In The News Today

Posted at 9:35 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Regardless of our detractors, I must agree with John Williams concerning currency induced cost push inflation. A fat 20% downdraft in the US dollar would have serious international implication regarding confidence.

This man deserves his modest fee.

– Merrily We Roll Along, Towards Hyperinflation
– U.S. Sovereign-Solvency Concerns Could Resurface Quickly in Global Markets
– December Retail Sales Gain Was Statistically Insignificant;
Activity Was Blurred by Storm Impact and Unstable Seasonal Adjustments
– Despite Stable Oil, December PPI Was Hit by Lower Food and Gasoline Prices

"No. 494: December Retail Sales, PPI"


Jim Sinclair’s Commentary

China plans to be net short the US dollar. This is low profile and generally unnoticed.

The Chinese have already hedged most of the dollar risk in their multi-year dollar based purchases of minerals around the world.

These guys are going to go short the dollar with this plan.

China Focus: Office established to handle forex reserve loans

BEIJING, Jan. 14 (Xinhua) — China’s foreign exchange regulator on Monday announced that it has set up an office to handle trusted loans of the country’s foreign exchange reserves.

The creation of the office means the nation’s 3.31 trillion U.S. dollars of forex reserves can be officially loaned to domestic enterprises as commercial loans to support their overseas business expansion.

The office, named SAFE Co-Financing, will be important for creating new, innovative ways to use foreign exchange reserves that will prevent the funds from decreasing in value, according to the State Administration of Foreign Exchange (SAFE).

According to a SAFE statement, it has already issued some trusted loans from the forex reserves.


Jim Sinclair’s Commentary

I will take gold before debt to infinity.

Bernanke: Get rid of the debt ceiling
By Annalyn Kurtz @CNNMoney
January 15, 2013: 8:24 AM ET


"I think it would be a good thing if we didn’t have it," Bernanke said Monday, referring to the debt ceiling.

Federal Reserve Chairman Ben Bernanke is not a fan of the U.S. debt ceiling, an arbitrary borrowing limit set by Congress.

"I think it would be a good thing if we didn’t have it," Bernanke said, speaking at the University of Michigan on Monday.

But he added that the chances seem slim that Congress would ever get rid of it. "I don’t think that’s going to happen," he said.

The United States officially hit its $16.394 trillion legal debt limit on Dec. 31. As a result, until the debt ceiling is raised, Treasury is not allowed to borrow new money to help it pay all the country’s financial obligations.

In the meantime, the Treasury Department has resorted to "extraordinary measures" to keep paying Uncle Sam’s bills. Treasury Secretary Tim Geithner has said he expects those measures to run out between mid February and early March, setting the stage for yet another fight on Capitol Hill.

Bernanke spoke about the misconceptions surrounding the debt ceiling. Contrary to Republican rhetoric, which has suggested that raising the debt ceiling is akin to opening up the spending floodgates, he said it merely allows the government to continue paying its current bills.


Jim Sinclair’s Commentary

Sometimes in trading you can get yourself into a tough position.


Socialism is a philosophy of failure,the creed of ignorance, and the gospel of envy,its inherent virtue is the equal sharing of misery…
— Winston Churchill

Jim Sinclair’s Commentary

This could turn out to be the straw that wakes the sheeple. I wonder where the famous Pop Corn would stand on this question.



Jim Sinclair’s Commentary

My African son in law enjoying his accommodation for the night, having missed the last Ferry this evening on Lake Victoria en route to Mwanza.

His meal was made up of home grown cashews and more cashews. Notice the fine accommodation I provided. He felt so indebted to his father in law that he sent me this picture to thank me. Note how much he is smiling.



Germany plans to repatriate billions in gold from New York, Paris: report
Michael Babad
The Globe and Mail
Published Tuesday, Jan. 15 2013, 2:14 PM EST

Germany and gold
Germany’s central bank is said to be planning to repatriate thousands of tonnes of gold held at other central banks in a throwback to the Cold War.

The Bundesbank has scheduled a news conference for tomorrow, but there are no details, other than that the meeting with reporters will be about its gold reserves.

But Handelsblatt, a daily German paper, reported that the central bank will bring home some of the 1,500 tons held at the Federal Reserve in New York and more at the Bank of Paris.

The Bundesbank says it holds almost 3,400 tonnes of gold that was valued at €132.8-billion ($176.6-billion U.S.) as of Dec. 31.


Jim Sinclair’s Commentary

From my dear friend in London.

Bundesbank to pull gold from New York and Paris in watershed moment
Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris.
By Ambrose Evans-Pritchard
7:56PM GMT 15 Jan 2013

The move marks an extraodinary breakdown in trust between leading central banks and has set off ferment among gold enthusiasts, with some comparing it with France’s withdrawal of gold from the US under President Charles de Gaulle as the Bretton Woods currency system crumbled in the early 1970s.

Handelsblatt said the Bundesbank will announce on Wednesday that it intends to relocate the gold to vaults in Frankfurt, said by insiders to include parts of the old archive library. Germany has 3,396 tons of gold worth roughly £115bn, the world’s second-largest holding after the US. Most of the reserves were stored abroad for safety during the Cold War.

The bank holds an estimated 45pc of its gold at the US Federal Reserve in New York, and 11pc at the Banque de France, lower than originally thought.

A report by Germany’s budget watchdog in October revealed that the bank halved its holding in London a decade ago, a period when the Bank of England was selling part of Britain’s gold at the bottom of the market to buy euros.


Jim Sinclair’s Commentary

Don’t kid yourself. If the Bundesbank confirms this tomorrow, it is a much watershed event as De Gaulle’s demand for conversion. If the Germans do confirm tomorrow at the press conference then I will tell you the real reason why they are doing it.

