In The News Today

Posted at 4:10 PM (CST) by & filed under In The News.

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Dear CIGAs,

Today gold is being supplied by the usual suspects at the $1400 – $1415 level for the second time. That suspect is the Exchange Stabilization Fund, an account that is run by the Secretary of the Treasury or his designee. The designee is an infamous major international banking firm with representatives on the floor of the COMEX.

This has taken place at key levels in gold generally outlined by the Angels. As each Angel has fallen so will this effort now at $1400-$1444.

What is infinitely more important is that the Media from day one has failed to report on what actually is happening in the Middle East. The main impact is that this phenomenon is going to accelerate the impact on society of peak oil.

The winner coming out of these major changes is Iran. The loser is the West as every state so far involved was a client or covert client of the West.

The following documentary states gold becomes the primary currency as a product of this. Do not take this situation lightly as facts here are true.

Gold is going much higher and for a longer period than anyone expects.

Collapse Movie Depicts Troubled “Peak Oil” Messenger
Published November 24, 2009

Mike Ruppert believes the end is near. It’s too late for hybrids, too late for electric vehicles, and too late for alternative energy. We’re simply going to have to learn to live without. Ruppert, a former LA cop and investigative journalist, is the focus of Collapse, a new documentary from director Chris Smith—whose previous works include American Movie and The Yes Men.

Smith’s portrait is one of a deeply concerned and troubled man whose personal misfortunes parallel the downfall he sees civilization hurtling towards. But Ruppert’s semi-apocalyptic vision for humanity is built on a simple premise that actually isn’t all that controversial: modernity is powered by oil, and one day this non-renewable resource is going to run out.

A Matter of When

As far as conspiracy theories go, “peak oil” isn’t outlandish. In fact, the US Department of Energy was concerned enough about it to commission the so-called “Hirsch Report” [pdf] in 2005. The report concluded that peak of oil production is coming—perhaps within the decade—and that governments will have to act fast to adopt serious measures to mitigate a range of terrifying consequences that might come with it.

What separates the chain-smoking Mike Ruppert, and a growing movement of peak oil alarmists from others, is that they believe a catastrophic sequence of events is either inevitable or has already begun. Collapse makes no judgments about Ruppert’s prophecies, but it also makes no effort to disguise his edginess. (At one point in the film, Ruppert has an emotional breakdown on camera.)

Ruppert deserves credit for his previous work in exposing CIA drug-smuggling operations. More recently, he’s been associated with the 9/11 truth movement. But whether or not one connects the dots on peak oil the way Ruppert does, there is an undeniable volatility in oil prices and nearly everyone—for one reason or another—agrees that we need to cut our dependence on petroleum.

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Jim Sinclair’s Commentary

The clients and the covert clients of the USA are either cutting the ties, or dropping like flies.

Pakistan’s intelligence ready to split with CIA
By KATHY GANNON and ADAM GOLDMAN, Associated Press – Thu Feb 24, 7:40 am ET

ISLAMABAD, Pakistan – Pakistan’s ISI spy agency is ready to split with the CIA because of frustration over what it calls heavy-handed pressure and its anger over what it believes is a covert U.S. operation involving hundreds of contract spies, according to a document obtained by The Associated Press and interviews with U.S. and Pakistani officials.

Such a move could seriously damage the U.S war effort in Afghanistan, limit a program targeting al-Qaida insurgents along the Pakistan frontier, and restrict Washington’s access to information in the nuclear-armed country.

According to a statement drafted by the ISI, supported by interviews with officials, an already-fragile relationship between the two agencies collapsed following the shooting death of two Pakistanis by Raymond Davis, a U.S. contracted spy who is in jail in Pakistan facing possible multiple murder charges.

"Post-incident conduct of the CIA has virtually put the partnership into question," said a media statement prepared by the ISI but never released. A copy was obtained this week by the AP.

The statement accused the CIA of using pressure tactics to free Davis.

"It is hard to predict if the relationship will ever reach the level at which it was prior to the Davis episode," the statement said. "The onus of not stalling this relationship between the two agencies now squarely lies on the CIA."

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Jim Sinclair’s Commentary

They are all troubled. It is a reasonable conclusion that if all banks in the US had to value their assets at market (there are no other real values), the system would implode.

Troubled banks rise to highest level in 18 years
By Marcy Gordon
Posted: 02/23/2011 09:06:21 PM PST

WASHINGTON — The number of banks at risk of failing made up nearly 12 percent of all federally insured banks in the final three months of 2010, the highest level in 18 years.

The Federal Deposit Insurance Corp. said Wednesday that the number of banks on its confidential "problem" list rose to 884 in the October-December quarter, up from 860 in the previous quarter. Those are banks rated by examiners as having very low capital cushions against risk.

Twenty-two banks have failed so far this year. And more banks are at risk, even as the FDIC reported the industry’s highest earnings as a group since the financial crisis hit three years ago.

Only a small fraction of the 7,657 federally insured banks — about 1.4 percent with assets of more than $10 billion — are driving the bulk of the earnings growth. They are the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.

The big banks accounted for about $20.6 billion of the industry earnings of $21.7 billion in the fourth quarter. The total earnings compared with a net loss of $1.8 billion in the same quarter of 2009. The agency said bank earnings were buoyed in the latest quarter by reduced charges for soured loans.

