In The News Today

Posted at 3:31 PM (CST) by & filed under In The News.

A judge of the Supreme Court may, while at home play with his grandchild and bend on all fours for the little fellow to mount his back. He may crawl around on the floor while the child rides him; but all the while, his status as a judge does not suffer diminution, nor does he forget it. So too you must always be conscious of the high calling for which you have come. You should not disgrace it by any means or through any meaningless act or thought or word.
–SSB 1964


Jim Sinclair’s Commentary

The US dollar will not be the strong currency. The euro will be.

The US and GB have been waging currency war with the euro and both will fail in their purposes. Maybe Paulson should talk to me, but then he is too big for such things as asking anyone anything.

Paulson burned by anti-Europe bets: report
Dec. 5, 2012, 6:06 a.m. EST

FRANKFURT (MarketWatch)– Hedge-fund giant John Paulson has told investors that most of his losses this year are due to bets that Europe’s debt crisis would deepen, Bloomberg reported, citing a person familiar with the matter. Paulson told clients earlier this week that he reduced those positions after European Central Bank President Mario Draghi in July said the ECB was committed to saving the euro, the report said. Paulson, who rose to fame and made billions after betting big against the subprime mortgages in 2007, told clients that the recovery in housing is among the bright spots in the U.S. economy, the report said. Paulson Credit Opportunities, with $6.1 billion in assets, rose 3.8% in October and 6% this year, Bloomberg reported. Paulson’s Advantage Plus fund, which aims to profit from events such as takeovers and bankruptices, lost 3% in October and was down 17% over the first 10 months of the year, Bloomberg said.


Jim Sinclair’s Commentary

I am not alone in my pursuits. He also is bullish on the Euro/Gold. He thinks I am too conservative.



Jim Sinclair’s Commentary

This is the tip of the iceberg. There are going to be massive embarrassments in the fringe gold and silver business.

CFTC Charges Hunter Wise Commodities, Lloyds Commodities, C.D. Hopkins Financial, United States Capital Trust, Newbridge Alliance, Blackstone Metals Group, and their Principals in Multi-Million Dollar Fraudulent Precious Metals Scheme
December 5, 2012

CFTC alleges that defendants conducted illegal, off-exchange commodity transactions, and deceived customers in connection with financed transactions in precious metals

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on December 5, 2012, it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida against Hunter Wise Commodities, LLC; Hunter Wise Services, LLC; Hunter Wise Credit, LLC; Hunter Wise Trading, LLC; Lloyds Commodities, LLC; Lloyds Commodities Credit Company, LLC; Lloyds Services, LLC; C.D. Hopkins Financial, LLC; Hard Asset Lending Group, LLC; Blackstone Metals Group, LLC; Newbridge Alliance, Inc.; United States Capital Trust, LLC; Harold Edward Martin, Jr.; Fred Jager; James Burbage; Frank Gaudino; Baris Keser; Chadewick Hopkins; John King; and David A. Moore. The complaint charges these entities and individuals with fraudulently marketing illegal, off-exchange retail commodity contracts. The complaint alleges that Hunter Wise Commodities, the orchestrator of the fraud, has taken in at least $46 million in customer funds since July 2011.

According to the CFTC complaint, the defendants claim to sell physical metals, including gold, silver, platinum, palladium, and copper, to retail customers in retail commodity transactions. Under the defendants’ retail commodity transactions investment contract, customers allegedly make a down payment on certain quantities of physical metals, usually 25 percent of the total purchase price. Defendants allegedly claim to arrange loans for the balance of the purchase price, and advise customers that their physical metals will be stored in a secure depository.


Jim Sinclair’s Commentary

Some Governors will not roll over quietly. As strange as it might seem, there is a thing called "States Rights." We older guys remember it well.

Governor McDonnell to recognize the Virginia National Guard and Virginia Defense Force with proclamation
By Mr. Cotton Puryear
December 6, 2012

RICHMOND, Va. — Governor Bob McDonnell will join Secretary of Public Safety Marla Decker in a ceremony to recognize members of the Virginia National Guard and Virginia Defense Force and present a proclamation Dec. 7, 2012, at 3:30 p.m. in the Patrick Henry Building in Richmond. McDonnell will sign a proclamation designating December 2012 as “Virginia National Guard Appreciation and Recognition Month.”

“I appreciate the incredible work of the Soldiers and Airmen of the Virginia Guard over the past year, and the professional way they have discharged the missions assigned to them,” McDonnell said. “I want to thank the men and women of the Guard and for what they have done in Virginia, in the United States and around the world. I also want to thank the Virginia Defense Force for their volunteer service and their capabilities which are a tremendous asset to the Virginia National Guard. It is an honor to serve with the great men and women of the Virginia Guard and Virginia Defense Force. I salute you for what you have done, but I know the Virginia Guard and Defense Force will no doubt be called again to to serve in harm’s way or to help their fellow citizens in their time of need. I know you will be ready to answer the call.”

