In The News Today

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Dear CIGAs,

Being in gold is not for the faint of heart. Very soon we will be going the other way.


Jim Sinclair’s Commentary

Under the concept outlined to you this AM of "PRETEND and EXTEND," the following guarantees a gold price of $1650 on its way to Alf and Martin’s numbers.

U.S. consumer gloom deepens.
Even as the economy inches forward, Americans have sunk deeper in their gloom over the past three months because of worries about unemployment and the economy, according to a new Bloomberg survey. Almost half of those polled now feel less financially secure than when President Obama took office in January, a sentiment that could hurt holiday season retail sales. Fewer than 1 in 3 think the economy will improve in the next six months.

Report sees slow growth ahead.
The U.S. will grow at just 2% for much of 2010, but should accelerate to 3% in 2011, as low interest rates prevail through next year and unemployment remains stuck in double digits, according to a report published by the UCLA Anderson Forecast group. "With such sluggish growth, the unemployment rate will likely peak at 10.5% in Q1 and remain at or above 10% for almost all of next year," the closely-watched report said. Last month, OECD forecast that the U.S. economy will grow a more robust 2.5% percent next year

Jim Sinclair’s Commentary

"Extend and Pretend" guarantees without any doubt that whatever stimulation is required to the level of infinity will occur.

There simply is no other choice!

Congress readies huge year-end spending bill
Lawmakers wrap the budgets of 9 Cabinet agencies into a $1.1 trillion bill
updated 3:27 p.m. MT, Tues., Dec . 8, 2009

WASHINGTON – Amtrak passengers could carry handguns in their checked baggage as part of catch-all spending legislation being finalized by Congress.

Amtrak riders could transport firearms that are unloaded and in a securely locked container checked in a baggage car, giving them rights comparable to those enjoyed by airline passengers. The Senate backed the idea in September.

The move comes as lawmakers wrap the budgets of nine Cabinet agencies into a $1.1 trillion spending bill they hope to complete by Christmas.

The measure would combine six of the dozen annual appropriations bills for the budget year that began Oct. 1. It combines a huge increase in foreign aid with an 18 percent cut to a program that helps states with the cost of incarcerating criminal illegal immigrants.

The proposal would permit detainees held at the Guantanamo Bay detention center to be transferred to the U.S. to stand trial but not to be released.


Jim Sinclair’s Commentary

I am sure glad our governing bodies don’t see any problems otherwise I’d be worried…

U.S. Mint now suspends all one ounce gold coin sales due to shortage of physical gold!
Once again the U.S. mint has had to suspend sales of all its one-ounce gold coins, and some fractional ones too, as its supplies of physical gold cannot meet the demand.
Author: Lawrence Williams
Posted:  Monday , 07 Dec 2009

LONDON – "The United States Mint has depleted its inventory of 2009 American Buffalo One Ounce Gold Bullion Coins. … No additional inventory will be made available. As additional information becomes available regarding 2010-dated American Buffalo One Once Gold Bullion Coins, you will be notified."   So said a memorandum issued Friday to authorized purchasers of U.S. Mint gold coins and reported by Jim Sinclair..

Mineweb reported only two weeks ago, on November 25th, the suspension of sales of American Gold Eagle coins by the Mint – U.S. Mint suspends American Eagle 1-ounce gold coin sales – again, which, at the time, reckoned such sales would be resumed early this month – but in the event, not only is the suspension of the Gold Eagle coin sales continuing, but also now the American Buffalo one ounce gold coin sales have also been suspended, with no new sales now planned until sometime in 2010 – although the current sharp fall in the gold price may provide the Mint with a bit of respite from its supply/demand woes.

But supply problems also persist with smaller gold coins, particularly given the enormous demand for fractional sized gold coins following the suspension of the one ounce Gold Eagles. Thus the Mint was forced to issue a second memo on Friday saying "the American Eagle Gold Tenth-Ounce Coin inventory was depleted" and that "inventory for the half-ounce and quarter-ounce coins remains very limited." Following the sale of these remaining gold coins on Friday, the Mint anticipated that it would again offer all fractional sizes by mid-December, but in an allocation process.

On a more positive note for the Mint, the resumption of American Silver Eagle bullion sales will resume today. These silver coins were suspended along with the one ounce gold coins a week ago – also due to depletion.


Jim Sinclair’s Commentary

More proof of the thesis “PRETEND and EXTEND,” which stands on the premise of a positive economic event from stimulants.

Like drugs, to get your fix you need more all the time. Wait until you see the withdrawal.

Liquidity and stimulus to infinity is the street level prescription

Geithner: bailout program extended to October
Dec 9, 12:36 PM (ET)

WASHINGTON (AP) – Treasury Secretary Timothy Geithner told Congress Wednesday that the administration will extend the government’s financial bailout program until next fall, saying it’s needed to protect against fresh economic shocks.

In a letter to House and Senate leaders, Geithner said the extension is "necessary to assist American families and stabilize financial markets."

Money from the $700 billion taxpayer-funded bailout program has helped rescue big Wall Street firms, auto companies and others. That’s angered many Americans, who feel the government hasn’t provided them with relief from high unemployment and rising home foreclosures.