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Jim Sinclair’s Commentary

The events in the Middle East are going to make the long term implications of peak oil a present time reality.

Oil could hit $220 a barrel on Libya and Algeria fears, warns Nomura
Libya’s descent into civil war has led to drastic cuts in oil shipments and prompted warnings that an escalation of the crisis could see Brent crude prices double to $220 a barrel.

By Ambrose Evans-Pritchard 8:50PM GMT 23 Feb 2011

Nomura’s commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.

On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.

"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank’s oil strategist.

The warning came as Italy’s ENI announced a suspension of supplies through Libya’s gas pipeline, and a string of foreign companies evacuated staff and shut production. Libya holds Africa’s biggest oil reserves and produces 1.6m barrels a day (b/d), mostly for export to Europe.

The German driller Winthershall halted its 100,000 b/d production in Libya, while ENI stopped at a string of sites, vastly reducing its flow of 550,000 b/d. A number of producers have declared "force majeure".

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Jim Sinclair’s Commentary

Remember the old saying: "As goes Motors so goes the United States."

Where new issues are concerned, this level is a key element for large short position

GM Falls Below IPO Price as Rising Oil Dims Truck Sales Outlook
February 24, 2011, 1:46 PM EST
By Craig Trudell and David Welch

Feb. 24 (Bloomberg) — General Motors Co. fell to the lowest since its initial public offering in November as rising oil prices dimmed the outlook for truck sales after the largest U.S. automaker’s most profitable year since 1999.

GM slid $1.89, or 5.5 percent, to $32.70 at 1:21 p.m. in New York Stock Exchange composite trading. The drop marked the first day GM traded at less than its $33 initial offering price in November.

Chief Executive Officer Dan Akerson is speeding the development and introduction of new models, including more fuel- efficient cars that may sell better as gas prices rise. GM used larger discounts and sales incentives in January and February to lure buyers before vehicle introductions pick up in 2012.

“The worst-case scenario is that GM uses pricing to get them through this gap in new product they’re in, and then you combine that with oil spiking,” Nicholas Colas, chief market strategist at BNY ConvergEx Group in New York, said in a telephone interview.

Crude oil for April delivery reached $103.41 today, the highest intraday price since Sept. 29, 2008, on concerns an uprising in Libya may reduce supply.

GM, which emerged from bankruptcy in July 2009, today reported fourth-quarter net income of $510 million and $4.67 billion for 2010, the largest annual profit since its predecessor earned $6 billion in 1999. The full-year comparison excludes a $127.1 billion profit in the third quarter of 2009, when GM accounted for its post-bankruptcy recapitalization.

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Jim Sinclair’s Commentary

Here is a reason why statistics on home sales from 2008 have been cartoons.

Foreclosures make up 26% of home sales

By CNN
Posted today at 5:54 a.m.

Of all home sold in the U.S. last year, 26 percent were foreclosures and short sales, according to a RealtyTrac report released on Thursday. That’s down slightly from 2009, but a jump compared to 2008.

In Illinois, RealtyTrac said 29,194 distressed properties were sold, accounting for 26 percent of all sales last year.

“It’s like the post-holiday sales at Macy’s where they’re trying to clear out unwanted inventory,“ said Anthony Sanders, a real estate professor at George Mason University.

Homes already foreclosed on and repossessed by banks, called REOs (real estate owned), sold for an average of 36 percent less than normal sales, RealtyTrac reported. Meanwhile, the discount for homes sold while they were still in the foreclosure process (short sales) was 15 percent.

Nevada had the highest percentage of distressed sales of any state at 57 percent. That was, however, less than 2009, when 67 percent of sales there were foreclosures. In Arizona, 49 percent of sales were distressed properties; in California, 44 percent; and in Florida, 36 percent.

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Jim Sinclair’s Commentary

Just keep this in mind. It is not an outbreak of democracy.

Dispatch: Why the Outcome of Bahrain’s Unrest Matters
February 24, 2011 | 2048 GMT

Analyst Kamran Bokhari explains why the outcome of government-opposition negotiations in Bahrain is geopolitically more significant than the turmoil in Libya.

Editor’s Note: Transcripts are generated using speech-recognition technology. Therefore, STRATFOR cannot guarantee their complete accuracy.

While the world is focusing on the fighting in Libya, there is a much more profound development taking place in the Persian Gulf, particularly in the country of Bahrain, where the government is negotiating with the opposition. And the outcome of those negotiations will be far more geopolitically relevant and significant than the fighting that is taking place in Libya.

The reason why Bahrain is very important is because in any negotiation you have to have some give-and-take, and it’s likely that the Bahraini monarchy will have to give some concession to the opposition. And once that happens, it will lead to an empowerment of the opposition, 70 percent of which is Shia — 70 percent of the population of the country is Shia — and that has very large-scale implications for the region, particularly for Saudi Arabia and Kuwait. In Kuwait, the royal family and the legislature have been engaged in a tug of war for many years, and if the opposition forces within the Bahraini parliament achieve some sort of a concession from the government, that will embolden the Kuwaiti opposition forces to seek the same. And there is also the sectarian dynamic there in Kuwait, where some 30 percent of all Kuwaiti nationals — roughly about a million people — are of Shia sectarian background. And therefore, this development that is taking place or unfolding in Bahrain will have implications for Kuwait. Mind you, Kuwait is very important for the U.S. military operations in Iraq.

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