In The News Today

Posted at 1:22 PM (CST) by & filed under In The News.

Dear CIGAs,

Now that we have reached $1800 gold, what should you do?

1. Those holding gold to hedge the systemic risks of the Western Financial world simply stay in your position.
2. Traders lighten up your positions as gold approaches the next two Angels.
3. No market fails to have reactions at some point.
4. Reactions in this market will be deep, but brief when they occur.
5. The undervaluation of good gold shares has passed manic.
6. Utilization of some of your gold profits into good gold shares is pure logic.


Jim Sinclair’s Commentary

Economically, the disaster took the form of a weak compromise to raise the debt ceiling in the US. It will not go away until faced, which is not a talent of our leadership.

“Sooner or later comes a crisis in our affairs, and how we meet it determines our future happiness and success. Since the beginning of time, every form of life has been called upon to meet such crisis.”
–Robert Collier (1885-1950)


Jim Sinclair’s Commentary

Check out the latest commentary from Ron Paul.

Ron Paul “This Is Probably A Bigger Problem Than The World Has EVER Faced Before!”


Jim Sinclair’s Commentary

French banks, Greek banks, British banks or US banks, take your pick because it is all the same. Some are camouflaged by FASB, others by liquidity, but at heart, all are the same

Wall Street slumps on worries over French banks
By Edward Krudy | Reuters – 29 mins ago

NEW YORK (Reuters) – Wall Street stocks fell sharply on Wednesday on fears over possible trouble in the French banking sector that has large exposure to shaky peripheral European debt.

U.S. financial stocks led the decline as the KBW bank index slid 6.2 percent. Large financial institutions fell sharply, with Bank of America Corp down 12.2 percent to $6.93.

French banks were hit hard in Paris trading. Societe General, where U.S. traders have focused their attention, fell 16 percent. BNP Paribas fell 13.2 percent.

“France owns $350 billion worth of Italy’s debt on their banks’ books,” Dave Rovelli managing director of U.S. equity trading at Canaccord Adams, who said fears of a failure in the sector were hitting U.S. markets.

The Dow Jones industrial average dropped 342.96 points, or 3.05 percent, to 10,896.81. The Standard & Poor’s 500 Index fell 33.66 points, or 2.87 percent, to 1,138.87. The Nasdaq Composite Index shed 72.56 points, or 2.92 percent, to 2,409.96.



Jim Sinclair’s Commentary

Back or front door, QE to infinity is inescapable.

Fed May Strengthen Stimulus Pledge on Renewed Recession Concern
By Jeannine Aversa and Scott Lanman – Aug 9, 2011 5:50 AM MT

Federal Reserve officials may strengthen their commitment to record monetary stimulus as soon as today after a faltering economic recovery and a U.S. credit- rating cut provoked a rout in global stocks.

By a 52 percent to 48 percent margin, respondents in a Bloomberg News survey said the Fed would ease policy this year through monetary tools or statement language. If the central bank acts, 59 percent said it would communicate that the federal funds rate, balance sheet or both will remain especially stimulative for a longer period or more specific amount of time.

Chairman Ben S. Bernanke and his colleagues are weighing the use of more untested policy tools after two rounds of bond buying totaling $2.3 trillion failed to spur sufficient economic growth and reduce unemployment below 9 percent. The Federal Open Market Committee holds its regular meeting today in Washington following the worst day for U.S. stocks since December 2008.

“The odds of more dramatic action are higher,” said Vincent Reinhart, a former chief monetary policy strategist at the Fed. “However, they might not want to be seen as responding so directly to equity prices,” Reinhart said, adding that policy makers may wait to signal a new round of bond purchases until Bernanke gives a speech on Aug. 26 at a Fed conference at Jackson Hole, Wyoming. Reinhart is a resident scholar at the American Enterprise Institute in Washington.



Jim Sinclair’s Commentary

Celebrated by financial TV as a spontaneous outbreak of democracy, this will turn into the mess of all time.

Sharia execution urged for Mubarak
Marie Colvin
August 08, 2011 12:00AM

THE spokesman for Egypt’s Muslim Brotherhood, which portrays itself as a moderate Islamic movement, has called for execution and hand amputations if the Mubaraks are found guilty of murder and corruption.

“If a man has stolen millions of the state’s money, the penalty is that I must cut off his hand,” said Mahmoud Ghuzlan, a professor of biochemistry at Zagazig University. “There is no argument. These are God’s words.”

The group, banned for half a century, was legalised only after the fall of former president Hosni Mubarak.

Professor Ghuzlan said the penalty of amputation, mandated under sharia law, should apply to his sons Gamal — the younger, who was being groomed as heir — and Alaa, a businessman.

In a scene that transfixed the nation last week, the two brothers, both charged with profiteering, stood in court as their father lay on a trolley next to them.

The senior Mubarak, charged with responsibility for the deaths of about 850 protesters killed by his security forces, periodically craned his neck forward to peer from the defendants’ cage out at the court.

Professor Ghuzlan had no sympathy. Mr Mubarak should be hanged if convicted, although “beheading by the sword” would be more traditional, he said.