The Troubled Asset Relief Program that Congress passed during the height of the financial crisis in October 2008 was scheduled to expire at the end of the year. Geithner said it will be extended until Oct. 3, 2010. He has the authority to extend the TARP simply by notifying lawmakers.

"The recovery of our financial system remains incomplete," Geithner told lawmakers. "And, near-term shocks to that system could undermine the economic recovery we have seen to date."


Jim Sinclair’s Commentary

In Iraq, but more so in Afghanistan, these people have been fighting for generations.

They know their children will avenge them therefore the conflict will go on forever.

When people refer to this as a quagmire they are not kidding.

127 dead as bombers aim for heart of government
Five devices including three suicide bombs bring carnage to Baghdad ministries on the day national elections are announced
By Patrick Cockburn
Wednesday, 9 December 2009

Car bombers yesterday killed as many as 127 people in Baghdad in a series of attacks that left the city’s streets strewn with the wreckage of burning vehicles and the charred bodies of the dead.

The five bombs, including three that were detonated by suicide bombers, exploded in succession across the Iraqi capital over the course of an hour yesterday morning, targeting a mosque, a market, a government ministry, an educational college and a court. Some 425 people were wounded.

The coordinated assault is likely to be the work of al-Qa’ida in Iraq, which has adopted the tactic of launching devastating bombing attacks about every six weeks to maximise political and psychological impact. One aim is to discredit the government’s claim that it has greatly improved security in the last couple of years. Some 155 people were killed in the last big attack by bombers on 25 October and over 122 in an earlier assault in August. The Iraqi foreign, justice and trade ministries were all targeted.

The sound of screams and police sirens followed the detonation of each bomb as a cloud of oily black smoke from burning vehicles rose over the capital. Among the buildings hit was the headquarters of the Rafidain Bank which was housing the Finance Ministry, whose building was damaged by a bomb in August.


Jim Sinclair’s Commentary

Today in the Middle East. This is definitely not in the Christmas spirit.

Iran to target Israel’s military sites if attacked
Updated: 2009-12-10 02:59

TEHRAN — Iran’s Defense Minister Brigadier General Ahmad Vahidi said Wednesday that Iran will target Israel’s military sites, including its nuclear establishments, if attacked, the state-run IRNA news agency reported.

Iran will give a crushing response to any threats posed by the "Zionist" (Israeli) forces, Vahidi told reporters upon his arrival in Damascus.

"Should the Zionist forces pose any threat against Iran, we will never hesitate to target their nuclear sites," he was quoted as saying.

Promoting relations and cooperation between the two countries and boosting defense ties are the main objectives of Vahidi’s visit to Syria.

He described Iran and Syria as "two strategic allies" that have worked for establishment of peace and stability in the region.



Jim Sinclair’s Commentary

Pakistan yesterday.

For the Night of 8 December 2009

Pakistan:  Dr. Kaleem of Rescue 1122 stated that at least 12 people were killed and 10 others injured in twin blasts in the Qasim Bela area of Multan Cantonment, near the local headquarters of the Interservices Intelligence Directorate, the News International reported 8 December.

Multan is the location of one of the Pakistan Army’s two armored attack corps. The latest attacks in Rawalpindi, Lahore and now Multan suggest ex Army and other security personnel are involved in the planning process.

Interior Minister Rehman Malik said evidence of India’s involvement in terror incidents in Pakistan have been given to the foreign office in Islamabad, APP news service reported 7 December.

These accusations appear crafted to try to deflect onto Indian agents some of the blame for Pakistan’s lethal intelligence and security failures.

The Pakistan economy is the most important potential victim of the rash of bombings and the security operations. A quick survey shows the economy has done well during the world wide recession, growing at over 5% per annum. Reserves are high but foreign direct investment has plummeted owing to the decrease in internal security.


Jim Sinclair’s Commentary

Yesterday in Turkey

Obama rebukes Turkey’s leader on Israel
December 8, 2009

WASHINGTON (JTA) — President Obama rebuked the Turkish prime minister for belligerent anti-Israel rhetoric, saying it was harming Turkey’s profile.

"In the president’s meeting with Prime Minister Erdogan yesterday, the president told the prime minister that his anti-Israel rhetoric was eroding his nation’s ability to effectively lead on the issue as it had in the past," said a statement relayed Tuesday to JTA by a U.S. official. "The president pressed the prime minister to make rebuilding Turkey’s ties with Israel a priority."

Obama and Tayyip Erdogan met Monday to discuss ties between the two nations. Turkey is seeking to reinforce its ties with the United States as it is increasingly isolated from Europe because of tensions over its candidacy for membership in the European Union and the Islamist tilt of Erdogan’s government.

Erdogan has heightened criticism of Israel more than any other Turkish leader since ties were established in the early 1950s, accusing Israel of war crimes during last winter’s Gaza war, and defending Iran’s nuclear progtam.

In remarks after the meeting, Erdogan said he hoped to resume Turkey’s role as a peace broker in the region; that role has been eroded in part because of tattered Turkey-Israel ties. He also suggested he was more conciliatory about containing Iran’s nuclear ambitions.