Jim’s Mailbox

Posted at 7:50 AM (CST) by & filed under Jim's Mailbox.


But ever since the governing bodies started benefitting from its use, (NFA/CFTC get pennies per transaction) they have ignored the obviousness of it all. This will eventually blow up in their faces, and benefit the buyers.

JB Slear

Dear JB,

Churning is still illegal, but there are no laws for the good ole boy’s financial club. The exchanges protect HFT because it earns them big bucks. Ethics no longer exist. Today if it makes money for the inside destructive crooks it is totally ignored as illegal.


HFT and silver price ‘management’ – odds stacked against smaller investor
The almost universal use of high frequency trading (HFT) in the silver market by major institutions has distorted its day to day functioning so that old style legitimate trading can only be undertaken at a huge disadvantage.
Author: Dr Jeffrey Lewis
Posted: Friday , 21 Dec 2012

Regulation within a market tends to make it harder for legitimate traders to operate because every ‘edge’ they identify essentially becomes insider information.  Nevertheless, the powerful electronic traders are still allowed legal access to front run pricing and large orders on the exchanges by being permitted to locate their servers onsite.

Furthermore, the unusually large sell orders seen in the silver market seemingly on a daily basis, so not seem to be executed so as to maximize the selling price obtained for a commodity. Instead, such orders appear directly aimed at influencing silver market price action and forcing it to the downside.


Interestingly, today’s markets seem even easier to manipulate than at any other time in market history. This is probably due to the fact that so few of the large traders use fundamental based or discretionary trading plans, instead typically preferring to use technical analysis based systems.

These large traders, which now make up the bulk of silver market trading volume, have almost universally gone over to algorithm trading that is deliberately designed to bypass and eliminate human emotion or decision making, while at the same time speeding up deal execution dramatically.



I came across this Euro technical chart.  Enjoy its suggestion of your analysis of the Euro trend.

CIGA Albert S


Jim Sinclair’s Commentary

Words of wisdom forwarded by CIGA Jacques.

“Fiscal Cliff” put in a much better perspective.

Lesson # 1:
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let’s now remove 8 zeros and pretend it’s a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $38.50

Got It ??? ……. OK, now…

Lesson # 2: 
Here’s another way to look at the Debt Ceiling:

Let’s say, You come home from work and find there has been a sewer backup in your neighborhood and your home has sewage all the way up to your ceilings.

What do you think you should do? Raise the ceilings or remove the excreta?

Hi Jim,

You are probably aware of this quotation, but if not I found it apposite. An inscription from the Sinclair family chapel at Rosslyn: "Wine is strong, a king is stronger, women are stronger still, but truth conquers all" (1 Esdras, chapters 3 & 4).

Kind Regards,
CIGA Sinclair


Jim Sinclair’s Commentary

Here is a list of things one can learn from having a dog, said by a 7 years old in quotes.

He said, "People are born so that they can learn how to live a good life — like loving everybody all the time and being nice, right?"

The Six-year-old continued, "Well, dogs already know how to do that, so they don’t have to stay as long."

From the dogs vet upon his passing.

Remember, if a dog was the teacher you would learn things like:
    ·  When loved ones come home, always run to greet them; 
    ·  Never pass up the opportunity to go for a joyride; 
    ·  Allow the experience of fresh air and the wind in your face to be pure Ecstasy; 
    ·  Take naps;
    ·  Stretch before rising;
    ·  Run, romp, and play daily;
    ·  Thrive on attention and let people touch you;
    ·  Avoid biting when a simple growl will do;
    ·  On warm days, stop to lie on your back on the grass;
    ·  On hot days, drink lots of water and lie under a shady tree;
    ·  When you’re happy, dance around and wag your entire body;
    ·  Delight in the simple joy of a long walk;
    ·  Be loyal;
    ·  Never pretend to be something you’re not;
    ·  If what you want lies buried, dig until you find it;
    ·  When someone is having a bad day, be silent, sit close by, and nuzzle them gently;

There comes a time in life, when you walk away from all the drama and people who create it.

You surround yourself with people who make you laugh, forget the bad, and focus on the good, so, love the people who treat you right.

Think good thoughts for the ones who don’t ~ life is too short to be anything but happy.

Falling down is part of LIFE…
Getting back up is LIVING…

Euro Follow Up After November Review

Jim talked about this last week,

The euro has won its fight for survival against the US and GB. $1.45 plus is possible.

Source: More

The Euro’s message (cycle) has been up price (down DI), down price (up DI), up price (down DI), down price (up DI), up (down DI) since 2008.  How many Euro investors/traders accumulated the diffusion index (DI) hook (1,2) back in November?  After the hook, it usually trends toward negative concentration.  Jim’s suggestion that $1.45 is possible plays out.  Diffusion indices, in general, offer do not offer price predictions.  They only suggest when trend energy has turned.

Chart:  Euro (FXE) And Euro Diffusion Index (DI)


Jim Sinclair’s Commentary

CIGA Julien sends all of us CIGAs, Comrades in Golden Arms, a thoughtful Christmas gift.

In a dark world CIGAs bring a great deal of light to me. I do so deeply care about you all.


Hello Jim,

Given the recent (manipulated) plunge in gold prices, I thought it would be nice to share with the CIGA community some charts I’ve picked up from various research materials, that will definitely buck everybody up. A picture is worth a thousand words.

Best regards and Merry Christmas,
CIGA Julien








As you say: "Don’t look up!" Also don’t talk!

CIGA Dr. David

Dr. David,

Drones on domestic surveillance duties are already deployed by police and corporations. In time, they will likely be weaponised

The real problem is not the drones – it is as follows.


The coming drone attack on America
Drones on domestic surveillance duties are already deployed by police and corporations. In time, they will likely be weaponised
Naomi Wolf
guardian.co.uk, Friday 21 December 2012 19.36 GMT

People often ask me, in terms of my argument about "ten steps" that mark the descent to a police state or closed society, at what stage we are. I am sorry to say that with the importation of what will be tens of thousands of drones, by both US military and by commercial interests, into US airspace, with a specific mandate to engage in surveillance and with the capacity for weaponization – which is due to begin in earnest at the start of the new year – it means that the police state is now officially here.

In February of this year, Congress passed the FAA Reauthorization Act, with its provision to deploy fleets of drones domestically. Jennifer Lynch, an attorney at the Electronic Frontier Foundation, notes that this followed a major lobbying effort, "a huge push by […] the defense sector" to promote the use of drones in American skies: 30,000 of them are expected to be in use by 2020, some as small as hummingbirds – meaning that you won’t necessarily see them, tracking your meeting with your fellow-activists, with your accountant or your congressman, or filming your cruising the bars or your assignation with your lover, as its video-gathering whirs.

Others will be as big as passenger planes. Business-friendly media stress their planned abundant use by corporations: police in Seattle have already deployed them.

An unclassified US air force document reported by CBS (pdf) news expands on this unprecedented and unconstitutional step – one that formally brings the military into the role of controlling domestic populations on US soil, which is the bright line that separates a democracy from a military oligarchy. (The US constitution allows for the deployment of National Guard units by governors, who are answerable to the people; but this system is intended, as is posse comitatus, to prevent the military from taking action aimed at US citizens domestically.)




Happy Holidays and make sure the dogs get the best treats!

Zorro would approve…

Dear Zorro,

Happy and Merry Christmas to you and your humans.

Do not believe what the human said. Santa is coming no matter if you are good or naughty.