In The News Today

Posted at 7:49 PM (CST) by & filed under In The News.

Dear CIGAs,

Here is another important calendar period for the Gold Community. The third week of October 2009. Write it down

Jim Sinclair’s Commentary

Never say never has proved quite true when it comes to China taking action to protect itself against the US bred OTC derivative meltdown actions by the US Fed and Treasury.

Currency traders eye China for clues
By William L. Watts, MarketWatch
Last update: 4:30 a.m. EDT April 24, 2009

LONDON (MarketWatch) – While foreign exchange is unlikely to be the subject of bold public pronouncements when the world’s most powerful finance ministers and central bankers meet Friday in Washington, China’s call for the replacement of the U.S. dollar as the world’s leading reserve currency is likely to be a hot topic behind closed doors, currency strategists said.

Namely, foreign-exchange traders will be looking for any clues to discussions with Chinese officials as policy makers around the world attempt to piece together the implications of remarks by China central bank governor Zhou Xiauchuan in March for the eventual replacement of the U.S. dollar as the world’s main currency with special drawing rights, the quasi-currency issued by the International Monetary fund.

The implication of such a policy would be a weaker dollar, as central banks move to diversify away from the world’s largest reserve currency. And that’s something that makes a number of policy makers, including officials from the 16-nation euro zone, nervous, analysts said.

The prospect of a substantially weaker dollar is unwelcome to policy makers in the euro zone, Japan or other countries worried about their own exports.

The main thrust of China’s message is that it wants to diversify holdings of foreign exchange reserves in a way that more closely mimics the make-up of SDRs, said Simon Derrick, currency strategist at Bank of New York Mellon.


Jim Sinclair’s Commentary

1. Pakistan goes Taliban.
2. Israel makes a miscalculation.
3. Turkey is a Victim.

Turkey defends its pro-Iran stance in Geneva
Thu, 23 Apr 2009 22:29:51 GMT

Turkey has defended its delegation’s decision not to leave the Geneva conference during a speech by Iran’s President, Mahmoud Ahmadinejad.

Ahmadinejad in the UN’s Durban Review Conference in Geneva Monday slammed Israeli atrocities in Palestine and called Israel ‘a cruel and repressive racist regime’.

During his speech, many Western delegations left the conference venue in a move to protest his comments.

Turkey’s Minister for EU Affairs Egemen Bagis who is in Paris for an official visit, highlighted the importance of ties between Turkey and its neighboring Iran, IRNA reported on Thursday.

In a news conference Thursday, when Bagis was asked why the Turkish delegation did not leave the conference venue during Ahmadinejad’s speech, he replied, "Turkey and Iran have historical ties and vital economic relations."


Jim Sinclair’s Commentary

Please read and act:

Martin Armstrong is looking quite good with his insistence that April 19th would figure extremely high on the calendar of the gold community. June is the next important period. His chart of market sentiment gave you the equity rally spot on for both sides.

I point out to you talent, now you need to download his entire library and study it.

All of our incarcerated genius – Armstrong:

Use Martin Armstrong for TIMING and Alf for PRICE as I stand on the wall regardless of what is incoming to be your WATCHMAN.

All of this requests nothing from you but a bit of respect.

Jim Sinclair’s Commentary

For your information.

Possible Swine Flu Outbreak At NYC Prep School
Department Of Health Officials Testing 75 Students At St. Francis Preparatory School In Queens

As many as 75 students at St. Francis Preparatory School in Queens got sick on Thursday. More got sick on Friday. What health officials want to know is was it swine flu or something more benign.

There are mounting fears about a deadly swine flu virus that is reported to have killed as many as 60 people in Mexico, one that health officials fear has already seeped into the United States.

St. Francis Prep was ordered to cancel an evening program Friday night because the New York City Department of Health isn’t sure what made students sick Thursday and Friday with flu-like symptoms.

"I just saw lot a lot of kids lined up along the wall near the nurse’s office," sophomore Kelsey Dittmeir said.

If it’s the flu, the question is what kind of flu? And could it be the unique strain suspected in 20 recent deaths?

Tests are underway.

"It could be a strain we’ve seen before. It could be the regular flu," Dr. Ross Weiss said. "It could be flu B that happens late in the year. It could be any of those so we really can’t speculate at this point. That’s why we were very anxious to get samples to the lab and get them tested so we can find out what we are dealing with."


Jim Sinclair’s Commentary

The USA is quite concerned, but when it comes to markets it is so far from TARP or Stress Tests to factor in. There is no more important situation on the planet than Pakistan willingly going Taliban.

U.S. ‘extremely concerned’ about Taliban movements in Pakistan –
updated 9:02 p.m. EDT, Fri April 24, 2009

WASHINGTON (CNN) — The United States is keeping a close eye on Pakistan after this week’s Taliban surge into the Buner district brought them just 60 miles from the capital, Islamabad.

A Pakistani government official said Friday that the insurgents had completely withdrawn from the district by the end of the week, but a human rights group said people in Buner were reporting that local Taliban remained in the district.

And senior U.S. officials cautioned that any withdrawal by the Taliban was likely meaningless and that the fundamentalist group now holds large areas of the country with the government seemingly unable to stop them.

"We’re certainly moving closer to the tipping point," Adm. Mike Mullen, chairman of the U.S. Joint Chiefs of Staff said on NBC’s "Today" show Friday.

In the interview from Afghanistan, Mullen said he was "extremely concerned" about indications the Taliban is moving closer to Pakistan’s capital of Islamabad.


Jim Sinclair’s Commentary

Markets are totally devoid of geopolitical concerns while geopolitical concerns move absolute center stage.

Petraeus: Afghanistan could be harder than Iraq
updated 1:52 p.m. EDT, Fri April 24, 2009

(CNN) — Defeating extremists and stabilizing Afghanistan and Pakistan will require a "sustained, substantial commitment," Gen. David Petraeus, the chief of U.S. Central Command, said Friday.

Afghanistan and Pakistan contain "the most pressing transnational extremist threat in the world," he told a House appropriations subcommittee, while expressing confidence that President Obama’s strategy constitutes the type of commitment that is needed.

Obama last month announced a new plan for the region, calling for more U.S. troops, greater economic assistance, improved Afghan troop training and added civilian expertise.

Petraeus said Friday that although more military forces are clearly necessary, "they will not by themselves, be sufficient to achieve our objective."

"It is equally important that the civilian requirements for Afghanistan and Pakistan be fully met. To that end, it is essential that the respective civilian elements be provided the resources necessary to implement this strategy," he said, urging Congress to fully fund the State Department, the United States Agency for International Development and the U.S. Interagency Civilian Response Corps.