Posts Categorized: General Editorial

Posted by & filed under General Editorial.

My Dear Friends,

1. President Obama was JUST given the hook by having his speech flushed away on Bloomberg TV in preference for Trichet speaking privately to Bloomberg at Davos. Man that was a big mistake on Bloomberg’s part.

2. Once again you permit the Comex short gang to paint their own chart for gold in the short term. As long as the more financially capable members of the gold gang do not buy gold on the Comex and take delivery the knuckle draggers from the gold banks will continue to take from all of you. Gold is headed to Alf’s number but if the Comex has their way it is 10 feet forward and nine feet backward.

Regards,
Jim

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Money_Page1 Money_Page2 Zimbabwe1 Zimbabwe2 gold - 20090127_081348

 

Dear Friends,

They say this is impossible and will never happen in the West. The transition however is clear and common to all experiences of hyperinflation – a currency event whose foundation is in the sand of weakening confidence.

Money:

First is a contract between the issuer and holder as in the gold certificate. Then it is a piece of paper whose amount outstanding is politically motivated that promises nothing and contracts for less.

a. In Zimbabwe there was a transition from reputable management to special interest favouritism. Such a change has been considered by many as an example of Fascism.
b. In Zimbabwe government income was non-existent when compared to government expenditures.
c. In Zimbabwe the military became the favored industry for government spending.
d. In Zimbabwe all the economic initiatives failed miserably.
e. In Zimbabwe there are rumors of bank and public fund looting.
f. In Zimbabwe economic statistics are unreliable by many.

Could such a thing occur in the West or has it already? If it could occur or has occurred it swamps anything that ever happened in any previous example of hyper-inflation, a currency event based in the weak foundation of confidence.

The conclusion is clear. Gold is the only Honest money there is, has even been or will ever be.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Texas will return to College Station next weekend for the Big 12 vs. SEC meet, where the Aggie faithful might be more willing to cheer for the Longhorns.

“I know the crowd, as much as they want us to win, they want Texas to lose,” said Texas A&M sprinter "Justin Oliver," who won the 400 meters. “It was a great atmosphere in here to know so much emotion and history was involved with a meet like this. Plenty of people in here have been following this rivalry for decades.”

— Austin Talbert

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Dear CIGAs,

The day in 2009 that insolvency comes in the planetary form, you can be sure of only one thing: You will not know it.

Your government, whomever they are, will keep the collapse a total secret until you are completely wiped out by hyper-inflation and/or insolvency of your retirement plan.

You cannot trade your way to insurance. That concept is egomaniacal and downright stupid.

Own gold and gold shares or you will be the victim of your government and the media’s feeling that you are:

NOT WORTHY OF THE TRUTH

Revealed: Day the banks were just three hours from collapse
By Glen Owen
Last updated at 11:21 PM on 24th January 2009

Britain was just three hours away from going bust last year after a secret run on the banks, one of Gordon Brown’s Ministers has revealed.

City Minister Paul Myners disclosed that on Friday, October 10, the country was ‘very close’ to a complete banking collapse after ‘major depositors’ attempted to withdraw their money en masse.

The Mail on Sunday has been told that the Treasury was preparing for the banks to shut their doors to all customers, terminate electronic transfers and even block hole-in-the-wall cash withdrawals.

Only frantic behind-the-scenes efforts averted financial meltdown.

If the moves had failed, Mr Brown would have been forced to announce that the Government was nationalising the entire financial system and guaranteeing all deposits.

But 60-year-old Lord Myners was accused last night of being ‘completely irresponsible’ for admitting the scale of the crisis while the recession was still deepening and major institutions such as Barclays remain under intense pressure.

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Jim’s Outlook On 2009
Posted: Jan 26 2009 By: Jim Sinclair Post Edited: January 26, 2009 at 12:20 am
Filed under: General Editorial

Dear CIGAs,

1. Before 2009 is out the next major economic shock will become obvious. There is not one major funded retirement program intact thanks to the manufacturers and distributors of OTC derivatives. The unfunded ones are a total loss. Retirement in the future is totally out of the question. Many now retired will end up in the same situation as those trying to live off fixed income. Both categories are being culled from the human gene pool.

2. By my 68th birthday Obama will recognize his position as a bagged President, knowing then that the economic situation does not have any practical solution.

3. By July 4th, 2009 the rally in the US dollar will have become a simple hope for the lows to hold.

4. My long held targets of $1250 and $1650 for Gold that were once laughed at as outrageously high can now be laughed at for being painfully too low.

5. Only gold and related shares are insurance against the economic cataclysm now taking place.

 

Everyone is looking for where and when the top in gold will come. Will it be Jim’s $1650 or Alf Field’s $10,000 plus before it comes back down?

To put it nicely, you are all wrong. Gold is going up and STAYING up.

There is no top to look for because like all things people strive for, the top does not exist.

