In The News Today

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Jim Sinclair’s Commentary

The following reasons offered at a press conference of the NY Fed (not really) assure us that Zimbabwe/Mugabe economics will never occur in the USA.

1. There was no theft of funds here.
2. The use of the trillions of dollar of bailout money is totally transparent.
3. Those that caused the problems have been dealt with severely.
4. The Balance Sheet of the US Fed is pristine.
5. The Fed will of course mop up all the excess liquidity as soon as they get set up as the Miraculous Hedge Fund, retaining goofy Madoff as their manager floating $5 trillion in the internal US credit market as China opts out.

Zimbabwe’s money man plans to keep on printing
January 1 2009

The activists print anti-Gono fliers in English and Shona and target people standing in line at banks to withdraw money. They feature cartoons of Gono loading Reserve Bank money into the back of cars or gulping down feasts, usually with his foot on a child’s skeleton.

"IT’S YOUR MONEY — TAKE IT NOW!" screams one flier.

"IF GONO STAYS WE WILL ALL DIE!" bellows another.

"Gono is the weak link in the Mugabe regime because he’s become incredibly powerful and incredibly bloated, and he’s got very few friends in the system," said one activist involved in the project, who spoke anonymously for fear of reprisals. "No ministry can get access to cash without going to Gono. He controls everything. He’s become this power-mad individual who’s loathed by the whole country."

He said other members of the group regarded the GonoGoNow project as their most dangerous anti-regime activity. "They think Gono would kill over this," said the activist.

Gono recently launched his book, "Zimbabwe’s Casino Economy," dashed off in 60 days. In an economy where most U.S. dollar transactions are banned, his book is priced at $40.

Tony Hawkins, an independent Harare-based economist whose citation awarding Gono an MBA distinction is appended, these days describes Gono’s performance as "disastrous."



Jim Sinclair’s Commentary

Pakistan today!

India Set to Show Pakistan Links to Mumbai Attacks, Times Says
By Jay Shankar

Jan. 4 (Bloomberg) — India will release evidence next week of Pakistani involvement in the terrorist attacks on Mumbai, the Times of India reported, citing officials it didn’t identify.

A detailed confession by the lone surviving terrorist, Ajmal Kasab, will highlight a report to be delivered to India-based diplomats of the U.S., U.K., China and other countries, as well as to officials in foreign capitals, the newspaper reported. A copy will also be given to Pakistan, it said.

The report includes photographs and identities of all 10 terrorists, phone logs, data from a global positioning system device and call intercepts, the paper said.

Other evidence includes a logbook recovered from the vessel that carried the terrorists from Karachi, records of satellite phones used by the attackers and transcripts of conversations between the terrorists and their “handlers” in Pakistan during the Nov. 26-29 attack, the Times reported, quoting government sources it didn’t identify.

The U.S. Federal Bureau of Investigation was granted “unprecedented” access to all the evidence and intelligence collected by India, according to the newspaper.


Jim Sinclair’s Commentary

Remember the comparative interest rate gang that declared that to be the sole determinant of a currency’s value? Where have those bulls all gone?

Evans says Fed needs to mimic below-zero rates
Sat Jan 3, 2009 9:37pm EST
By Ros Krasny

SAN FRANCISCO (Reuters) – A grim economic outlook highlights the need for the Federal Reserve to step up quantitative measures to boost growth, with official interest rates already effectively at zero, Charles Evans, president of the Chicago Fed, said on Saturday.

Evans said that based on the outlook for rising unemployment, falling industrial production and a wider output gap, economic models suggest rates should be below zero.

"If it were not constrained by zero, those models would want to push it below zero, but that’s not possible," Evans told reporters after a panel at the American Economic Association’s meeting in San Francisco.

Quantitative easing, a way to flood the banking system with large amounts of money, "is a way to mimic below-zero rates and provide support to the economy," he said.