For the first time since 9/11, all Virginia Army Guard and Air Guard units are home for the holidays, though about six Soldiers and Airmen are still on federal active duty in Afghanistan and other locations around the world. Since September 11, 2001, the Virginia National Guard has successfully mobilized more than 15,000 Soldiers and Airmen for missions in Iraq, Afghanistan, Bosnia, Kosovo and other locations across the world as well as homeland defense missions in the United States.

As commander in chief of the Virginia National Guard, McDonnell has called up the Virginia Guard twice in 2012 for state active duty to respond to severe weather in the Commonwealth. In June, the Virginia Guard and Virginia Defense Force brought more than 200 personnel on state active duty to support recovery operations after severe thunderstorms caused extensive damage and power outages across the state. Soldiers distributed water and ice in Bedford and conducted reconnaissance patrols in the Fredericksburg and Lexington areas. After Hurricane Sandy struck, the Virginia Guard assisted Virginia State Police and local emergency response organizations at numerous locations across Virginia, and at the height of operations had approximately 670 personnel on duty. During that time they transported 42 civilians to safety, conducted almost 60 reconnaissance patrols to assess damage and report on route trafficability and performed 10 debris reduction missions.



Jim Sinclair’s Commentary

When in practice this is the first step where gold will enter the system as a control by alarm system of the Western world new virtual reserve currency.

The BRICs do not need it. They have legs to stands on their own.

Basel III Brings Gold Back
Jay Zawatsky
December 5, 2012

All the gold ever mined aggregates to 165,000 metric tons (tonnes). That is barely enough gold to fill three Olympic-sized swimming pools.

The U.S. government is reputed to hold 8,134 tonnes, the largest gold horde of any nation.

But the United States has not added any gold to its reserves since August 1971. That is when President Nixon, seeing the rapid depletion of U.S. gold reserves stemming from European fears of an oversupply of U.S. dollars, abandoned Bretton Woods. That action ended the convertibility of the dollar (the reserve currency for the world’s central banks) into gold for government-to-government transactions.

The United States is nearly alone in its failure to supplement its gold reserves. Countries the world over have been adding to their gold reserves at a frantic pace:

Since October 2011, Turkey has added more than 123 tonnes of gold to its reserves.

Since February 2011, Mexico has purchased more than 100 tonnes of gold.

In March 2012, the Philippines added 32 tonnes to its reserves. This gold was over and above the gold purchased from its domestic mines.

Russia has been buying large quantities of gold for several years, adding 15.5 tonnes to its reserves in May 2012. Russia’s total gold reserves now stand at 911.3 tonnes, the highest level since 1993.

Thailand has raised its gold holdings by more than 80 percent since mid-2010.



Jim Sinclair’s Commentary

Machines making war. No hero pilot to make the critical decision on the spot in the heat of combat.

A detached computer game player will play the soulless gang. It will back fire.

God help us all if they blow a fuse, an electronic input fails or the onboard arms computer crashes. The machine can start a war if hacked by those that want the war.

Top Gun meets Terminator: Autonomous US stealth drone completes 1st test launch (VIDEO, PHOTOS)
Published: 30 November, 2012, 20:48

The US Navy has executed the first launch of a stealth drone set to be the first robot aircraft piloted by artificial intelligence. The “killer robot” might be the next step in the development of machines with the power to decide who lives or dies.

­Landing on a flight deck just might be the most difficult thing a naval pilot can do. But if the United States Navy has its way, it might be an operation no pilot ever has to complete again.

After five-years in the making, the X-47B Unmanned Combat Air System (UCAS) demonstrator completed its first land-based catapult launch, “marking the start for a new era of naval aviation,” the navy announced on Thursday.

With a wingspan of 62-feet (18.9m), the subsonic drone will be the first tailless aircraft ever to land on a carrier.

"The X-47B shore-based catapult launch we witnessed here today will leave a mark in history," the navy quotes Vice Adm. David Dunaway, NAVAIR commander, as saying.


Jim Sinclair’s Commentary

As certain as QE to infinity was, so are rising taxes as long as QE is utilized.



Jim Sinclair’s Commentary

Today you do the crime, you do not do the time, you simply pay the fine. This is called doing business. It is soon to be a subject of lecture series at graduate business schools.

HSBC May End Up Paying A $1.8 Billion Money Laundering Fine
Carrick Mollenkamp and Brett Wolf, Dec. 5, 2012, 8:12 PM

NEW YORK/WASHINGTON, Dec 5 (Reuters) – HSBC Holdings Plc might pay a fine of $1.8 billion as part of a settlement with U.S. law-enforcement agencies over money-laundering lapses, according to several people familiar with the matter.

The settlement with Europe’s biggest bank – which could be announced as soon as next week – will likely involve HSBC entering into a deferred prosecution agreement with federal prosecutors, said the sources, who spoke on condition of anonymity.

The potential settlement, which has been in the works for months, is emerging as a test case for just how big a signal U.S. prosecutors want to send to try to halt illicit flows of money moving through U.S. banks.

An HSBC spokesman said: "We are cooperating with authorities in ongoing investigations. The nature of discussions is confidential."

HSBC said on Nov. 5 that it set aside $1.5 billion to cover a potential fine for breaching anti-money laundering controls in Mexico and other violations, although Chief Executive Stuart Gulliver said the cost could be "significantly higher."