In The News Today

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Sage Tukaram was once asked how can people keep this monkey-mind controlled from running after sensuous pleasures, the Sage advised, “Let the monkey mind run, you keep the body with you, do not let it go after the mind”. He encouraged, “Tell the mind, I shall not give you the body as your servant. Then the mind will desist and it can be defeated.
–SSB, May 17 1964.

 

Jim Sinclair’s Commentary

This should make everyone’s weekend.

Get out of the system, or pay big for the privilege of membership. Get out of the government sponsored retirement programs before the government takes your retirement.

God protect us from academics. Physical gold will be gobbled up on every reaction of fraudulent paper gold. Only physical gold offers privacy and permanency. Physical Gold is for Savings.

"Professors Lars Feld and Peter Bofinger said states in trouble must pay more for their own salvation, arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. “The rich must give up part of their wealth over the next ten years,” said Prof Bofinger. "

German ‘Wise Men’ push for wealth seizure to fund EMU bail-outs
Two top advisers to German Chancellor Angela Merkel have called for a tax on private wealth and property in eurozone debtor states to force the rich to fund rescue costs, marking a radical new departure for EMU crisis strategy.
By Ambrose Evans-Pritchard
7:55PM BST 14 Apr 2013

Professors Lars Feld and Peter Bofinger said states in trouble must pay more for their own salvation, arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. “The rich must give up part of their wealth over the next ten years,” said Prof Bofinger.

The two economist are members of Germany’s Council of Economic Experts or “Five Wise Men”, a body that advises the Chancellor on major issues. There is no formal plan to launch a wealth tax but the council is often used to fly kites for new policies.

Prof Bofinger told Spiegel Magazine that it was a mistake to target deposit holders in banks, the formula used in the EU-IMF Troika bail-out for Cyprus where those with savings above €100,000 at Laiki and Bank of Cyprus face huge losses. “The canny rich in southern Europe just shift their money to banks in Northern Europe to escape seizure,” he said.

Prof Feld said a new survey by the European Central Bank had revealed that people in the crisis countries are richer than the Germans themselves. “This shows that Germany has been right to take a tough line of euro rescue loans,” he said.

The ECB study found that the “median” wealth of is €267,000 in Cyprus, compared to just €51,000 in Germany where home ownership rate is just 44pc and large numbers of people have almost no assets.

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Jim Sinclair’s Commentary

More on this very important statistic. Every time the geniuses at the gold bank play their games they give more gold away to the East.

With brains like this running the Western financial system, who needs any enemies?

Sharp price fall triggers surge in China gold imports
Saturday, 27 April, 2013 [Updated: 05:44]

The mainland’s imports of gold from Hong Kong probably surged this month as mainlanders increased their purchases after prices fell to the lowest in more than 2-1/2 years.

Volumes for the benchmark spot contract on the Shanghai Gold Exchange exceeded 20 tonnes every day since April 16, when prices tumbled to the lowest since August 2010. That is more than four times the daily average last year, according to exchange data.

The volume reached a record 43.27 tonnes on Monday.

Gold plunged 14 per cent in two sessions to April 15 in London, the most since 1983, stoking a frenzy among coin and jewellery buyers from China to India and the United States.

Shipments to the mainland reached a record 114.405 tonnes in December, according to data from Hong Kong’s Census and Statistics Department, which may release this month’s data in June.

"Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level," said Qu Mingyu, a trader at Bank of China. "Whether they will reach a record remains to be seen.

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Jim Sinclair’s Commentary

From Richard Russell, April 25th.

Richard’s Remarks:

The US is now borrowing money to pay for the interest on our national debt. The US now borrows roughly 46 cents for every dollar that it spends. We’ve finally come to the point where our foreign creditors no longer want to lend money to the US to cover our outrageous debts. What’s next? The Federal Reserve is now buying the US’s bonds. How does the Fed pay for the bonds? The Federal Reserve pays for the bonds with money that it CREATES out of thin air. This process is systematically shrinking the purchasing power of the "dollar." And worse, the world is fully aware of it. Almost every nation is now moving to protect itself against the shrinking purchasing power of the dollars in their reserves. So far, Americans seem totally unaware of what is happening to their dollars. The government is lying about inflation in our lives. Yet we see inflation in our energy and gas bills, in the price we pay for food at the supermarkets, in the cost of imported goods, in our medical bills, in college tuition, and in almost everything else.

