In The News Today

Posted at 10:05 PM (CST) by & filed under In The News.

Dear CIGAs,

This is where we are headed:


OTC derivatives:

"Capitalist production, therefore, develops technology, and the combining together of various processes into a social whole, only by sapping the original sources of all wealth – the soil and the labourer." 
–Karl Marx

Dollar Fundamentals Versus Dollar Chart Painting:

Let us say that Chicago’s potential bank failure is high and only 15 banks fail in every major metropolitan area. That is one dickens of a lot of failures to come. Now this is really horrible for the US dollar so what is going on? Demand for dollars provided by the Fed to bail out the world will come to an end. China and other central banks will fill the demand created by the chart painting of whale sized hedge funds. the dollar fundamentals get worse and worse. Think what happens when the whale sized hedge funds get on the short side of the dollar, which in time they will.

That will make Alf right on the gold price.

Head of MB Financial says 25-30 local banks could fail
By Becky Yerak | Tribune reporter
4:41 PM CST, March 3, 2009

One of the Chicago market’s leading lenders says it’s "very possible" that 25 to 30 banks in the Chicago area could end up failing.

MB Financial Inc. of Chicago last Friday bought certain assets and deposits of Glenwood-based Heritage Community Bank, a 92-year-old institution shut down by regulators, and MB Chief Executive Mitchell Feiger said Monday that the "transaction is a good example of what’s coming."

"The pace of bank failures is going increase, and, in fact, I think it’s going to be very high," Feiger said during a conference call Monday about the deal.

"Say if 10 percent of banks in the country fail, which I think is a very possible number, and proportionally 10 percent of the banks in the Chicago area fail, which I think is a very possible number, then 25 to 30 banks in the Chicago area will fail," he said. "There will be more opportunities like this one." Feiger didn’t identify any banks he thinks could be on the brink.

About 300 institutions insured by the Federal Deposit Insurance Corp. do business in the Chicago area.

MB has assets of about $8.8 billion. MB agreed to buy $219 million in assets from Heritage at a discount of $14.5 million. MB said it entered into a loss-share transaction with the FDIC providing MB with "substantial protection" for loan losses.



Jim Sinclair’s Commentary

This has been low profile on CNN and Bloomberg.

Posted in free trade by emsnews on March 3rd, 2009

As worldwide car sales drop like a rock, interesting things are now showing up in the statistics.  It is not what you are but where you stand, relative to others.  This month, China just passed a new road sign: more cars were sold in China than in the US.  This is very important: we no longer control world consumer markets.  It is moving East.  Japan refused to be a world market and looked only to enrich the top 10% so Japanese car sales have been declining for a decade or more.  But with the massive Chinese population indulging in this, it means the fall of world oil prices will cease and the US will begin seriously competing with the Chinese for gasoline.



Jim Sinclair’s Commentary

Many of you have no interest in the following. I do. I have an indoor pistol range in my home. It is 65 feet long and takes 800 cubic feet of air down the shooting tube every minute, and can handle up to 50 calibre. I have targets made up of SIVs. Maybe my hobby is an endangered species. Maybe we are an endangered species. Today in Washington it is starting to look like it.

HR 45 Blair Holt Firearm Licensing & Record of Sales Act of 2009.

For your Information basically this would make it illegal to own a firearm – any rifle with a clip or ANY pistol unless:

•It is registered
•You are finger printed
•You supply a current Driver’s License
•You supply your Social Security number
•You will submit to a physical and mental evaluation at any time of their choosing
•Each update – change or ownership through private or public sale must be reported and costs $25 – Failure to do so you automatically lose the right to own a firearm and are subject up to a year in jail.
•There is a child provision clause on page 16 section 305 stating a child-access provision. Gun must be locked and inaccessible to any child under 18.

They would have the right to come and inspect that you are storing your gun safely away from accessibility to children. Not doing so is punishable by up to 5 yrs. in prison.


