In The News Today

Posted at 10:32 AM (CST) by & filed under In The News.

My Dear Extended Family,

Twice today the manipulators hit gold at $1775 again. That adds up to 9 body blocks at that price.

The manipulation is so transparent it is sad. The manipulators own Washington and do not fear any regulator or regulation. They are free to rape and pillage.

This is 1979 all over again. If you think the big boys are going short or flat to $3500 and above you are crazy. Stop quoting gold and gold investments 26 times a day. Gold is going to and through $3500 without any doubt.

In other news, our European brothers must believe getting their name in the paper or on the wire services is some sort of heaven. Now they are all talking Spain to death. US experts (God protect me from experts) show their xenophobia common to the colonies by their well aired opinion that Europe is over and the euro has no chance of a surviving. What a surprise they are in for when the euro trades at $1.40.

It seems that Greece is an old hat. The bottom line is simple, whatever monies are required for euro members will be provided, and once the spigot is turned on, it will not be turned off.

All opinions to the contrary are simply wrong. Germany is going nowhere else. I imagine if you are European leadership and you die you keep debating your death as you are lowered into the hole and then beyond.



Jim Sinclair’s Commentary

It is always about the oil and gas.

Indonesia seeks rules of road for South China Sea
Associated Press

(AP:UNITED NATIONS) Indonesia is circulating among Southeast Asian nations a draft code of conduct for the South China Sea, hoping for progress before a regional summit in November, its foreign minister said Tuesday.

Foreign Minister Marty Natalegawa has been trying to patch up differences among Association of Southeast Asian Nations members on how to manage the maritime territorial disputes that pit China against several of its neighbors in a region where sea lanes are crucial to world trade, rich fishing grounds and potentially major reserves of natural gas and oil.

He said that the situation in the region _ also rattled by a separate island dispute between China and Japan _ is very troubling, but countries including China appreciate they have much to lose from conflict.

"There’s a recognition that the countries of the region have prospered and have developed precisely because there’s been very benign, stable conditions," Natalegawa told The Associated Press on the sidelines of the U.N. General Assembly’s annual gathering of world leaders. "This is something we don’t want to be tinkering with. It could become like a Pandora’s box."

China claims most of the South China Sea. In July it upped the ante in its sharp disagreements with the Philippines and Vietnam over who owns what by establishing a military garrison, which Beijing claims will administer a vast area of sea and tiny islands scattered across it.



Jim Sinclair’s Commentary

Working office dogs after a day of watching the gold manipulators manipulate.


Jim Sinclair’s Commentary

QE to infinity is going to have a history-making impact on Western world economics. It is called currency induced cost push inflation.

The total rank stupidity that goes out on air waves all day by the fools that still cannot understand what is taking place is almost at a spiritual level.

The end game comes in the form of currency induced cost push inflation and that is guaranteed by QE to infinity.

All the deflationary talk today is intellectual garbage.

U.S. stock indexes deflated by Fed talk
Wall Street overbought; has September correction arrived?
By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) — U.S. stock indexes fell Tuesday, surrendering gains after a nonvoting Federal Reserve member, Charles Plosser, offered a negative take on the central bank’s latest round of monetary easing.

“We still need effective fiscal policy,” said Phil Orlando, equity-market strategist at Federated Investors, referencing the limitations of central-bank action on the U.S. economy.

After rising 61 points, the Dow Jones Industrial Average DJIA -0.75%  declined 101.37 points, or 0.8%, at 13,457.55, with 25 of its 30 components losing ground, led by Caterpillar Inc. CAT -4.25% , off 4.3% after the equipment maker reduced its earnings outlook.

Bruce Bittles, chief investment strategist at R.W. Baird & Co., played down the decline, saying the market has had a big run and looking to “relieve the overbought condition.”

“Folks were looking for the market to correct in September, and that didn’t happen, and uncertainty about the [U.S.] election plays a role, too,” Bittles added.

Extending loses into a fourth session, the S&P 500 index SPX -1.05%  fell 15.3 points, or 1.1%, to 1,441.59, ending at a two-week low. The losses extended to all 10 of the S&P’s major sectors, with technology and financials hardest hit.




Jim Sinclair’s Commentary

One of the largest consumers of OTC derivatives and securitized debt has been the pension funds. They always have been the waste paper container for Wall Street.

They don’t have problems. They have a FLAMING CATASTROPHY.