The real danger in all this is that the move away from dollars is accelerating. At some point in the weeks or months ahead, the "escape from the dollar" will break out into the open. At that time interest rates will suddenly and automatically rise, as the dollar is forced to defend itself (higher rates render the dollar more attractive to our creditors). When rates start to rise, the bond market will begin to crumble. The exact timing of all this is impossible to predict. But that doesn’t matter — the implications of a bond crash are so ominous that they transcend precise timing. The time to prepare for safety is now.

Ultimate safety lies in actual gold in your possession. If the US government really cared about its people, it would now (like China) be urging Americans to accumulate gold for their protection. Instead, Uncle Sam insists that gold is not money, and worse — does its best to hold the price of gold down.

The physical gold and silver market continues with high demand, expanding premiums and limited

Jim Sinclair’s Commentary

In case you missed it. Seems only right to me.

This organization is made of and represents the manufacturers and distributors for OTC derivatives.

ISDA Caught Up in EU Probe of Credit-Default Swap Data
By Ben Moshinsky – Mar 26, 2013 9:38 AM ET

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.

European Union Competition Commissioner Joaquin Almunia said the EU will intervene when necessary and that the industry “needs a genuine change of culture.” Photographer: Andrew Harrer/Bloomberg

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.

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Jim Sinclair’s Commentary

Now here is a very telling statistic

Sharp price fall triggers surge in China gold imports

43.27 tonnes on Monday. Gold plunged 14 per cent in two sessions to April 15 in London, the most since 1983, stoking a frenzy among coin and jewellery buyers from China to India and the United States. Shipments to the mainland reached a record 114.405… Full Article at SCMP

Jim Sinclair’s Commentary

The truth about physical gold:

If you shut up truth and bury it under the ground, it will but grow, and gather to itself such explosive power that the day it bursts through it will knock down everything that stands in its way.
–Émile Zola

Jim Sinclair’s Commentary

There will be no banksters left in London. They will all have to move to Grand Cayman.

Plan to Jail Bankers Who Behave Recklessly Eyed by UK Lawmaker
Published: Friday, 26 Apr 2013 | 1:29 AM ET

Bankers who behave recklessly would be jailed under a new law being considered by MPs and peers on the banking commission, whose final report is due next month.

Several members of the commission, which was set up by George Osborne after the scandal over the London Interbank Offered Rate, argue for a new law which would hold bankers personally liable for catastrophic losses.

One member told the Financial Times: "Banks benefit from a public subsidy, in that they know they will be bailed out if they fail. I think we want to see a sense of personal responsibility to match that."

Andrew Tyrie, the Conservative MP chairing the commission, is close to completing a draft report with the final version due at the end of May.

Mr Osborne set up the commission to look into all aspects of bankers’ behaviour, under heavy pressure from Labour, and will find it difficult to reject its recommendations.

In an interim report into the failure of HBOS, published three weeks ago, the commission signalled its focus on holding bankers personally responsible for their misdeeds.

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Jim Sinclair’s Commentary

Airing out the rugs is taken full advantage of by Mr. Beef and Yankee Doodle. When the temp gets to 70 f move over guys, here he comes.

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Jim Sinclair’s Commentary

Worth considering.

I do not think the equities markets will make a permanent high as long as QE continues and expands. A significant reaction is due.

Charles Nenner Provides His Key Support Levels for the Stock Market
APRIL 18, 2013

Technical analysis guru Charles Nenner, founder of the Charles Nenner Research Center, provided his latest outlook to CNBC’s Maria Caruso Cabrera and Bill Griffeth yesterday.