Jim Sinclair’s Commentary

Here is an interesting concept, but first let’s put it in perspective:

  • $9.5 Trillion could pay off 100% of all the mortgages in the USA.
  • $9.5 Trillion could pay $1400 to every person on planet earth.

If all American families saved from losing their homes please stood up,

the silence would be deafening.

The means of knowing what has really happened is the standard method of detective work. FOLLOW THE MONEY.

Jim Sinclair’s Commentary

Here is your percolating next major crisis.

Welcome To PBGC

PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974. It currently protects the pensions of nearly 44 million American workers and retirees in more than 29,000 private single-employer and multiemployer defined benefit pension plans. PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums set by Congress and paid by sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and recoveries from the companies formerly responsible for the plans.


Jim Sinclair’s Commentary

The certain to come bailing out of pensions guarantees hyperinflation.

General Electric:

On this one, I told you so. They have not marked down their OTC derivatives, but if they fail to mark down their auditors will not sign off on their audit. They are coming clean on at least $24 billion lost, possibly up to $60 billion as another giant bites the bailout dust.

Hyperinflation is guaranteed by OTC derivatives.



Jim Sinclair’s Commentary

This is a growing danger that in time will threaten the entire area.

Sri Lankan Cricket Team Attacked In Pakistan, Eight Killed
March 3, 2009 5:09 a.m. EST

Lahore, Pakistan (AHN) – At least eight people were killed and six members of the Sri Lankan cricket team were injured in a shooting attacked in the country’s eastern city of Lahore on Tuesday, police said.

Unknown attackers riding on motorbikes opened fire on Sri Lankan cricket team bus near Gaddafi Stadium, according to reports.

Two civilians and six police officers who were guarding the players were killed in the attack, which happened as the team was heading for the third day’s play in the second Test against Pakistan, a police official confirmed.

Sri Lankan cricket manager Brenden Kurrupu said up to five or six players were believed to have been wounded.

Among the injured players are K Sangakkara, Ajantha Mendis and T Samaraweera, a TV channel reported quoting Pakistan Cricket Board (PCB) officials.


Jim Sinclair’s Commentary

This the weakest link internationally.

Pakistan’s drift into the hands of extremists
The intention of the attack on Sri Lanka’s cricket team was to send a clear message to Washington: Pakistan is ungovernable
Tariq Ali, Tuesday 3 March 2009 10.32 GMT

The appalling terrorist attack on the Sri Lankan cricketers in Pakistan had one aim: to demonstrate to Washington that the country is ungovernable. This is the first time that cricketers have been targeted in a land where the sport is akin to religion. It marks the death of international cricket in Pakistan for the indefinite future, but not just that, which is bad enough. The country’s future is looking more and more precarious. We do not know which particular group carried out this attack, but its identity is hardly relevant. The fact is that it took place at a time when three interrelated events had angered a large bulk of the country and provided succour to extremist groups and their patrons.

The first is undoubtedly the foolish decision by Washington (backed by Britain) to send more troops to Afghanistan, which has now united all those resisting them in that country and the North-West Frontier province of Pakistan. Instead of searching for a viable exit strategy, Obama has gone for a surge. On several occasions, I have warned that escalating the war in Afghanistan could seriously destabilise Pakistan and its army.

Second, Senator Dianne Feinstein’s revelation that the US drones being

used to target "militants" and "terrorist havens" inside Pakistan were, in fact, being despatched by the US from military and air-force bases inside Pakistan (obviously, with the approval of the Pakistani military and civilian leaders) created mayhem in the country. The shock and dismay should not be underestimated. Half-hearted government denials further fanned the flames. Since many in the country regard Zardari and his cronies running the country as US drones, the anger was multiplied.

Domestically, the country is a mess. The People’s party has learnt and forgotten nothing. Corruption is rife and stories circulate linking the money being paid by bankers directly to the president’s house. Add to this Zardari’s refusal to honour an election pledge restoring anindependent judiciary, and his decision to manipulate tame judges to disqualify his opponents has not gone down well. The controversy was aggravated by Zardari’s move to dismiss the elected government in the country’s most populous and strategically important province, the Punjab (capital: Lahore), and impose direct rule, after its chief minister apparently refused to accept a bribe in the shape of a lucrative business deal in return for abandoning the fight to restore the chief justice fired by the military leader over a year ago.


