In The News Today

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Jim Sinclair’s Commentary

Buddy is the best buddy.


Jim Sinclair’s Commentary

On the water with the grand kids both driving and hanging on.



Jim Sinclair’s Commentary

The latest from John Williams’

– Central Banks Dumping U.S. Treasuries at Fastest Pace Since 2011 Budget Crisis
– Market Turmoil Reflects Shifting Sentiments and Systemic Distortions
– Underlying Fundamentals for Gold and Silver Remain Extremely Strong
– Gold Remains the Most-Solid Hedge Against Looming Dollar and Inflation Crises

"No. 537: Gold Price and Market Instabilities "

Bankster Bankruptcy Bail-Ins Are Retirement Accounts Next?
Jun 30, 2013 – 03:54 AM GMT
By: Andy_Sutton

One of the biggest concerns of savvy investors since the ongoing crisis began in 2008 has been the safety and longevity of the various types of retirement accounts and systems. Throwing gasoline on the flames have been the decisions rendered by courts of ‘law’ regarding the treatment of customer money in the case of the bankruptcy of several brokerage firms, most notably, MFGlobal. The susceptibility of bank deposits has already been firmly established in prior issues of this column. To our alarm and dismay it appears, at least on the surface, as though few are doing anything to prepare for such an eventuality.


Jim Sinclair’s Commentary

Confidence of the USA’s allies is confidence in the USA dollar.

New NSA leaks show how US is bugging its European allies
Ewen MacAskill in Rio de Janeiro and Julian Borger
The Guardian, Sunday 30 June 2013 21.28 BST

US intelligence services are spying on the European Union mission in New York and its embassy in Washington, according to the latest top secret US National Security Agency documents leaked by the whistleblower Edward Snowden.

One document lists 38 embassies and missions, describing them as "targets". It details an extraordinary range of spying methods used against each target, from bugs implanted in electronic communications gear to taps into cables to the collection of transmissions with specialised antennae.

Along with traditional ideological adversaries and sensitive Middle Eastern countries, the list of targets includes the EU missions and the French, Italian and Greek embassies, as well as a number of other American allies, including Japan, Mexico, South Korea, India and Turkey. The list in the September 2010 document does not mention the UK, Germany or other western European states.

One of the bugging methods mentioned is codenamed Dropmire, which, according to a 2007 document, is "implanted on the Cryptofax at the EU embassy, DC" – an apparent reference to a bug placed in a commercially available encrypted fax machine used at the mission. The NSA documents note the machine is used to send cables back to foreign affairs ministries in European capitals.

The documents suggest the aim of the bugging exercise against the EU embassy in central Washington is to gather inside knowledge of policy disagreements on global issues and other rifts between member states.


Jim Sinclair’s Commentary

Confidence in the USA is confidence in its management which results in confidence in the US dollar.

This is unwinding.

Berlin accuses Washington of cold war tactics over snooping
Sunday 30 June 2013 16.55 EDT

Transatlantic relations plunged at the weekend as Berlin, Brussels and Paris all demanded that Washington account promptly and fully for new disclosures on the scale of the US National Security Agency’s spying on its European allies.

As further details emerged of the huge reach of US electronic snooping on Europe, Berlin accused Washington of treating it like the Soviet Union, "like a cold war enemy".

The European commission called on the US to clarify allegations that the NSA, operating from Nato headquarters a few miles away in Brussels, had infiltrated secure telephone and computer networks at the venue for EU summits in the Belgian capital. The fresh revelations in the Guardian and allegations in the German publication Der Spiegel triggered outrage in Germany and in the European parliament and threatened to overshadow negotiations on an ambitious transatlantic free-trade pact worth hundreds of billions due to open next week.

The reports of NSA snooping on Europe – and on Germany in particular – went well beyond previous revelations of electronic spying said to be focused on identifying suspected terrorists, extremists and organised criminals.

Der Spiegel reported that it had seen documents and slides from the NSA whistleblower Edward Snowden indicating that US agencies bugged the offices of the EU in Washington and at the UN in New York. They are also accused of directing an operation from Nato headquarters in Brussels to infiltrate the telephone and email networks at the EU’s Justus Lipsius building in the Belgian capital, the venue for EU summits and home of the European council.


Jim Sinclair’s Commentary

QE is thriving and will go to infinity defined as the US dollar in the low .7000 on the USDX.

