Jim’s Mailbox

Posted at 9:22 AM (CST) by & filed under Jim's Mailbox.

God Morning Jim,

You say to get out of debt but I’m wondering if loading up on debt right now might not be a bad idea? Interest rates are at 400 year lows and I work for a pulp mill that sells our pulp to China. I don’t think my income will drop. Cars are 0% financing, mortgages around 3% and so on. Servicing of the debt will be possible even if my other costs go up due to inflation because I would keep my debt below 1/3 of my take home pay. Why not let the lenders of my house, car, boat, etc. eat the costs of inflation and raising interest rates in the future?

Thanking you in advance for your answer and for helping the gold community.

Kind Regards,
CIGA Robert B


Theoretically correct, but debt places you in danger during a period lacking absolute definition.

That play is based on the assumption that contract law does not change in a monetary crisis.


Dear CIGAs,

Han’s problem with what he thought was allocated gold:

You will recall if you read JSMineset regularly that CIGA Hans was told by a major well known Swiss Bank that he could not withdraw allocated gold in excess of SwFr 200,000. The reasons he was given went from laundering terrorist money to regulators edict. Clearly CIGA Hans was only a significant investor legally taking advantage of what is lawfully permitted in an ethical manner. He sought my guidance.

I called a man who I trust in Switzerland. This man who I trust acts as an ombudsmen towards people desiring or in storage. He does not personally offer storage. As a favor to me he undertook to speak with the CIGA and within one week unlocked the gold that was due the CIGA.

You know that I do not share any financial benefit directly or tangentially from any resources I reveal to you. JSMineset is for me is a major drain of capital for the past more than 10 years.

Since I have had many emails either concerned, or clearly being run around by storage companies, I am posting the identity of the man who broke a major log jam for a reader in one week.

You all have read his work on the gold market. He is highly respected within the community and is made of the right stuff.

This individual is Egon von Greyerz – evg@mamag.org.

Jim Sinclair’s Commentary

Is your stored Gold and Silver really there?

This is just an example of the many emails that I receive. It is logically clear Julie does not own allocated, or at least I hope she does not. How would you react under these circumstances?

All those concerned should request some of what they have stored to see if it arrives promptly, or if they get excuses. If you own your bullion as allocated in storage and there is any delay, I suggest you have a problem.

Hi Jim,

I’m seeking clarity over the delivery issues you mentioned. I’m waiting for delivery of silver 100 oz bars from xyz which they are saying they can’t give a time for because they have to make more.

Does this sound like a problem to you?

CIGA Julie


Dear Jim,

We have all been conned, hoodwinked, bamboozled into thinking that "money in the bank" is a good thing. It is not. Remember Cyprus? Money in the bank potentially makes YOU a potential loser.

The ‘guidance’ of the BIS, BoE, and Fed regarding the Cyprus situation was purposely vague, misleading, and overly technical because to plainly cite the legal situation would send everyone running to their bank with their hair on fire to immediately withdraw their funds. In summary, this is exactly how "money in the bank" works:

– When you deposit YOUR money in the Bank, you transfer ownership of that money to the Bank. It becomes THE BANK’S MONEY and as a depositor you instantly become an unsecured creditor.

– You have a ‘claim’ on an equal sum of money and can ask for it back.

– If the Bank won’t return an equal sum to you, it can be sued under tort law, so long as the Bank is solvent… providing you ask for your money back.

– If the Bank is broke then as an unsecured creditor you wind up with pennies on the dollar or even zero since secured creditors of the Bank get paid first.

This is the British LAW. For reference, it was established under UK law in 1848 by ‘Foley vs. Hill.’ Once a deposit has been made into a Bank, the Bank becomes a debtor and the depositor a creditor. You have pointed out similar precedents in US law.

The Bank has NO trusteeship or fiduciary duty to depositors, and cannot be prosecuted under criminal law (a) Eric Holder was RIGHT on this point, and (b) not surprised that he did not cite the exact legal reason in his statement – Banks cannot be held liable to depositors for gambling (think ‘OTC derivatives’ the same known as swaps) or misusing (think risky loans, bad investments, sovereign bonds like Greece, or huge bonuses to themselves).

Almost universally, depositors think that money in the Bank is THEIRS. It is NOT. Almost no depositor thinks of themselves as a creditor, much less an unsecured creditor. This is the Bankster game in plain sight. It’s almost as funny as the saying ‘sound as a dollar.’

In closing, with a respectful hat tip to Mr. Jim Sinclair, it’s time to start getting out of the system.

As Bank depositors learned in Cyprus, that money IN the Bank isn’t really there for them when things go South. How many of them do you think now wish they had their assets outside the system before it blew itself up?



Dear CIGA Rico,

In Cyprus the money was never in the bank. It blew up a long time ago. The statements depositors received were cartoons that could only function as long as the Ponzi plan worked. The losses ripped through the bank’s capital a long time ago, and hammered the banks cash position which is the depositor’s accounts.

The money was already far gone well before the supposed blockage and confiscation

of over 80% of the deposits of large accounts over 100,000 EU.

There was a minor bail out in Cyprus but not of major depositor’s money.

Does this situation exist elsewhere or everywhere?