In The News Today

Posted at 8:29 AM (CST) by & filed under In The News.

Many people are so poor that the only thing they have is money.
–SSB 1981

Jim Sinclair’s Commentary

The more they print the more they are worth? You have to love the Exchange Stabilization Fund.

However, the story will be entirely written here.

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Jim Sinclair’s Commentary

How much more trouble can Morgan afford?

JPMorgan And Citigroup Put Currency Dealers On Leave As Foreign Exchange Scandal Widens
By: DSWright Thursday October 31, 2013 7:51 am

Well, it’s been a few weeks, so are you ready for yet another major scandal from the financial sector? Ready or not here we go. Just as LIBOR starts working its way through the courts, a scandal within the massive foreign exchange or FX market is getting rolling. Much like LIBOR, which involved rigging a market that was the global interest rate for loans, the alleged impropriety in the FX market could touch every financial institution in the world.

So far the investigation is focusing on an instant-message group where currency traders may have conspired to manipulate the foreign exchange market.

Regulators are focusing on an instant-message group the traders set up to share information about their positions and client orders over a period of at least three years, four people with knowledge of the probe said this month. The roster of banks in the group changed as the men moved firms and also included Barclays Plc, Royal Bank of Scotland Group Plc and UBS AG, three people with knowledge of the communications said.

Investigators are weighing whether the messages amounted to attempts to manipulate the market, two people said. The five firms account for about 47 percent of the $5.3 trillion-a-day foreign-exchange market, according to a May survey by Euromoney Institutional Investor Plc. Two other traders, who weren’t part of the conversations and who asked to not be identified because they do business with those involved, said that they and others in the market referred to the message group as “The Cartel.”

Mexican drug lords eat your heart out, this Cartel is playing with trillions not mere billions.

Previously the scandal with FX traders was limited to smaller scale crimes such as traders front-running clients but now it appears traders were manipulating the benchmark rates that ripple throughout the global financial system.

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Jim Sinclair’s Commentary

Rand Paul is not without a good sense of humor.

Sen Rand Paul Introduces Amendment To Make Obamacare Apply To Congress & President

Jim Sinclair’s Commentary

My preparation formula for interviews.

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Jim Sinclair’s Commentary

The trend grows preparing for the freeing of physical gold from paper gold thereby disconnecting the paper game as a manipulation tool. That is clear this morning. Clearly the manipulators are afraid that they must seek to defend their negative opinion for any positive influence. This ends soon.

Dubai to Add Spot Gold Contract

About a quarter of all the physical gold traded around the world already passes through Dubai, the commercial hub of the United Arab Emirates, but DGCX, as the exchange is known, is looking to continue expanding this trade, which has grown from $6 billion in 2003 to $70 billion last year, according to data from the Dubai Multi Commodities Centre. This is part of a trend that is seeing the volume of gold passing through established gold-trading venues in the West—London, New York and Zurich—gradually shifting eastward, to Dubai, Singapore, Hong Kong and Shanghai.

The emirate, which has adopted the title “City of Gold,” is well-situated to facilitate trading of the precious metal—between producers in Africa and consumers in Europe and Asia.  Around a quarter of the gold that passed through Dubai in 2012 made its way to India, which in 2012 accounted for nearly a fifth of global physical demand, according to data in a World Gold Council report.

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Jim Sinclair’s Commentary

See, Uncle will always take care of you just like Uncle has promised.

Social Security benefits to go up by 1.5 percent
By STEPHEN OHLEMACHER
Oct 30, 3:43 PM EDT

WASHINGTON (AP) — Social Security benefits will rise 1.5 percent in January, giving millions of retired and disabled workers an average raise of $19 a month to keep up with the cost of living.

The increase is among the smallest since automatic adjustments were adopted in 1975, and reflects the fact that consumer prices haven’t gone up much in the past year. The annual cost-of-living adjustment, or COLA, is based on a government measure of inflation that was released Wednesday.

"Yea. Whoop-de-do," said Lance Colvin, a retired office worker in Kirkland, Wash. "That’s my opinion."

Automatic COLAs were adopted in 1975 so that benefits for people on fixed incomes would keep pace with rising prices. Some advocates for older Americans, however, complain that the COLA sometimes falls short, especially for people with high medical costs.

Michael Hartzog of Charleston, S.C., said the small COLA will make it difficult to keep up with his wife’s medical bills.

"We’ll probably need to reduce our spending even more," Hartzog said. "I don’t know exactly how."

Hartzog, 63, is retired after working 38 years at the Social Security Administration in South Carolina. He said his federal pension and Social Security benefits are affected by the COLA.

The COLA affects benefits for more than one-fifth of the country: nearly 58 million Social Security recipients, as well as benefits for millions of disabled veterans, federal retirees and people who get Supplemental Security Income, the disability program for the poor.

Social Security pays retired workers an average of $1,272 a month. A 1.5 percent raise comes to about $19.

Benefits are based on lifetime earnings. The more you make, the higher your benefit – to a point. For someone who retired this year at age 66, the maximum monthly benefit is $2,533. That person will get a raise of about $38 a month.

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Jim Sinclair’s Commentary

As reported by the Standard in HK. A different view from the permanent anti QE, taper-positive, financial TV.

Fed says US economy too weak to pull back
(10-31 08:47)

The US Federal Reserve says the economy still needs support from low interest-rate policies because it is growing only moderately

In a statement Wednesday after a two-day policy meeting, the Fed says it will keep buying US$85 billion a month in bonds to keep long-term interest rates low and encourage more borrowing and spending

It also says it plans to hold its key short-term rate at a record low near zero at least as long as the unemployment rate stays above 6.5 percent and the inflation outlook remains mild

The Fed again noted that budget policies in Washington have restrained growth, but it made no mention of the 16-day government shutdown. However, the Fed no longer expressed concerns about higher mortgage rates, a concern it flagged in September, AP reports

The Fed’s policy decision was approved on a 9-1 vote with Esther George, the president of the Kansas City Federal Reserve Bank, dissenting as she has done at each of the central bank’s seven meetings this year

At its previous meeting in September, the central bank surprised investors and economists when it chose not to reduce its bond buying. Since then, the partial shutdown shaved an estimated $25 billion from economic growth this quarter. And a batch of tepid economic data point to a still-subpar economy

Employers added just 148,000 jobs in September, a steep slowdown from August. And temporary layoffs during the shutdown are expected to depress October’s job gain

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