’s new PM Alexis Tsipras. From being lambasted by Jeroen Dijsselbloem, shunned by Angela Merkel’s henchmen, holding hands with Jean-Claude Juncker, and losing a key funding channel from Mario Draghi; Tsipras’ anti-austerity platform has been ‘supported’ by Barack Obama and he has been invited for a visit to Russia by Vladimir Putin, and reminded that Russia is willing (and able) to provide financial aid if asked by finance minister Anton Siluanov. So headlines this evening from ekathimerini should not be entirely surprising that Putin and Tsipras have agreed to boost cooperation in the economy and energy, tourism, culture and transport sectors; and discussed the possible creation of a pipeline to carry natural gas from Russia to Europe via Turkey and Greece.

As ekathimerini reports,

Prime Minister Alexis Tsipras and Russian President Vladimir Putin on Thursday agreed to boost bilateral ties in a telephone conversation during which the latter invited the new Greek premier to an event in Moscow in May to mark the victory over Nazism.

The two men agreed to boost cooperation in the economy and energy, tourism, culture and transport sectors. They also agreed on the need to “secure peace and stability in Ukraine,” according to a statement from Tsipras’s office. Putin expressed satisfaction at Greece’s stance at a recent summit in Brussels where Greek Foreign Minister Nikos Kotzias conveyed concerns over the prospect of additional sanctions against Russia over Ukraine.

Sources rebuffed rumors about financial support for Greece from Russia, noting that the government was looking toward its European partners for support. The two men also discussed the possible creation of a pipeline to carry natural gas from Russia to Europe via Turkey and Greece.

Meanwhile Defense Minister Panos Kammenos responded to comments by his German peer Ursula von der Leyen, according to which Greece was jeopardizing its position in NATO with its stance vis-a-vis Russia. Kammenos called her comments “unacceptable and extortionate,” noting “Greece was always on the side of the Allies when they pushed back German occupation troops.”

Friends…

clip_image001

More…

 

Canadian FinMin Blows The Narrative: US Economic Leadership “Is Simply Not Sustainable”
Tyler Durden on 02/06/2015 10:21 -0500

Happily ignoring the ‘fact’ that the unemployment rate rose in the US today, talking-heads continue to proclaim the US economy will be the economic engine of the world going forward… cleanest dirty shirt… where else are you going to invest. Of course this ignores the fact that US Macro data has been a disaster over the last 2-3 months. But there is one dissident voice who dares to speak up… Canadian Finance Minister Joe Oliver said on Friday, although the United States is carrying the world economy at the moment, “that is simply not sustainable.” Blasphemy!!

As Reuters reports,

Although the United States is carrying the world economy at the moment, “that is simply not sustainable”, and other major nations need to re-assert themselves, Canadian Finance Minister Joe Oliver said on Friday.

Oliver said in a speech that the world economy was off to a rough start in 2015 and that kick-starting growth would be the focus of a Group of 20 meeting in Turkey next week.

It appears only the stock market needs to get the joke…

clip_image002

More…

Posted at 9:00 PM (CST) by & filed under General Editorial.

**Originally posted June 9th, 2013**

Dear CIGAs,

What does “Get Out of The System (GOTS)” mean to you?

One things is as certain as Death and Taxes, You “GOTS” to go. Inertia and long term mulling over could cost you blockage of up to 83% of your assets.

The first 6 GOTS you must do.

What I strongly wish you do is free your assets from the balance sheets of the entity with which you are dealing in the entire Western world financial system, without exceptions. The official written evidence is overwhelming that in a systemic crisis of size depositors as unsecured creditors of a bank or broker by the simple act of having an account are lenders to that institution. In fact of law, the depositor, you, are very junior lenders as they are unsecured. You need to consider yourself as an informed Cypriot knowing that bail-in was coming a few months before it occurred. What would you do? My feeling is you would have done a lot more than just the thinking about it that you are doing now.