Nenner reminded viewers of his call to “go totally long the market” in early 2009. He said he recently exited the market about six weeks ago when the S&P 500 hit 1,510 and he was looking for a topping pattern until the end of April, and added, “it would be a little early here for it to sell off.”

Griffeth pulled up Nenner’s key numbers for a breakdown which included the Dow falling below 14,545, S&P 500 futures below 1,544, and NASDAQ 100 futures below 2,751. Griffeth then asked Nenner how he arrived at these numbers. Nenner explained he developed a system in which numbers don’t move at random; “something happens on a certain day, certain week, and at a certain level,” he stated.

The CNBC hosts asked Nenner why he focused on futures versus cash/spot numbers to which he provided an obtuse answer, but clarified, “the Dow is a cash number.”

Cabrera asked Nenner how long it would be before we know the answer to where the market is headed. Nenner said don’t expect a sell-off until May, but the market may give the highs a new try. He added we’re in very dangerous territory and people don’t realize what could happen.

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Jim Sinclair’s Commentary

Here is evidence of the resolve to accept pain in the name of austerity in the USA.

QE to infinity.

Senate Approves Bill to Address Air Traffic Delays

Driven by bipartisan concerns over mounting airport delays, the Senate reached agreement Thursday night to give the secretary of transportation enough flexibility to bring the nation’s air traffic control system back up to full strength.

The legislation, which passed unanimously before the Senate left town for the next week, would allow as much as $253 million to be moved from other parts of the Transportation Department to the Federal Aviation Administration. Advocates said that should be enough to stop further furloughs and keep the air traffic control system operating at a normal pace through Sept. 30, the end of the current fiscal year.

But the impact of $85 billion in across-the-board spending cuts, which went into effect March 1, continues to ripple through other parts of the government, with a broader intervention nowhere in sight.

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Jim Sinclair’s Commentary

Not that we expected anything different, but QE is full throttle ahead.

"“It’s going to be full throttle until the end of this year,” said Gagnon, referring to the purchases that have pushed the Fed’s balance sheet to a record $3.3 trillion. The FOMC plans to meet April 30-May 1. "

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Jim Sinclair’s Commentary

The Nose knows! The depression in gold is over, so get over it!

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The Hunger for (Cheaper) Gold Continues Unabated
Apr 26

The U.S. Comex gold futures surged 4.76 percent to $1,462.0 on Thursday, about 6.6 percent below the closing level of 11 April before the rout occurred. During Asian Friday morning, the gold futures reached as high as 1,484.80. Gold prices have recovered roughly half of what they lost. The Dollar Index barely budged this week and ended at 82.744 on Thursday. The S&P 500 index, the Euro Stoxx 50 index and the CRB Commodity Index rebounded 1.92 percent, 5.02 percent and 1.39 percent respectively this week.

Lining up to Buy Gold
After gold has fallen into a bear market on 12 April, physical demand has soared. According to Bloomberg, the U.S. Mint sold 196,500 ounces of gold coins this month through 24 April, more than three times the volume in March. Demand for gold is un-abating at both the U.S. Mint and the U.K.’s Royal Mint. The physical gold sold to India exceeded its highest record by 20 percent, reported by Standard Chartered. The gold premiums in Hong Kong and Singapore reached $3 an ounce, an eighteenth-month high. The World Gold Council in the Far East remarked that the Asian’s hunger for the cheaper gold has exceeded the expectation of global investors. In the past ten days in the Shanghai Gold Exchange, the daily volume of the benchmark contract was more than four times of the 2012’s daily average. Before the latest rout in gold, Russia’s central bank boosted gold by 4.7 metric tons in March while Kazakhstan bought 1.2 tons. The emerging countries’ central banks will likely take advantage of the gold price plunge to continue to add to gold, which is seen as an alternative currency and an inflation hedge. Bloomberg reported that hedge fund managers turned into buyers and net added gold for two consecutive weeks. As the global economic data have turned softer recently, central banks such as the ECB are likely to continue to ease rather than terminate the ease prematurely.

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Jim Sinclair’s Commentary

Privately, just between us guys, what is the real direction of the price for physical gold?

Just give me a sign.

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