Gold will trade within $200 of a given point as a product of the Master of the Financial Universe, Paul Volcker, taking control when all this is totally out of control. He will instate the revitalized and modernized Federal Reserve Gold Certificate Ratio, not gold convertibility, and not tied to interest rates as an automaticity. Only then can Volcker put in place policy backed by the sitting administration that has a provable history of starting the change from deficit to surplus, his price of saving the world one more time.

The Gold mining business will then be the best business there is and the highest dividend paying monetary utility.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear CIGAs,

1. Before 2009 is out the next major economic shock will become obvious. There is not one major funded retirement program intact thanks to the manufacturers and distributors of OTC derivatives. The unfunded ones are a total loss. Retirement in the future is totally out of the question. Many now retired will end up in the same situation as those trying to live off fixed income. Both categories are being culled from the human gene pool.

2. By my 68th birthday Obama will recognize his position as a bagged President, knowing then that the economic situation does not have any practical solution.

3. By July 4th, 2009 the rally in the US dollar will have become a simple hope for the lows to hold.

4. My long held targets of $1250 and $1650 for Gold that were once laughed at as outrageously high can now be laughed at for being painfully too low.

5. Only gold and related shares are insurance against the economic cataclysm now taking place.

Posted by & filed under General Editorial, Guild Investment.

Dear CIGAs,

IT IS NEVER WISE TO INSULT YOUR BIGGEST CUSTOMER, ESPECIALLY WHEN YOU PLAN A BIG SALE OF PRODUCT THAT YOU WANT THEM TO BUY. Even if you have political debts to large donors who do not care about what is best for the average American, they care only about what is best for them.

Respectfully yours,

Monty Guild
www.GuildInvestment.com

Chinese Ministry Denies Geithner’s Currency Claims
JANUARY 25, 2009, 9:35 P.M. ET
By IAN JOHNSON and SHEN HONG

BEIJING — A Chinese ministry Saturday strongly denied Obama administration claims that China "manipulates" its currency, as the first contact between the new administration and China takes a markedly sour tone.

On Thursday, President Obama’s nominee for Treasury secretary, Timothy Geithner, told U.S. lawmakers that President Barack Obama, "backed by the conclusions of a broad range of economists — believes that China is manipulating its currency." No Chinese official of Mr. Geithner’s standing has fired back — a move analysts say shows that China doesn’t want to overreact to the statement — but Saturday morning an official from China’s Ministry of Commerce said "we never have used currency manipulation or exchange-rate manipulation as a mains to gain an advantage in international trade." The statement, provided by an official from the ministry’s news department, also said China would not "rely on devaluations" of its currency, the yuan, to promote exports.

Some Chinese commentators say the verbal sparring is a sign of greater trade friction to come with Washington. They noted that both sides’ comments were written, not spoken — and therefore should be taken as a serious view of intent.

"This is the first communication by the new president’s team to China and it is provocative," said Shen Dingli, professor of international relations at Fudan University in Shanghai. China’s official Xinhua news agency also weighed in Friday evening, saying that Mr. Geithner’s claim "fans Sino-U.S. trade fears," alluding to concern in Beijing over protectionism in the new administration.

Chinese officials are deeply concerned that the global economic downturn could spur protectionist moves in the U.S. and elsewhere that could further damage China’s trade-dependent economy. Mr. Geithner’s comments marked a significant escalation in U.S. criticism of China’s exchange-rate system.

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Jim Sinclair’s Commentary

#28 and counting!

First Centennial Bank of California Shut by Regulator (Update1)
By Margaret Chadbourn and Ari Levy

Jan. 23 (Bloomberg) — First Centennial Bank of Redlands, California, was seized by a state regulator, the third U.S. bank to fail this year, as the recession deepens and the slump in the housing industry sends home foreclosures to records.

First Centennial, with $803.3 million in assets and $676.9 million in deposits, was shut by the California Department of Financial Institutions and the Federal Deposit Insurance Corp. was named receiver. First California Bank, based in Westlake Village, will assume deposits. The failed bank’s 6 offices will open Jan. 26 as branches of First California, the FDIC said.

“Depositors of the failed bank will automatically become depositors of First California,” the FDIC said in an e-mailed statement. “There is no need for customers to change their banking relationship to retain their deposit insurance coverage.”

Regulators closed 25 banks last year, the most since 1993, draining money from the FDIC deposit insurance fund, which had $34.6 billion as of Sept. 30. National Bank of Commerce in Berkeley, Illinois, and Bank of Clark County in Vancouver, Washington, were shuttered by regulators on Jan. 16.

First California will buy about $293 million in assets and will pay a premium of 5.3 percent to assume the failed bank’s insured deposits, the FDIC said. The cost to the deposit insurance fund, supported by fees on insured banks, will be an estimated $227 million, the agency said. First Centennial had about $12.8 million in deposits that exceeded insured limits, the FDIC said.

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