Getting out of the system is not an investment decision. GOTS is the mechanics of holding an account or asset only. That is account type, location, storage, insurance and auditing.

You need not change your investment profile if you close a tax incentive retirement account.

You need not sell anything in order to close your tax incentive retirement account.

You need not sell your gold and silver to move it to a depository that is outside of the Western financial system.

You need not stop any type of trading you are doing in any market you favor.

You need not change your taste for the currency that you use to keep deposits in.

The necessary is as follows:

1. The easiest yet the most difficult is to have your assets at your bank/broker held in true custodianship. Custodianship is not true custodianship. TRUE custodianship is when the financial entity issues you a letter that states that the assets are being held as custodian for the account holders and does not appear on the balance sheet of the financial entity. The asset is the property of the registered holder and not transferred into street name by the bank. In order to get this you have to have a big influence over your bank. Usually Main Street is screwed because where these exist are in the preferred accounts department, the home of big money. As usual, Main Street is screwed. However to demonstrate the heart of the matter, this method demands review. The man to ask about these even thought he is not in the business of this, is our CIGA Monty and his partner Tony at Guild Investment Management. He has the knowledge we seek.

2. You must get your share assets out of the name of CEDE and Company. Yes, that is the name of almost every company share you holds. That is the DTCC and street name system.

An Overview from DTCC web site:

For more than 35 years, DTCC’s family of companies has helped automate, centralize, standardize and streamline processes that are critical to the safety and soundness of the capital markets.

 

DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.

 

DTCC’s depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions.

 

DTCC operates through 10 subsidiaries – each of which serves a specific segment and risk profile within the securities industry:

 

National Securities Clearing Corporation (NSCC)
The Depository Trust Company (DTC)
Fixed Income Clearing Corporation (FICC)
DTCC Deriv/SERV LLC
The Warehouse Trust Company LLC
DTCC Derivatives Repository Ltd.
DTCC Solutions LLC
DTCC Loan/SERV LLC
EuroCCP Ltd.
Avox Ltd.

 

DTCC’s joint venture company with Thomson Reuters, Omgeo, has over 6,000 customers in 45 countries and plays a critical role in institutional post-trade processing, acting as a central information management and processing hub for brokers, investment managers and custodian banks.

 

DTCC’s joint company with Markit, MarkitSERV, combines the DTCC Deriv/SERV and Markit Wire trade confirmation platforms to cover all major asset classes including credit, interest rate, equity and commodity derivatives.

 

New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. A joint venture of NYSE Euronext and The Depository Trust & Clearing Corporation, NYPC clears interest rate products and supports the cross-margining of fixed income cash products from DTCC’s Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a “single pot”. For more information, please visit: www.nypclear.com.

 

You must own your own assets, not some made up company by the Lanka Demons of Western Finance. In order to regain your legal ownership in your account name you must demand transfer out of DTCC into Direct Registration.

The following is courtesy of the Computershare website. Questions your brokers either has no knowledge of, or will not answer for you. The system never wants to let you out. You GOTS to get out!

Yes, you can access your account and request transactions via the Internet. To do this, please go to www.computershare.com/ATT and select the “Register now” link to become an Investor Centre member. There is also a link on this page where you can “Find out more about the benefits of becoming a member.”

 

For your first-time member registration, you will need to enter:

 

– Our company name or ticker
– The Social Security Number or Taxpayer Identification Number for your AT&T Inc.

account
– The zip code for your account

 

NOTE: If you do not have an SSN or TIN, you will need your family name as shown on your account statement.

 

Once you have established your User ID and password, you will be asked to select three security questions and answers for added protection of your investment accounts. These security questions will aid you in recovering access if you lose or forget your password. Subsequent logins require only your member User ID and password to access your full portfolio of Computershare-managed holdings.

