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Jim Sinclair’s Commentary

The Confidence Killer is here.

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Jim Sinclair’s Commentary

Relaxing after the Q&A session.

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Jim Sinclair’s Commentary

LeGarde legacy:

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Jim Sinclair’s Commentary

It may not be but it sure sells well.

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Jim Sinclair’s Commentary

Nick and Goeff talk about Cyprus with Geoff in Cyprus.

The take away for CIGAs is clear. I have told you repeatedly that you must exit the system and be your own central bank.

That means gold in your possession and control.
That means equities either as direct registration or certificated.
That means minimum deposits.
That means closing your retirement accounts regardless of the tax hit.
That means not planning your retirement considering either social security or retirement account.
That means forget retiring.

How many of you have given this only lip service and partial attention? Geoff got out of the Cyprus trap, but I wager you he went directly out of the frying pan into the fire by keeping his funds in the system somewhere else.

In time Cyprus will go down in history as did the murder of Arch Duke Ferdinand. Ms. LeGarde does not know it, but she is going to be a modern Marie Antoinette. She said and is repeating herself today, "Cypriots and you backwater of Europe Ruskies, Eat Cake."

Nick: Did you take any action prior to the announcement to protect yourself?

Geoff: I had moved most of our funds out of the country and out of euros about a year ago (most expats I know did the same). I retained only enough for basic living costs in banks here. I also keep a small amount of cash on hand for an emergency such as this. I can use cards on offshore accounts if more is needed. As soon as I heard the news on Friday evening, I went down and took out most of the cash available by card (to the daily limit.) I went again on Sunday morning and emptied our card account. That’s all I had access to, the other accounts are locked.

Cyprus scrambles to avert meltdown, EU threatens cutoff
By Michele Kambas and Matt Robinson

NICOSIA (Reuters) – Cyprus considered nationalizing pension funds and ordered banks to stay shut till next week to avert financial chaos after it rejected the terms of a European Union bailout and turned to Russia for aid.

Crisis talks among the political leadership in Nicosia are set to resume on Thursday after late-night meetings to discuss a "Plan B" broke up on Wednesday without result.

EU officials voiced frustration but little sympathy for an ambitious but now bust banking system that extended itself well beyond the island; Russia, whose citizens have billions to lose in those Cypriot banks, called the EU a "bull in a china shop".

President Nicos Anastasiades, just a month in office and wrestling with his country’s worst crisis since the Turkish invasion of 1974 that divided Greek- and Turkish-speaking Cypriots, is due to meet party leaders at 9:30 a.m. (2.30 a.m. EST).

The deputy leader of his Democratic Rally warned time was running out: "We don’t have days or weeks, we have only hours to save our country," Averos Neophytou told reporters.

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Jim Sinclair’s Commentary

Here is how to make up the tax hit for biting the bullet and acting.

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Jim Sinclair’s Commentary

An open letter to the IMF from Albert.

Only two things are infinite, the universe and human stupidity, and I’m not sure about the former.
–Albert Einstein

"It was unclear whether European partners would accept the idea of turning to pension fund assets, which could leave the government exposed to further debts."

Cyprus to keep banks shut into next week as it seeks deal to avert disaster
Ministers continue negotiations with EU, IMF and Russia as suspicions grow that Kremlin is pressing for stakes in gas fields
Angelique Chrisafis in Nicosia and Miriam Elder in Moscow
The Guardian, Wednesday 20 March 2013 23.38 GMT

Cyprus ordered its banks to remain closed until next week as the cabinet held emergency talks on Wednesday in an effort to strike a deal with the EU or Russia to avert financial meltdown and stave off bankruptcy.

After the country’s parliament rejected a plan to provide €5.8bn (£5bn) by seizing a portion of bank deposits from anyone with a bank account, Cyprus is struggling to come up with a plan that will let it access an EU bailout to stop its banks failing.

The country’s eurozone partners and the International Monetary Fund (IMF) are ready to provide €10bn in an emergency bailout if Cyprus comes up with an extra €7bn itself. Most of the bailout money is needed to shore up the country’s oversized banking sector, with the rest for government finances.