Geithner’s parting shot may have back fired big time.

Germany looks to repatriate gold; less trust in Fed?
Jan. 15, 2013, 2:57 p.m. EST

(MarketWatch) — Goodbye, Big Apple. Adieu, Paris. It seems the Bundesbank could finally be ready to bow to some longstanding public pressure and bring its foreign gold reserves home.

Germany’s Handeslblatt newspaper claimed Monday night that the Bundesbank has developed a new strategy that involves fewer gold bars flung afar. The original reason for holding its gold at the New York Federal Reserve and other central banks — in places for decade as a measure of security — no longer holds, the newspaper said.

The central bank’s press office said a news conference is planned for Wednesday morning, and the topic will be gold reserves.

The German economy contracted by a larger-than-expected 0.5% in the fourth quarter of 2012. With exports slowing and the euro rising, any recovery for Germany or the rest of the euro zone in 2013 will be gradual.

The relationship between a central bank and its gold are closely watched by gold investors, since central banks hold so much of the world’s bullion supply. The Bundesbank’s expected move, and the possibility of more details, renewed questions over the size of the central bank’s holdings and what it plans to do with it — particularly as Europe wrestles with a prolonged economic crisis.


Jim Sinclair’s Commentary

The price of gold in the cash market can solve all the monetary problems of the world now about to explode.

Click here to view an infographic on Gold…


Jim Sinclair’s Commentary

Any thought that QE can end soon or be reduced is total nonsense. The end of QE would be the end of the Western world’s economic power for 23 years to come.

Long Term Unemployment at Highest Level Since WWII
by Keith Koffler on January 15, 2013, 10:18 am

Long term unemployment under President Obama is at the highest level since at least the end of World War II, threatening to create a permanent underclass of workers who will find it difficult or impossible to obtain jobs in the future. What’s more, Obama’s insistence on repeatedly extending long term unemployment benefits may be fueling the unemployment problem.

According to data recently released by the St. Louis Federal Reserve, the average duration of unemployment is now at about 40 weeks, double the previous highest level of about 20 weeks that prevailed during the last three recessions.


A separate paper released by the Boston Federal Reserve paints a pernicious picture of the problem: Employers seem to be throwing out the resumes of the long-term unemployed and only hiring those who have been without a job for less than six months. Meanwhile, with the guarantee of benefits rolling in, the long term jobless might not be looking aggressively enough for work, the paper states.



NEWS FLASH!! Copper Wire

After having dug to a depth of 10 feet last year, British scientists found traces of copper wire dating back 200 years and came to the conclusion that their ancestors already had a telephone network more than 150 years ago.

Not to be outdone by the Brit’s, in the weeks that followed, an American archaeologist dug to a depth of 20 feet, and shortly thereafter, a story published in the New York Times: "American archaeologists, finding traces of 250-year-old copper wire, have concluded that their ancestors already had an advanced high-tech communications network 50 years earlier than the British".

One week later, a member of Newfoundland’s Dept. of Mines and Resources reported the following: "After digging as deep as 30 feet in Corner Brook, Newfoundland – Jack Lucknow Parsons , a self-taught archaeologist, reported that he found absolutely nothing. Jack has therefore concluded that 250 years ago, Canada had already gone wireless."

Just makes you darn proud to be Canadian, don’t it?

Jim Sinclair’s Commentary

This book was reviewed by the Christian Monitor emphasizing the point that it is not about Nazi Germany but rather about trends in the present time elsewhere. That is worth a read for the person in search of reality.

They Thought They Were Free: The Germans, 1933-45
by Milton Sanford Mayer (May 19, 1966)



Jim Sinclair’s Commentary

OMFIF founded in 2010 is a new kid on the scene in spite of its claims of global influence.

Regardless the words OMFIF emit are truth. What people need to understand is that no Bretton Woods redo or agreement of nations is required to heal the international balance sheet crisis of nations.

Like QE, there is no other tool available. QE pretends solvency on national levels. Gold can create solvency on national levels. No other tool can create solvency on a national level so therefore gold will do it all by itself by pricing in the cash market at the dollar level required for international solvency.

Should the price of gold rise in the cash marketplace to a level that balances the horrid national balance sheets of leading nations, gold has by itself totally remedied the monetary problem. Euroland knows this, but Bernanke is fighting it, even though he too knows this monetary truism.

It is a US power symbol, the dollar, and that is the only ego concept now standing in the way of the monetary problem natural market solution. The solution will come of its own power. what is natural cannot be altered permanently by manipulation. This is gold’s universal purpose that no one can prevent. Gold is a standard and will function as that standard of measure of all thing fiat.

Today’s article on Mineweb:

In his forward to the report, “Gold, the renminbi and the multi-currency reserve system,” Desai suggested, “If the spectre of collapse continues to haunt the main reserve assets, and on the expectation that the renminbi will take time to get into its stride, the world will rush to safe havens. Gold may be the only one with the requisite size, clout and—dare I say it—history to help ward off the strains that will beset the world monetary system.”

Link to full article…

Jim Sinclair’s Commentary

Here is some wisdom hidden in a joke. The call for a phony platinum coin was stupid, however, the market increase of the gold price for the major gold holding nations could balance their external debt, making a giant move towards balancing their national balance sheet. A move in price high enough could even do that. Now you know why Euroland and other central banks are buyers of gold. Therein is the wisdom hidden in a joke.

Here is another reason why the long war between the dollar and the euro will be resolved in favor of the euro. In that sense the Swiss franc tied to the euro at a 1.20 cross rate is bullish for the Swiss versus the dollar cross rate.







Jim Sinclair’s Commentary

The more things change the more they remain the same.

Can you name the Banksters in the car? Main Street is holding its hat.