Jim Sinclair’s Commentary

Few, if any, realize the danger of Pakistan in the hands of the Taliban.

Killings, kidnappings jeopardise Pakistan Swat truce

PESHAWAR, Pakistan (AFP) — A fragile ceasefire in Pakistan’s insurgency-hit Swat valley was hanging by a thread Tuesday after two soldiers were killed in an ambush and suspected Islamists kidnapped two local officials.

Pakistani troops and Taliban fighters traded accusations about violating a two-week ceasefire in the northwest former ski resort — ripped apart by a brutal insurgency waged by Islamist hardliners trying to enforce Islamic law.

The soldiers were escorting a water tanker in Swat valley’s Matta district when a group of militants fired on them, a security official told AFP.

In the ensuing gunfight, which lasted about an hour, three soldiers were wounded, the official added on condition of anonymity.

"Two of the injured soldiers died later at a medical facility," the official told AFP on condition of anonymity.

"The militant attack is a clear violation of the peace agreement. The security forces are exercising restraint and complying with the accord," the military said in a statement.



Jim Sinclair’s Commentary

Here comes the greatest of problems due to how deeply it will anger people, both those on pension, those about to get pensions and all those workers counting on retirement some day.

Where the public is concerned this is more powerful than Wall Street Fat Cat bailouts farce.

Pension bombs going off
By: Paul Merrion March 02, 2009

Exploding pension fund shortfalls are blowing billion-dollar holes in the balance sheets of some of the Chicago area’s biggest companies, forcing them to make huge contributions to retirement plans at a time when cash flow and credit are already under stress.

Boeing Co.’s shareholder equity is now $1.2 billion in the hole thanks to an $8.4-billion gap between its pension assets and the projected cost of its obligations for 2008. At the end of 2007, Boeing had a $4.7-billion pension surplus. If its investments don’t turn around, the Chicago-based aerospace giant will have to quadruple annual contributions to its plan to about $2 billion by 2011.

Stock market losses also pounded pension funds at Abbott Laboratories Inc., Caterpillar Inc. and Exelon Corp., with others sure to emerge as companies file their annual financial reports with the Securities and Exchange Commission in coming weeks.


Jim Sinclair’s Commentary

1. Israel makes a serious misjudgment.

2. Pakistan goes Taliban.

3. Turkey becomes a victim

Turkey-Iran Relations: A Trade Partnership or a Gateway for Iran to Escape International Sanctions?
Publication: Eurasia Daily Monitor Volume: 6 Issue: 41
March 3, 2009 11:34 AM Age: 10 hrs
By: Emrullah Uslu

While the international community has been discussing whether Iran finally has the technological capacity to produce nuclear weapons, the diplomatic traffic between Turkey and Iran has been increasing. In addition to Iranian President Mahmoud Ahmadinejad’s visit to Turkey, nine meetings at the ministerial level were held in 2008 (December 20, 2008).

Iranian Foreign Minister Manouchehr Mottaki emphasized the energy deals between the two countries and said that "the train of bilateral relations is moving in a good condition" (Tehran Times, July 20, 2008).

It seems that the diplomatic traffic between the two countries will continue to increase in 2009. In January Ali Larijani, the president of the Iranian parliament, went to Turkey and met with Turkish President Abdullah Gul and Prime Minister Recep Tayyip Erdogan (CNNTurk, January 13). Moreover, the year 2009 has been designated as "Iran-Turkey Culture Year" (Cihan News Agency, August 21, 2008). Joint cultural activities have already been organized in Turkey. Marmara University and the Iranian Consulate in Istanbul, for example, have arranged an "Iran-Turkey Cultural Relations Conference" (IRNA, January 19, 2009).