In The News Today

Posted at 7:20 PM (CST) by & filed under In The News.

Dear Extended Family:

Please watch the following video and keep these points in mind:

1. That it comes from CNBC.
2. That is was presented without the usual argumentation from interviewers.
3. That it errs only in saying gold is the enemy of all central banks which we know is incorrect for Asia and even the Germans who are now backing off selling. Better said, gold is the enemy of some central banks.
4. Its major reference is to the US dollar.
5. When he talks about rate increases it is under 1% and much later in time.
6. Gold will be most affected by the action in the US dollar. This is AXIOMATIC.


After that then please read the op-ed piece the video refers to below.

The referenced Wall Street Journal article by Fed Governor Kevin Warsh can be found here…

CIGA Doug said;"I didn’t know CNBC allowed such heresy on its network. As you can imagine, this is not one of the listed videos on its website."

Please stop all this worry about the price of gold. Gold is going to $1224, $1650 and then on to Alf’s and Armstrong’s numbers.



Jim Sinclair’s Commentary

As I have pointed out to you and want you to understand is the tide has turned publicly against the dollar. It has to be translated into a lower price.

What is interesting is that I have always considered the World Bank to be significantly influenced by its location.

World Bank says don’t take dollar’s place for granted
Sun Sep 27, 2009 2:18pm EDT

WASHINGTON (Reuters) – World Bank President Robert Zoellick said the United States should not take the dollar’s status as the world’s key reserve currency for granted because other options are emerging.

In excerpts released on Sunday from a speech that he is to deliver on Monday, Zoellick said global economic forces were shifting and it was time now to prepare for the fact that growth will come from multiple sources.

"The United States would be mistaken to take for granted the dollar’s place as the world’s predominant reserve currency," he said. "Looking forward, there will increasingly be other options."

Zoellick said that a meeting of Group of 20 rich and developing countries in Pittsburgh on Thursday and Friday had made "a good start" toward increased global cooperation but they will have accept global monitoring of their activities.

"Peer review will need to be peer pressure," he said.

Zoellick said that the G20, as the new chief forum for international economic cooperation, also must not forget the 160 countries left outside its structure and should try to open opportunity for them.


Jim Sinclair’s Commentary

This is very dangerous stuff. This is a redo of the tariff wars of the 30s.

The US and China getting involved in an eye for an eye tariff war leaves all blinded.

It is also quite dangerous when China is the USA’s banker, and China is by no means dollar bound.

China launches probe into imports of US chicken

BEIJING — China on Sunday started investigating complaints that American chicken products are being dumped in China and are unfairly benefiting from subsidies, adding to a string of trade disputes with Washington.

The Commerce Ministry said the probe was launched Sunday on broiler products and chicken products, following requests by Chinese companies to investigate the U.S. imports they say are hurting the domestic industry.

The investigation comes at a time of mutual finger pointing Washington and Beijing accusing the other of protectionism, which both say will hurt efforts to end the global economic crisis.

A U.S. labor union and three paper companies announced last week they had filed a new trade complaint over imports of Chinese paper. The move came a week after Beijing filed a World Trade Organization challenge to Washington’s decision to raise tariffs on imports of Chinese-made tires.


Jim Sinclair’s Commentary

How in the world are you going to have a sustainable economic recovery when US job seekers exceed openings by a record ratio of 6 to 1

U.S. Job Seekers Exceed Openings by Record Ratio
Published: September 26, 2009

Despite signs that the economy has resumed growing, unemployed Americans now confront a job market that is bleaker than ever in the current recession, and employment prospects are still getting worse.

Job seekers now outnumber openings six to one, the worst ratio since the government began tracking open positions in 2000. According to the Labor Department’s latest numbers, from July, only 2.4 million full-time permanent jobs were open, with 14.5 million people officially unemployed.

And even though the pace of layoffs is slowing, many companies remain anxious about growth prospects in the months ahead, making them reluctant to add to their payrolls.

“There’s too much uncertainty out there,” said Thomas A. Kochan, a labor economist at M.I.T.’s Sloan School of Management. “There’s not going to be an upsurge in job openings for quite a while, not until employers feel confident the economy is really growing.”