States see pension crisis looming despite cuts
Published September 23, 2012
The Wall Street Journal

Almost every state in the U.S. has made cuts to its public-employee pensions, seeking to dig out from the economic downturn, but so far the measures have fallen well short of bridging a nearly $1 trillion funding gap.

Since 2009, 45 states have rolled back pension benefits for teachers, police, firefighters and other public workers, including cuts by Michigan and California this month. Next week, Republican Ohio Gov. John Kasich is expected to sign legislation requiring, for example, that certain teachers work longer and pay more toward their pensions.

The state measures show how economic forces are reshaping traditional rivalries, convincing lawmakers and labor leaders that past public pension plans are unsustainable. In Ohio and elsewhere, politically potent unions have locked arms with state officials over the pension cuts.

But the new laws have trimmed just $100 billion out of the $900 billion gap between what the states and their workers put into their retirement plans and what the states owe in retirement benefits, according to estimates prepared for The Wall Street Journal by researchers at Boston College.

Unfunded liabilities in many states grew to troubling levels after investment losses in the 2008 financial crisis depleted pension assets. While most states have approved some form of pension cuts, many have opted to apply those changes only to workers who have yet to be hired.

That means most of the savings won’t be realized for decades, when the most expensive retirement benefits come off the books. Changes made to the retirement plans of newly hired workers are expected to reduce pension costs by 25% over the next 35 years, according to Boston College estimates.

For years, part of the attraction of public service jobs has been guaranteed pensions and other benefits. That remains largely intact for current workers. Only a handful of states have replaced some guaranteed pension benefits with 401(k)-style retirement accounts that are commonplace in U.S. corporations.

Experts say the differences between public and private retirement benefits will eventually narrow as cuts to new workers’ plans take hold.

Many states have avoided reducing benefits for current workers or retirees, saying the plans have legal protections. Courts in Minnesota and Colorado have ruled that cost-of-living raises can be reduced.

"There is a lot of gray area,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. More states could try to cut future benefits for current workers because the laws aren’t clear, she said.


Jim Sinclair’s Commentary

Where are all the great men today? Where is an Eisenhower or Truman? Nowhere, and therefore nothing changes with gold going to and through $3500.

When he left his presidency, he left in a taxi cab for the railroad station. Where have our heroes gone?

You may never see this again.


Thought you’d enjoy this! It’s one you want your Children and Grandchildren to read.

Harry & Bess

Harry Truman was a different kind of President. He probably made as many, or more important decisions regarding our nation’s history as any of the other 42 Presidents preceding him. However, a measure of his greatness may rest on what he did after he left the White House.

The only asset he had when he died was the house he lived in, which was in Independence, Missouri. His wife had inherited the house from her mother and father and other than their years in the White House, they lived their entire lives there.

When he retired from office in 1952 his income was a US Army pension reported to have been $13,507.72 a year. Congress, noting that he was paying for his stamps and personally licking them, granted him an ‘allowance’ and, later, a retroactive pension of $25,000 per year.

After President Eisenhower was inaugurated, Harry and Bess drove home to Missouri by themselves. There was no Secret Service following them.

When offered corporate positions at large salaries, he declined, stating, "You don’t want me. You want the office of the President, and that doesn’t belong to me. It belongs to the American people and it’s not for sale."

Even later, on May 6, 1971, when Congress was preparing to award him the Medal of Honor on his 87th birthday, he refused to accept it, writing, "I don’t consider that I have done anything which should be the reason for any award, Congressional or otherwise."

As president he paid for all of his own travel expenses and food.

Modern politicians have found a new level of success in cashing in on the Presidency, resulting in untold wealth. Today, many in Congress also have found a way to become quite wealthy while enjoying the fruits of their offices. Political offices are now for sale (cf. Illinois ).

Good old Harry Truman was correct when he observed, "My choices in life were either to be a piano player in a whore house or a politician. And to tell the truth, there’s hardly any difference!

Jim Sinclair’s Commentary

Can you beat the US Federal Reserve in the market place?

Federal reserve buying of treasuries is non-economic buying.  Non-economic buying puts the onus on the willingness of the Fed to go QE to infinity as now discussed amongst the establishment analysts. Therefore economic reasoning translated to an investment or speculative position can easily give a wrong signal for a market. A definition of non-economic buying is manipulation.

The question then is does the short on US treasuries have more courage and more funds than the Fed? The answer is at this time (defined as 2012 and 2013), probably not.


