In The News Today

Posted at 6:02 PM (CST) by & filed under In The News.

Dear CIGAs,

Remember yesterday’s topic of discussion in the community that Russia was going to freeze German money? That was another example of the totally inaccurate reporting in the gold community.

So far there has not been one correct rendition of what took place in Cyprus. Do you know that one major bank was open for the entire period of Cyprus Bank closures for major clients?

Do you really believe in the months leading up to this that the Russian depositors just sat there calmly waiting for largess from the IMF and did not withdraw the balance of their accounts as the account stood?

It gets harder every day to do JSMineset when even the gold community is full of gun slingers that I believe will transmit themselves to whatever is hot in town for revenue. Many articles are even published under made up names.


Jim Sinclair’s Commentary

Interesting chart. Looks like someone has taken Trader Dan’s advice.



Jim Sinclair’s Commentary

From small cities large problems gain exposure.

California watches as small city goes after Calpers
By Tim Reid

LOS ANGELES (Reuters) – Officials of a tiny California city say they believe overbilling by state pension system Calpers has pushed up municipal debt to unsustainable levels, and they have hired a bankruptcy attorney to explore ways to lower payments to the system.

Municipal bankruptcy experts said other cash-strapped California cities and towns will be watching Pacific Grove, a coastal city of 15,000 south of San Francisco, to see how it resolves its issues with the California Public Employees’ Pension Fund (Calpers), the largest U.S. pension system.

Calpers, which manages $254 billion in assets, said it will provide the additional information Pacific Grove has asked for by April 15. But the pension fund also said it has calculated city pension payments carefully and provided Pacific Grove with detailed calculations and accounting methods in yearly reports.

"We can’t afford to keep paying Calpers at the current rates – and we can’t afford to get out," said Bill Kampe, Pacific Grove’s mayor. "Fundamentally, we want to pay less to Calpers."

The Pacific Grove city council last week voted to "fully explore" ways in which it believes Calpers has "artificially inflated the City’s liabilities." It hired an actuary as well as Karol Denniston, a San Francisco lawyer at Schiff Hardin who helped draft California’s bankruptcy process law.



Jim Sinclair’s Commentary

Do you really believe that this man has spearheaded and is responsible for confiscating 40% of KGB money? The events in Cyprus are the most misreported both in MSM and on the Internet since the reports of the Kennedy assassination.

Many sites within the community simply made up what they wrote about in the rush to be #1.



Jim Sinclair’s Commentary

Every trade here is a trade not occurring via the US dollar.

BRICS members China, Brazil sign deal to trade in own currencies
DURBAN, South Africa | Tue Mar 26, 2013 4:42pm IST

(Reuters) – BRICS members China and Brazil agreed on Tuesday to use their own currencies in bilateral trade in a deal that will cover the equivalent of up to $30 billion in trade exchanges per year, for three years.

The accord was signed by the Chinese and Brazilian central bank governors and finance ministers in Durban, hours before the start of a summit in South Africa of the BRICS group of emerging powers.


Jim Sinclair’s Commentary

This does not take into account loans from Russia to Russian Cypriot banks.

Overseas lending, bank exposure to Cyprus around $100 billion: BIS, Moody’s
LONDON | Mon Mar 25, 2013 1:50pm EDT

(Reuters) – Overseas lenders, excluding those in Russia, had $59.2 billion of outstanding loans to Cyprus at the end of September, according to Bank for International Settlements (BIS) data.

BIS statistics, the only ones to chart cross-border lending around the world, do not include loans from Russia. Ratings agency Moody’s estimates Russian bank loans to Cyprus-based companies of Russian origin were $30-40 billion.


Jim Sinclair’s Commentary

The OTC derivative got its birth from total fraud, so it would be very hard for the manufacturers of fraud to manufacture ethical quality instruments.

ISDA Caught Up in EU Probe of Credit-Default Swap Data
By Ben Moshinsky – Mar 26, 2013 8:51 AM GMT-0300

The International Swaps & Derivatives Association, a financial industry derivatives group, is being probed as part of a European Union antitrust investigation into how data on credit derivatives is shared.

Regulators found “indications that ISDA may have been involved in a coordinated effort of investment banks to delay or prevent exchanges from entering the credit derivatives business,” the European Commission said in a statement today. The EU started a probe in April 2011 into whether 16 lenders, including Citigroup Inc. (C) and Deutsche Bank AG (DBK), colluded by giving pricing information to data provider Markit Group Ltd.

The commission “is examining whether a number of investment banks may have used Markit, the leading provider of financial information in the CDS market, to foreclose the development of certain CDS trading platforms,” the regulator said. “This could have been achieved through collusion or an abuse of a possible collective dominance.”

Global regulators have sought to toughen oversight of the credit-default swap market, arguing the trades helped fuel the financial crisis. The EU’s probes add to separate antitrust investigations into whether banks colluded to manipulate benchmark lending rates, including the London interbank offered rate. The U.S. Justice Department is also probing the credit derivatives clearing, trading and information services industries.


Jim Sinclair’s Commentary

This plan is not new, but has been in the works for more than two years.

It is apparent that the recent opening demands by the IMF of Cyprus has given this initiative new life.

BRICS Nations Plan New Bank to Bypass World Bank, IMF
By Mike Cohen & Ilya Arkhipov – Mar 26, 2013 3:31 AM ET

The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bank and International Monetary Fund.

The leaders of the so-called BRICS nations — Brazil, Russia, India, China and South Africa — are set to approve the establishment of a new development bank during an annual summit that began today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises.

“The deepest rationale for the BRICS is almost certainly the creation of new Bretton Woods-type institutions that are inclined toward the developing world,” Martyn Davies, chief executive officer of Johannesburg-based Frontier Advisory, which provides research on emerging markets, said in a phone interview. “There’s a shift in power from the traditional to the emerging world. There is a lot of geo-political concern about this shift in the western world.”

The BRICS nations, which have combined foreign-currency reserves of $4.4 trillion and account for 43 percent of the world’s population, are seeking greater sway in global finance to match their rising economic power. They have called for an overhaul of management of the World Bank and IMF, which were created in Bretton Woods, New Hampshire, in 1944, and oppose the practice of their respective presidents being drawn from the U.S. and Europe.