QE is still in the play in the Western World…

E.C.B. Chief Defends Bond-Buying Program
Published: June 25, 2013

BERLIN — Mario Draghi, the president of the European Central Bank, on Tuesday again defended its bond-buying program, saying that the strategy was even more important now after recent market turbulence caused by other central banks around the world.

Mr. Draghi, in a speech in Berlin that did not mention any central bank by name, said the offer to buy bonds issued by heavily indebted countries “is even more essential now as we see potential changes in the monetary policy stance, with associated uncertainty, in other jurisdictions of the global economy.”

In the United States, the Federal Reserve has upset markets by indicating that it could taper off its emergency stimulus measures next year. The Fed has been buying longer-term bonds in the open market, depressing long-term interest rates and lifting stocks and bonds.

Meanwhile, the Chinese authorities have tried to rein in excessive lending, leading to a spike last week in interbank borrowing rates. Japan has also said it will add large monetary stimulus.

The E.C.B. has not bought any bonds since announcing its plan last year. But the mere offer has pushed up government bond prices and taken financial pressure off indebted governments by lowering their borrowing costs. The bond-buying help would only be available to countries that sign a bailout agreement with the euro zone’s rescue fund and promise in writing to take steps to reduce their debts and deficits.



Doubting Dudley: NY Fed Chief Says More QE For Longer If Economy Underperforms
6/27/2013 @ 12:24PM

After Fed Chairman Ben Bernanke spooked the hell out of markets, sparking a global downturn in global risk assets speaking of possible QE tapering this year, one of his closest allies in the FOMC, New York Fed chief Bill Dudley, came to his support.  On Thursday, the former Goldman Sachs partner told reporters the Fed generally overshoots its economic projections, indicating that if the outlook isn’t looking all that good, asset purchases could not only continue for longer, but there is also room for them to be ramped up.  Dudley also called markets “out of sync” for their outsized reaction to the Chairman’s comments, and noted deflation remains a risk.

Dudley tried to sound as bullish for markets as he could on Thursday, indicating more QE could easily be in the cards.  “If labor market conditions and the economy’s growth momentum were to be less favorable than in the FOMC’s outlook—and this is what has happened in recent years—I would expect that the asset purchases would continue at a higher pace for longer,” he said, helping U.S. stocks rise in early trading.

One of the most powerful FOMC participants, Dudley was pretty honest to reporters, acknowledging the Fed’s bad record in predicting future economic conditions.  Bernanke’s acolyte also warned of the risk of deflation, as personal consumption expenditures (the Fed’s favored measure of inflation) “[have] slowed sharply over the past year and is now running below the FOMC’s expressed goal of 2 percent.”


Jim Sinclair’s Commentary

The US spies on its people while the EU does something about their situation.

EU leaders agree on measures to boost growth, build banking union

BRUSSELS, June 28 (Xinhua) — European Union (EU) leaders on Thursday and Friday have agreed on a series of measures to boost growth and jobs, and to build a European banking union to maintain financial stability.

"It’s been a productive summit," Herman Van Rompuy, European Council President, told reporters at a press conference after a meeting of EU leaders.

According to Van Rompuy, EU leaders have agreed to scale up the Youth Employment Initiative to eight billion euros (about 10.4 billion U.S. dollars), with most of the money concentrated in the first two years.

To promote jobs for youths, any funds left unspent in the Initiative will go in priority to employment, he added.

Small and medium-sized enterprises (SMEs) would also benefit from the summit in the form of easier access to financing.


Jim Sinclair’s Commentary

Not good for the key asset of the USA dollar, confidence.

NSA Bugged European Union Offices, Computer Networks: Report
Reuters | Posted: 06/29/2013 12:17 pm EDT

BERLIN, June 29 (Reuters) – The United States bugged European Union offices and gained access to EU internal computer networks, according to secret documents cited in a German magazine on Saturday, the latest in a series of exposures of alleged U.S. spy programmes.

Der Spiegel cited from a September 2010 "top secret" document of the U.S. National Security Agency (NSA) which it said fugitive former NSA contractor Edward Snowden had taken with him and which the weekly’s journalists had seen in part.

The document outlines how the NSA bugged offices and spied on EU internal computer networks in Washington and at the United Nations, not only listening to conversations and phone calls but also gaining access to documents and emails.

The document explicitly called the EU a "target".

A slew of Snowden’s disclosures in foreign media about U.S. surveillance programmes have ignited a political furore in the United States and abroad over the balance between privacy rights and national security.