The following two forces will remain offsetting influences 2012 and 2013.

As Clinton sounds interest rate alarm, does Congress think it’s for real?

By Tom Curry, NBC News national affairs writer

Updated at 4:50pm ET With a lame-duck session of Congress set for the weeks after the Nov. 6 election, members of Congress face the task of taking steps to reduce the deficit before inevitable interest rate hikes push the nation into a debt crisis with profound, long-lasting consequences.

Former President Bill Clinton gave a reminder of the task ahead as he renewed his warning Sunday about a surge in interest rates and a potential debt crisis.

“If interest rates were the same today as they were when I was president, the payment on the debt, that is, what the taxpayers have to pay every year, the financial debt (payments) would go from $250 billion to $650 billion a year,” Clinton warned on CBS’s Face the Nation Sunday.

Congress and President Barack Obama, he said, “can’t let that happen” – so they must strike a deal on reducing deficits and debt.

While acknowledging that the U.S. economy right now is anemic, Clinton said, “When the economy starts to grow and people start borrowing money again, and banks start loaning money to small businesses and not just big ones, interest rates will go up, because there will be more competition for money.”

Clinton has been trying for months to warn of what he sees as a danger. Last May he said as soon as the economy begins to grow “interest rates will go through the roof, the cost of financing the deficit will be staggering, and the private sector will be screaming for affordable credit.”


Jim Sinclair’s Commentary

Before you next slice of bacon you might like to see this.


Jim Sinclair’s Commentary

Who won what war?

Syrian War’s Spillover Threatens a Fragile Iraq
Published: September 24, 2012

BAGHDAD — The civil war in Syria is testing Iraq’s fragile society and fledgling democracy, worsening sectarian tensions, pushing Iraq closer to Iran and highlighting security shortcomings just nine months after American forces ended their long and costly occupation here.

Fearing that Iraq’s insurgents will unite with extremists in Syria to wage a two-front battle for Sunni dominance, Prime Minister Nuri Kamal al-Maliki recently ordered guards at the western border to block adult men, even husbands and fathers with families in tow, from crossing into Iraq along with thousands of refugees seeking to escape the grinding war next door.

Farther north, Iraqi officials have another concern, also related to the fighting across the border. Turkish warplanes have stepped up attacks on the mountain hide-outs of Kurdish insurgents galvanized by the war in Syria, underscoring Iraq’s inability to control its own airspace.

The hardening of the antagonists’ positions in Syria — reverberating across Iraq — was made clear Monday at the United Nations when the new special envoy for Syria, Lakhdar Brahimi, gave a bleak appraisal of the conflict to the Security Council and said he saw no prospect for a breakthrough anytime soon.

The Syrian war’s spillover has called attention to uncomfortable realities for American officials: despite nearly nine years of military engagement, an effort that continues today with a $19 billion weapons sales program, Iraq’s security is uncertain and its alliance with the theocratic government in Tehran is growing. Iraq’s Shiite-dominated leadership is so worried about a victory by Sunni radicals in Syria that it has moved closer to Iran, which shares a similar interest in supporting the Syrian president, Bashar al-Assad.


Jim Sinclair’s Commentary

I would think China is more apt to use gold in some form of their currency than the west is.

Technical Trading: China Voracious and Hungry For Gold, A Yuan-Backed Gold Standard?
24 September 2012, 10:35 a.m. 
By Kira McCaffrey Brecht 
Of Kitco News

(Kitco News) – Mon Sept 24—Comex December gold futures are consolidating quietly Monday morning, as the bulls pause to catch their breath just below the $1,800 per ounce level. The chart pattern remains bullish and the current developing bull flag targets potential gains to the $1,840 level.

The U.S. political season continues to ramp up into high gear, ahead of the November presidential election. While there has been some discussion about a commission to study a return to the gold standard under Republican leadership, some analysts shift the view to China and its on-going and voracious appetite for gold.

Currently, China is seen as the world’s number one (or number two depending on whose figures you believe) gold producer, followed by Australia, the U.S. Russia and South Africa.

Pete Grant, chief market analyst at USAGOLD notes that all the gold currently mined in China is "going right from the ground to the PBOC. Not an ounce hits the market. "

Don’t forget that China is sitting on the world’s largest pile of cash or foreign exchange reserves at roughly $3 billion. Compare that to the U.S. federal debt of $16 trillion and roughly half a trillion in gold reserves.