No clear "plan B" had emerged after meetings between politicians and representatives of European partners and the IMF. The Cypriot cabinet was said to be discussing ideas including the nationalisation of pension funds of semi-government corporations, which hold €2bn-€3bn, and another form of levy on deposits. The talks were due to resume.

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Russia May Review Share of Euro in Reserves, Medvedev Says
By Vladimir Kuznetsov on March 21, 2013

Cyprus’s financial crisis may force Russia to review the share of euros in its international currency reserves, the world’s fourth-largest stockpile, according to Prime Minister Dmitry Medvedev.

An unprecedented levy on deposits in Cyprus banks that was backed by European finance officials as a condition for the country to receive a bailout, was “not just unpredictable, it’s evidence of some inadequacy,” Medvedev said, according to a transcript of his interview with Interfax and foreign media on the government’s website.

“We have 41 percent or 42 percent of our reserves in euros,” Medvedev said. “It’s big money, and we, like any country, value predictability.”

Russia’s foreign currency and gold reserves stood at $522.1 billion last week. The dollar accounts for 46 percent of the stockpile, while 40.5 percent is held in euros, First Deputy Central Bank Chairman Alexei Ulyukayev was cited as saying by RIA Novosti Jan. 24.

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IMF head Lagarde’s flat searched in Bernard Tapie probe
20 March 2013 Last updated at 11:42 ET

French police have searched the Paris apartment of IMF chief Christine Lagarde, as they investigate her role in awarding financial compensation to businessman Bernard Tapie in 2008.

As finance minister, she referred his long-running dispute with bank Credit Lyonnais to an arbitration panel, which awarded him 400m euros (£340m) damages.

Mr Tapie was a supporter of ex-President Nicolas Sarkozy.

Critics say she abused her authority but Ms Lagarde denies any wrongdoing.

"This search will help uncover the truth, which will contribute to exonerating my client from any criminal wrongdoing," Ms Lagarde’s lawyer, Yves Repiquet, told the Reuters news agency.

The BBC’s Christian Fraser in Paris says investigators suspect Mr Tapie was granted a deal in return for his support of President Sarkozy in the 2007 election.

There is speculation in France that Ms Lagarde could yet be placed under formal investigation in this case, he adds.

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Exclusive: Euro zone call notes reveal extent of alarm over Cyprus
BRUSSELS | Thu Mar 21, 2013 8:15am EDT

(Reuters) – Euro zone finance officials acknowledged being "in a mess" over Cyprus during a conference call on Wednesday and discussed imposing capital controls to insulate the region from a possible collapse of the Cypriot economy.

In detailed notes of the call seen by Reuters, one official described emotions as running "very high", making it difficult to come up with rational solutions, and referred to "open talk in regards of (Cyprus) leaving the euro zone".

The call was among members of the Eurogroup Working Group, which consists of deputy finance ministers or senior treasury officials from the 17 euro zone countries as well as representatives from the European Central Bank and the European Commission. The group is chaired by Austria’s Thomas Wieser.

Cyprus decided not to take part in the call, a decision that several participants described as troubling and reflecting the wider confusion surrounding the island’s predicament.

"The (Cypriot) parliament is obviously too emotional and will not decide on anything, if Cyprus does not even feel that they can attend the call it is a big problem for us," the French representative said, according to the notes seen by Reuters.

"We have never seen this."

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Eagle Sales Soar Even as Metal Prices Fall
By Debbie Bradley, Numismatic News
March 18, 2013

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Sales of 1-ounce silver and gold American Eagle coins are soaring as market prices for the precious metals drop.

In fact, February sales of gold Eagles from the U.S. Mint were up 240 percent year over year, with sales of silver Eagles up 126 percent from February 2012 to 2013. The total number of troy ounces of gold sold during the two months in the form of Eagles was 230,500. For silver, the total was 10,866,500.

“More buyers are turning to physical gold and silver because of concerns over the U.S. debt and the crisis this huge debt level may bring to the U.S. economy over the next several years,” said Michael Haynes, CEO of American Precious Metals Exchange (APMEX).

Gold sold for about $1,750 an ounce a year ago, while today it hovers around $1,575. Silver dropped from around $34 an ounce in February 2012 to around $29 a year later.

“January and February for us were record type months,” Haynes said. “Our volume is extremely good; the physical markets are alive and well.”

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