In The News Today

Posted at 1:31 PM (CST) by & filed under In The News.

If you believe you can, you probably can. If you believe you won’t, you most assuredly won’t. Belief is the ignition switch that gets you off the launching pad.
–Denis Waitley-

 

My Dear Friends,

The MOPE is cranking. Now the focus is on the slowdown of global business pointing towards China and the improvement in employment figures in the USA. All are being interpreted as reasons for gold to retreat.

The truth is that there is no major improvement in US business. Therefore there is no reason with legs for the dollar to improve.

China has slowed down, but not reversed as was the Western experience. All this triggers the need for liquidity which is another word for more debt. The larger the debt the higher gold goes.

Relax.

This was a staged take down to keep gold under $1764, which will not succeed for long. The takedown in silver was so transparent the entire open interest traded in 30 minutes. That is action taken to adjust price, not sell volume.

Nothing is new since $248 gold and $4 silver. The actions have just become larger and equally ineffective in time.

Regards,
Jim

 

Jim Sinclair’s Commentary

The Formula of 2006 calls for this to turn into a torrent.

Judge clears way for record bankruptcy in Alabama
By Jay Reeves, Associated Press

BIRMINGHAM, Ala. – A judge has cleared the way for an Alabama county to move forward with the largest municipal bankruptcy in U.S. history, overruling Wall Streetclaims that state law didn’t allow the county to file the case.

U.S. Bankruptcy Judge Thomas Bennett issued his order late Sunday, allowing Jefferson County, the state’s largest county, to remain in bankruptcy as it attempts to sort out more than $4 billion debt linked to borrowing for the county’s sewer system.

Bennett’s decision could be reviewed by the 11th U.S. Circuit Court of Appeals, which already has been asked to consider another question in the case.

Home to the state’s largest city of Birmingham and more than 650,000 people, Jefferson County filed the largest municipal bankruptcy ever in November after three years of negotiations failed to result in a settlement to pay off the debt. Lenders asked Bennett to throw out the case during a hearing December, arguing that Alabama’s 1901 Constitution doesn’t allow Jefferson County to file a municipal bankruptcy.

Trying to stop the bankruptcy in a move that could have resulted in more negotiations, a dozen lenders led by trustee Bank of New York Mellon (BY) claimed Alabama law permits bankruptcy only for bond debt. Jefferson County has a different type of debt called warrants, they argued.

The county argued that bankers were misapplying state law in hopes of getting the case dismissed, and that any government in the state can go bankrupt no matter what kind of debt it has.

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Jim Sinclair’s Commentary

In the spirit of embarrassing transparency…

Determinations Committee Decision
Date: March 1, 2012
Determinations Committee: EMEA
Meeting Date: March 1, 2012

Issue Number: 2012022401 Has a Restructuring Credit Event occurred with respect to Hellenic Republic?

Question 1. for vote: Has a Restructuring Credit Event occurred with respect to Hellenic Republic?

Vote result: No
Votes: 15 “NO” votes – Bank of America Merrill Lynch
Barclays
Credit Suisse
Deutsche Bank AG
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
UBS
BNP Paribas
Societe Generale
Citadel Investment Group LLC
D.E. Shaw Group
BlueMountain Capital
Elliott Management Corporation
PIMCO

0  “YES” votes
Question 2. for vote: Does this DC agree to publish the statement as set out in Annex A hereto?
Vote result: YES
Votes: 15 “YES” votes – Bank of America Merrill Lynch
Barclays
Credit Suisse
Deutsche Bank AG
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
UBS
BNP Paribas
Societe Generale
Citadel Investment Group LLC
D.E. Shaw Group
BlueMountain Capital
Elliott Management Corporation
PIMCO
0  “NO” votes 

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