The dearth of jobs reflects the caution of many American businesses when no one knows what will emerge to propel the economy. With unemployment at 9.7 percent nationwide, the shortage of paychecks is both a cause and an effect of weak hiring.


Jim Sinclair’s Commentary

High stakes poker is being played between the US, Iran and of course Israel.

The world we live in is such a dangerous place with such evil people everywhere.

Iran test-fires short-range missiles

TEHRAN — Iran said it successfully test-fired short-range missiles during military drills Sunday by the elite Revolutionary Guard, a show of force days after the U.S. warned Tehran over a newly revealed underground nuclear facility it was secretly constructing.

Gen. Hossein Salami, head of the Revolutionary Guard Air Force, said Iran also tested a multiple missile launcher for the first time. The official English-language Press TV showed pictures of at least two missiles being fired simultaneously and said they were from Sunday’s drill in a central Iran desert. In the clip, men could be heard shouting "Allahu Akbar" as the missiles were launched.

"We are going to respond to any military action in a crushing manner and it doesn’t make any difference which country or regime has launched the aggression," state media quoted Salami as saying. He said the missiles successfully hit their targets.

The powerful Revolutionary Guard defends Iran’s clerical rulers. It has its own ground, naval and air units and its air force controls the country’s missile program.

The tests came two days after the U.S. and its allies disclosed that Iran had been secretly developing a previously unknown underground uranium enrichment facility and warned the country it must open the nuclear site to international inspection or face harsher international sanctions. The drill was planned in advance of that disclosure.


Jim Sinclair’s Commentary

There is no change in Pakistan due to the surge or killing of any famed Taliban leaders. For every leader killed there is a line of succession already in place. During the surge the Taliban just joined the refugees and walked out of harm’s way. Recruitment exceeds elimination.

Pakistan remains one of the most dangerous places on the planet to your and my best interests.

Pakistan blasts show Taliban’s ability to strike
By ZARAR KHAN (AP) – 9 hours ago

ISLAMABAD — The suicide blasts that rocked northwest Pakistan over the weekend signal the Taliban remain a threat despite intensified military operations and unmanned drone attacks targeting the group’s leaders, analysts said Sunday.

Seventeen people were killed and more than 150 wounded Saturday in two attacks hours apart in North West Frontier Province. The Taliban claimed responsibility for one of the strikes.

Pakistan is battling al-Qaida and Taliban militants close to the Afghan border blamed for scores of attacks over the last two years. The insurgents are linked to those in Afghanistan, where violence against NATO and U.S. troops is running at record levels.

The leader of the Pakistani Taliban, Baitullah Mehsud, was killed in a CIA missile strike in the northwest last month. While the militants have named a new leader, some have speculated the group may have lost some of its ability to stage attacks.

A retired former intelligence chief of the region, Asad Munir, said Saturday’s attacks were a reminder of the threat from Islamist extremists.


Jim Sinclair’s Commentary

Nothing other than the profits from OTC derivatives for the elite has been mended by the multitude of funds so far injected into the world economy.

Cash for clunkers tempted people into additional debt and will make great business for the repo man.

Money back for GM purchases will not function if there is one ding in the vehicle. Problems are as great and greater than they were one day after Lehman imploded.

Beyond Fannie and Freddie
The companies’ troubles show the danger in mixing a public mission with private ownership.
September 27, 2009

Homeownership may be the American dream, but lately it has been an expensive one for taxpayers. The deduction for mortgage interest cost about $80 billion in lost revenue in 2009, and a tax credit for home buyers in this year’s stimulus bill will add $15 billion to the tab. Taxpayers have provided Fannie Mae and Freddie Mac, two giant, troubled mortgage finance companies, nearly $100 billion that they have little chance of recouping. Mounting defaults also threaten the Federal Housing Administration, the agency that guarantees many home mortgages, raising the odds for yet another multibillion-dollar federal bailout. Meanwhile, the Federal Reserve has effectively been printing money to reduce mortgage interest rates, using the new dollars to buy more than $860 billion in mortgage-backed securities.


Jim Sinclair’s Commentary

When the hopes and dreams of the young are trashed. When additional pressure comes on those who should be enjoying some peace in their lives what do you think the impact on general CONFIDENCE in economic and government institutions will be?