 

Yes, when in DRS you can order your shares placed into Certificate form if the company obliges.Yes, you can request a certificate for all or a portion of your whole shares by accessing your account via the Internet at www.computershare.com/ATT and following the instructions as noted before. You may also request a certificate by calling Computershare at 1-800-488-2954 using a touch-tone telephone and selecting the option “to issue shares” or by sending a written request to Computershare. Please allow seven to ten business days for the certificate to be printed and delivered by first class mail. If you choose to have a stock certificate issued for all of your uncertificated shares, any fractional share held in the Direct Service Program by Computershare as custodian will be sold and you will receive a check for the sale proceeds of that fractional share less any applicable fees as noted before. Computershare recommends that your certificates be placed in a safety deposit box in a secure financial institution. If the certificates are accidentally lost, there is a surety bond fee based upon a percentage of the current market value as of the time the shares are reported lost, plus any applicable processing fees. If you are planning to sell your shares, Computershare offers the sales facility as noted before.

 

The requirements for transferring ownership of uncertificated shares are the same as for certificate shares. In order to complete a transfer, you must submit written instructions and proper documentation, along with a Medallion Guarantee. For more information, or to request a Transfer of Ownership Form, please go to www.computershare.com/ATT and follow the instructions as noted before, or call Computershare customer service at the number appearing on your statement.

 

Yes, you can convert your shares held in certificate form into uncertificated shares by mailing your certificates to Computershare together with a letter of instruction. The certificates should not be endorsed. By depositing your shares in uncertificated form, you will eliminate the risk of loss or theft of your certificates. Certificates should be sent to Computershare at the address below by registered or certified mail, with return receipt requested, or some other form of traceable mail. We recommend you insure the mailing for 3% of the value of the shares. The insured amount represents the replacement cost that will be charged to you if your certificates are lost in transit to Computershare. Send your certificates to Computershare, P.O. Box 43084, Providence, RI 02940-3084.

 

Yes. Your broker can move shares electronically from your brokerage account to either a new or an existing account at Computershare. Please contact your broker for more information.

 

Your uncertificated shares can be moved to your brokerage account electronically through the DRS. If your broker does not participate in the DRS, you will have to request physical certificates, and then deliver the physical certificates to your broker. If your broker does participate in the DRS, you will need to supply your broker with specific information about your uncertificated account at Computershare in order for your broker to move your shares. The information you will need is printed on your statement. Please contact your broker for more information.

 

Yes, you can convert your shares held in certificate form into uncertificated shares by mailing

 

More…

DRS is freedom. DRS is the means to true ownership without an intermediary. Certification is the ultimate protection and freedom for your finances. Never certificate if you have a habit of losing your car keys or forgetting your mate’s name.

3. In order not to be bailed-in you must diversify your liquid capital to the BRICS or a Quasi BRICS. In time and privately, I will suggest banks, but for the time being know the area to keep funds is Taiwan, Singapore and Hong Kong, not Switzerland, the Bahamas or any two bit tax shelter country. If you are there then move. This may be the shortest must do but it is the most important do.

4. Storage of bullion is a very delicate subject. The first question that I strongly suggest you ask concerning the storage insurance policy is does it insure you against the storage company, any employee, any consultant or associate stealing the gold via any method including accounting fraud. The next question is what member of the big four auditing firms reviews the accountant’s statement and signs off on it as accurate and audited as compliant with International GAPP (International General Accepted Accounting as compared to US or Canadian GAPP Procedures).

Your gold must be in allocated form. Any other form is madness in today’s world. Waiting for fabrication to get your gold or silver is the scariest words I have ever heard or read. Storage should be diversified including storage in Singapore. For more information on this ask Egon von Greyerz [email protected].

5. Keep $5000 in cash and as many one ounce gold coins at home that you are willing to give up.

6. Hold a permanent residency permit in a 2nd country of your selection, taste and comfort.

I have no business arrangement nor do I receive either directly, indirectly or tangentially any payments from people I recommend. I mention them because I trust them to treat you correctly and put your affairs before their own.