Jim’s Mailbox

Posted at 11:21 AM (CST) by & filed under Jim's Mailbox.

Jim Sinclair’s Commentary

Beware. Governments in dire need of tax money are as out of control as central banks.

It is time to be out of the financial, and information system to protect your legal rights.

Hi Jim,

I sent you a link a while back regarding the "Advantage Tax" the Canadian government slipped in with the TFSA legislation 4 years ago. They recently adopted the same "Advantage Tax" confiscation penalties into RRSPs, Rifs and LIFs.

This penalty tax circumvents the court system, imposing penalties equivalent to the maximum value attained within an account. This essentially taxes "Unrealized Capital gains" value of shares that may have become defunct… therefore "losses" etc.

This is not idle talk my friend. I have been targeted for a $550,000 penalty tax on an account that is now worth less than $150,000

The Canadian government has already implemented a confiscation of assets within this legislation for minor discretions. In my case I swapped shares from my RRSP to my TFSA when swaps were encouraged by the finance minister in early 2009. In October 2009 the government banned swaps and added swaps to the prohibited investment category. Now they are retroactively applying the legislation 4 years later to something that was legal and encouraged at the time.

Here’s the link again: http://www.thor.ca/tax-alerts/punitive-tfsa-audits/



Hi Jim,

Canada is just following orders, that IS Canada…

Lately you have set it all up for people to understand. Well done; you have navigated the high waves and set a course we can follow.

I think MSM is THE enemy. "Confidence" is manufactured here with lies and more lies, with contradictory statements swirling into sight within minutes of its opposite. Then the feel good cosmetic "ideas" invade our homes and minds. So it goes.

Today I was laughing so much at what they were saying on Bloomberg, it was like watching Steve Martin years ago. I was literally howling, as never before.

Maybe I am losing it a tad, but I enjoyed the howl.

Jim, it is difficult to accept this media and culture. It is the biggest drag on consciousness. All media is owned by the few (big 5).

Here in Thailand the two main newspapers may be written in Washington; they are just useless. They even have pages about NFL games as if Thais would watch that sport. But Thai gets the US propaganda, and actually have little or no defense against it.

CIGA Blair

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Disability Fund to Be Depleted by 2016

With more Americans receiving disability rather than working jobs that fail to achieve subsistence level standard of living, the depletion of the disability fund by 2016 is a major concern. Do we raise taxes, reduces payouts and incur the social wrath of broken promises, print money and hope no one notices, or does the grand experiment of infinite expenditures (demand) feed by finite receipts (supply), more commonly known as socialism, simply implodes before any real discussion of trouble. History favors implosion, but not without major flight of capital first.

Headline: Disability Fund to Be Depleted by 2016

Even as more people in the U.S. rely on disability benefits, the program that pays them is running into a problem: there isn’t enough money coming in to cover the amount that’s going out.

The disability insurance trust fund has been running at a deficit since 2009. So far, it has been able to make payments drawing down on surpluses built during the 1990s and early 2000s. But unless revenue increases or payouts drop that extra cash will eventually run out. In fact, the most recent report of the fund’s board of trustees expects it to run dry as soon as 2016.




I thought may you might like to pass this chart on to your friends. It is compiled from The Fed H.4.1 report that comes out every Thursday. I finished the specialist volume spread spreadsheet. There was a huge change in the specialist to public sales ratio in the last 6 weeks. They have 1/80th the short sales of the public short sales. Normally it can vary from 1/15th to 1/20th. I don’t know if it is a change in base line from going all computer or if they are gonna pop the market up from these levels. It is hard to believe that that they would be more bullish now than in the last couple of years. However, if you compare the SPY to the feds balance sheet growth, 1750 – 1800 on the S&P 500 would not be completely irrational. Looks like $2000 gold should be a realistic target for sometime this year.

I think some of the members could get some emotional strength from just seeing the chart. It helps me to remain strong in my position. Later Jim, and again thanks for all the help you give us.




Some of us might not be old enough to remember this and some of us may have forgotten about it. At the time it was laughed off as impossible. We just turned over and hit the snooze button… again.

Seems like perhaps he knew what he was talking about!

Do you remember when he appeared at the UN and banged his shoe on the table? This is his entire quote at that time.


Your children’s children will live under communism. You Americans are so gullible. No, you won’t accept communism outright; but we’ll keep feeding you small doses of socialism until you will finally wake up and find that you already have Communism. We won’t have to fight you; we’ll so weaken your economy until you fall like this overripe fruit into our hands.
–Nikita Kruschev, 1959

Jim Sinclair’s Commentary

A note from my former partner and dear friend, Yra Harris.

***Notes From Underground readers know that since the IMF mishandling of the Cypriot Bank Crisis I have referred to Christine Lagarde as the Joker (Dylan’s All Along the Watchtower). Well, the joker was at it again. In today’s Financial Times and other various news sources, it was reported that Director Lagarde was praising the recent moves by the Bank of Japan and the Ministry of Finance. The FT quotes Madame Lagarde: “Unconventional measures had helped global growth and the ‘reforms just announced by the BOJ are another welcome step in this direction.’” This is the same IMF and its G-7 conclave that has opposed Japanese efforts to weaken its currency and warned it against taken the drastic step of buying foreign bonds. Although, back in October 2012, this BLOG called readers’ attention to a change in the IMF mindset when the Japanese hinted at buying at bonds of the crisis-impacted European peripheries. (See blog from October 14, 2012). The only time the IMF has condoned Japanese currency action when the MOF/BOJ were attempting to halt severe YEN appreciation in times of the RISK-OFF scenario.

Lagarde putting voice to Japan’s move to ramp up the GLOBAL CURRENCY WARS is exactly what the IMF was created to prevent. In a Reuters piece February 12, “G7 Fires Warning Shot over Currencies, Markets Confused,” the article says: “The G7 declared that fiscal and monetary policies would not be directed at devaluing currencies, a statement meant to soothe nerves that Tokyo was aiming to guide the yen lower with its aggressive expansion of monetary policy.” When a country’s citizens own more than 90% of its bonds and the central bank is buying bonds to drive rates lower, the sellers are domestic-based and thus be forced to search out yield elsewhere–currency markets are the target by default. In the realm of global macro finance, TRUTH IS A MOVING TARGET. At the game of international financial poker, THE JOKER IS WILD.

Dear Jim,

Here is a video of an impressive electronic dragonfly.


Seems our world could soon turn into a Terminator-style robot world.

CIGA Matthias