In The News Today

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Jim Sinclair’s Commentary

A picture of the "Emancipation" of physical gold from fraudulent paper gold.

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Playing in commodity markets, investment banks are mere parasites on the economy
Submitted by cpowell on 02:56PM ET Saturday, July 20, 2013. Section: Daily Dispatches

A Shuffle of Aluminum, but to Banks, Pure Gold

By David Kocieniewski
The New York Times
Saturday, July 20, 2013

http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-…

MOUNT CLEMENS, Michigan — Hundreds of millions of times a day, thirsty Americans open a can of soda, beer, or juice. And every time they do it, they pay a fraction of a penny more because of a shrewd maneuver by Goldman Sachs and other financial players that ultimately costs consumers billions of dollars.

The story of how this works begins in 27 industrial warehouses in the Detroit area where Goldman stores customers aluminum. Each day, a fleet of trucks shuffles 1,500-pound bars of the metal among the warehouses. Two or three times a day, sometimes more, the drivers make the same circuits. They load in one warehouse. They unload in another. And then they do it again.

This industrial dance has been choreographed by Goldman to exploit pricing regulations set up by an overseas commodities exchange, an investigation by The New York Times has found. The backand-forth lengthens the storage time. And that adds many millions a year to the coffers of Goldman, which owns the warehouses and charges rent to store the metal. It also increases prices paid by manufacturers and consumers across the country.

Tyler Clay, a forklift driver who worked at the Goldman warehouses until early this year, called the process "a merry-go-round of metal."

More…

Legendary General James Mattis Just Gave One Of The Best Talks On Middle East Policy We’ve Ever Seen
PAUL SZOLDRA JUL. 20, 2013, 8:57 PM

The four-star general, who recently retired after leading U.S. Central Command, which is responsible for Iraq and Afghanistan (among others), spoke at length with CNN’s Wolf Blitzer on Syria, Iran, Israel, and Egypt.

He offered commentary on U.S. foreign and military policy, what is happening in the Middle East, and what he sees going forward.

On what’s happening now in Syria:

Mattis made clear that without the support of the Iranians, Syria’s Bashar al-Assad "would have been overrun" by rebel forces. The reason Iran props up the regime, Mattis reasoned — is that if Assad falls, it would be Iran’s biggest political setback in 25 years.

He also expressed dismay over Iran’s free usage of Iraqi airspace to shuttle arms into the country, saying "when we pulled out of Iraq, we certainly didn’t expect" anything like that.

More…

Britain’s Former Top Spy Threatens To Expose Secrets Of Iraq ‘Dodgy Dossier’
MELANIE HALL, THE DAILY TELEGRAPH JUL. 21, 2013, 6:31 AM

A former head of MI6 has threatened to expose the secrets of the ‘dodgy dossier’ if he disagrees with the long-awaited findings of the Chilcot Inquiry into the UK’s role in the Iraq War.

Sir Richard Dearlove, 68, has spent the last year writing a detailed account of events leading up to the war, and had intended to only make his work available to historians after his death.

But now Sir Richard, who provided intelligence about Saddam Hussein’s Weapons of Mass Destruction (WMDs) that was apparently ‘sexed up’ by Tony Blair’s government, has revealed that he could go public after the Chilcot Inquiry publishes its findings.

Sir Richard is expected to be criticised by the inquiry’s chairman, Sir John Chilcot, over the accuracy of intelligence provided by MI6 agents inside Iraq, which was used in the so-called ‘dodgy dossier’.

Now the ex-MI6 boss, who is Master at Pembroke College, Cambridge University, has said: “What I have written (am writing) is a record of events surrounding the invasion of Iraq from my then professional perspective.

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Get Ready for Rising Commodity Prices
Driven by hot money seeking a low-risk haven
by Charles Hugh Smith
Tuesday, July 16, 2013, 9:27 PM

On the Nature of Conspiracies

The human mind seeks a narrative explanation of events, a story that makes sense of the swirl of life’s interactions.

The simpler the story, the easier it is to understand. Thus the simple stories are the most attractive to us.

This is one reason behind the explanatory appeal of conspiracies: ‘Event X’ occurred because a secret group planned and executed it.

Power groups may indeed have both the motivation and means to influence or control events. Certainly many price-fixing cases that go to trial uncover just such shadowy groups and conspiracies.

Even the Executive branch of government is, in essence, a series of private meetings in which policy makers craft plans to influence or control a series of events. And so we find the Internet a-buzz these days with rumors of grand designs of Orwellian-style populace control.

But conspiracies and power groups do not always provide comprehensive explanations for what we observe.

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Now That Detroit’s Gone Bust, Is Your City Next?
Posted on July 20, 2013 by ffwiley

Detroit’s bankruptcy filing is one depressing read. Poverty, crime, blight – you name the malady and there’s plenty of data to back it up. And unfortunately, Detroit’s not alone. You may be wondering which city hits the wall next.

I’m not making predictions, but I’ve looked at one indicator that may offer some clues: population loss.

As any good Ponzi Schemer will tell you, your future looks much better when there are more people moving in than moving out. Once the population change turns negative, a vicious circle can take hold, and that’s exactly what we saw in Detroit.

In addition to spending excesses and mismanagement, the city’s financial problems stem from the challenges of downsizing infrastructure as quickly as the tax base contracts. Here are a few lowlights from the bankruptcy declaration:

The average cost to demolish an abandoned building – of which Detroit has about 78,000, or 20% of the housing stock – is approximately $8500.

Of about 11,000 to 12,000 fires each year, approximately 60% occur in abandoned buildings.

The city closed 210 parks in fiscal year 2009 and recently announced that 50 of the remaining 107 parks were slated for closure.

The city’s Public Lighting Department is able to keep only about 60% of the approximately 88,000 street lamps in operation.

The Detroit courts’ case clearance rates have been running at only 18.6% for violent crimes and 8.7% for all crimes.

Only 10 to 14 of the city’s 36 ambulances were in service in the first quarter of 2013.

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Jim Sinclair’s Commentary

JP Morgan’s vault catches fire. Could this be the empty vault?

Burn it down, declare "Force Majeaur" on short of gold paper gold futures, and therefore legally suspend the need to deliver? Legally suspend delivery to supposed stored gold for clients?

That would be a neat plan as the gold market forms a new long term bull phase now.