With youth already challenged by temptations we never even knew existed what will happen to the future of nations?

The dead end kids
Young, unemployed and facing tough future
Last Updated: 4:45 AM, September 27, 2009
Posted: 1:34 AM, September 27, 2009

The unemployment rate for young Americans has exploded to 52.2 percent — a post-World War II high, according to the Labor Dept. — meaning millions of Americans are staring at the likelihood that their lifetime earning potential will be diminished and, combined with the predicted slow economic recovery, their transition into productive members of society could be put on hold for an extended period of time.

And worse, without a clear economic recovery plan aimed at creating entry-level jobs, the odds of many of these young adults — aged 16 to 24, excluding students — getting a job and moving out of their parents’ houses are long. Young workers have been among the hardest hit during the current recession — in which a total of 9.5 million jobs have been lost.


Jim Sinclair’s Commentary

The drop in confidence that I have anticipated in the number of days countdown is the growing international demand and presentation of alternatives for the dollar. Most people see these as isolated events. I see this as movement in time. All movements in time culminate in change. In this situation that change will be in CONFIDENCE.

Gulf single currency should be phased: Kuwait
Sun Sep 27, 1:35 pm ET

KUWAIT CITY (AFP) – Gulf states should implement a monetary union and single currency in phases, Kuwait’s central bank governorsaid in comments published on Sunday, casting further doubt on a 2010 target date.

"Due to the limited progress achieved so far… I believe that the best way is to work out an administrative plan for the monetary union and single currency and implement it in stages," Sheikh Salem Abdulaziz al-Sabah told Awan newspaper.

The six-nation Gulf Cooperation Council (GCC) plans to launch monetary union and a single currency in 2010, although many experts believe the target date is too ambitious and unrealistic.

Kuwait was one of four GCC members which in June signed an accord to create a joint monetary union council, a prelude to establishing a Gulf central bank and launching monetary union and a single currency.

OPEC kingpin Saudi Arabia, Qatar and Bahrain also signed the pact, while the remaining two members, the United Arab Emirates and Oman, did not.


Jim Sinclair’s Commentary

This is the process of change wherein economic power transits to the area of strongest currency.

Africa is not far behind as solid leadership emerges.

China, India will get more weight at IMF, World Bank

New Delhi, Sept. 26 Taking a new lead role on the global economy, the Group of 20 (G-20) nations have committed themselves to boost the weightage given to developing countries at the International Monetary Fund (IMF) and the World Bank.

The gathering at Pittsburgh, the third G-20 summit in 12 months, agreed to shift at least five per cent of the IMF quota share from over-represented to under-represented countries using the current quota formula as the basis.

This could imply gains for India and China, which are being seen as the main gainers of the proposed change, but China is likely to gain more.

It has a voting share of 3.7 per cent. The IMF quota review is slated to be completed by January 2011 and the G-20 leaders have sought an acceleration of work towards bringing the review to a successful conclusion. The Prime Minister, Dr Manmohan Singh, said in a press conference in Pittsburgh that the developing and BRIC countries had suggested seven per cent rebalancing of quota share. In that case, the developing countries’ share would have exceeded 50 per cent, he noted.

The G-20 has also agreed to phase out, over the medium term, inefficient subsidies on fossil fuels. India wants a phased reduction in order to protect the interests of the poor. Mr Shyam Saran, the Prime Minister’s special envoy on Climate Change said, “We know it (the issue) is going to be raised at the Summit. We think that the fuel subsidy has to go in a period of time, but India has to take care of the interest of the large section of its poor population”.



Jim Sinclair’s Commentary

Get used to the acronym NCUA, the "full faith and credit" of the USA insurer of Credit Unions.

They are apt to get busy in the months to come.

Keys Federal Credit Union Taken Over by NCUA on September 24th
September 25, 2009 – Credit Union Member News

Keys Federal Credit Union of Key West, Florida has been placed into conservatorship by the National Credit Union Administration (NCUA) on September 24, 2009. NCUA plans to continue credit union operations with continued uninterrupted service to members.

Members of Keys Federal Credit Union can continue to conduct normal financial transactions – deposit and access funds, make loan payments and use share drafts. Keys FCU is a full service credit union with assets of $180 million. The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.

All credit union member deposits are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.