Posts Categorized: General Editorial

Posted by & filed under General Editorial.

Dear International Friends of Gold,

If you are tired of being had by paper gold DOING WHAT IT DID TO YOU THIS US MORNING, the following is the only course of action to end the games being played at your expense. Gold you take delivery of can be insured and shipped anywhere on the globe by Brinks and other recognized express services.

Delivery Process for Gold or Silver:

Delivery – Prudential holds the receipt in PFG’s account for customer
1. Client buys the futures contract.
2. Client will take delivery between First Notice Day and the Last 
Trading Day.
3. On delivery day account is debited cost plus a $50.00 delivery fee.
4. Receipt is booked to customers account
5. Monthly storage charge passed on to customer’s account(about $50.00).

Physical Delivery – Customer wants bars in their procession
1. Client buys the futures contract.
2. Client will take delivery between First Notice Day and the Last 
Trading Day.
3. On delivery day account is debited cost plus a $50.00 delivery fee.
4. We will provide the customer with name and phone number of the 
individual at the depository to contact.
5. Customer makes arrangements for the physical delivery

CIGA JB Slear, who is in the commodity business, offers his services to assist anyone seeking physical delivery of metals. He will guide you through the entire process, including arrangements for delivery.

To be totally clear, I expect JB not to discuss any type of speculation with you but ONLY help you acquire 100 ounce gold bars. Once 21,000 bars have been taken the paper gold’s reign over the price of gold is over.

CIGA JB Slear can be reached at the following:

Fort Wealth Trading Co. LLC
www.FortWealth.com
866-443-0868 ext 104

Posted by & filed under General Editorial.

Dear CIGAs,

Quantitive Easing – the direction the Fed is taking, saying they no longer are interested in buying toxic OTC derivatives with little or no value.

This change may well be a result of Bloomberg’s suit to force the Fed to reveal what these assets are on their balance sheet. This forced change to Quantitive Easing is the strongest tool for blasting trillions into economies.

If you know anything about, monetary science, gold is down on one of the greatest positive gold factors.

In the Japanese experience banks and other institutions did not renew lending significant enough for any positive effect. Many simply took the funds to rebuild their shattered balance sheets.

Quantitive Easing does not provide a basis for dollar strength, no matter what the algorithms say.

Not only was it an internal failure but it took the Yen down about 20%.

The talking heads are now saying that the dollar is the measure of how bad the economy will become. That is foolish in today’s situation

Jim Sinclair’s Commentary

As the balance sheet of the Fed turns toxic on the asset side, the US dollar as the common share of this balance sheet must go down

The Federal Reserve’s balance sheet
October 25, 2008

On Thursday, the Federal Reserve issued its weekly H.4.1 report, which provides details of the Fed’s balance sheet. Once upon a time, this was one of the least interesting of the government’s many releases of data. These days, it’s become one of the most exciting.

The essence of the Fed’s balance sheet used to be quite simple. The Fed’s primary operations would consist of either buying outstanding Treasury securities or issuing loans to banks through its discount window. It paid for these transactions by creating credits in accounts that banks hold with the Federal Reserve, known as reserve deposits. Banks can turn those reserves into green cash any time they desire, so the process is sometimes loosely summarized as saying that the Fed pays for the Treasury bills it buys or loans it extends by "printing money". Before the excitement began, the Fed’s assets consisted primarily of the Treasury securities it had acquired over time (about $800 billion as of August 2007) plus its discount loans (an insignificant number at that time). Its liabilities consisted primarily of cash held by the public (about $800 billion a year ago) plus the reserve deposits held by banks (which again used to be a very small number).

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The Carry Trade
The Return of the Geeks
Jun 07, 2006

I have been thinking about the nightmare carry trade scenario. In other words, what is the worst possible situation for carry trade players?

For those unfamiliar with the term ‘carry trade,’ I will use the definition found on Freebuck.com.

“Carry trade – The speculation strategy that borrows an asset at one interest rate, sells the asset, then invests those funds into a different asset that generates a higher interest rate yield. Profit is acquired by the difference between the cost of the borrowed asset and the yield on the purchased asset.”

The nightmare carry trade scenario: the six conditions

I view the nightmare scenario something like the following:

1. End of quantitative easing (QE) in Japan
2. End of ZIRP in Japan (Rising interest rates)
3. Rising interest rates in Europe
4. Falling interest rates in the U.S.
5. Tightening credit in the U.S.
6. A rising yen vs. the U.S. dollar

The nightmare carry trade scenario: quantitative easing has ended

Quantitative easing has already ended in Japan. Quantitative easing simply means excessive printing of money by the Bank of Japan in order to defeat the deflation that has been raging for about 18 years.

I believe that ZIRP (zero interest rate policy) and QE (quantitative easing) prolonged Japan’s deflation, but for now, that is irrelevant. The key point is that both are about to come to an end. Proof of the

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Jim Sinclair’s Commentary
Quantitive Easing at an unprecedented rate (certainly to take place) combined with 1% interest rates in the US is a road to Weimar. The dollar and the Fed are at the helm.

Therefore:
If you know anything about monetary science, gold is down on the greatest positive factor for gold.

Posted by & filed under General Editorial.

Dear Friends,

Gold is a currency. Gold is not a commodity. It has always been so. It will always remain so. That will once again be proven an axiom when you look back at this period in time.

Do not throw away your insurance. Protect yourself by distancing yourself from your financial agents. Take delivery of paper shares or become a direct registration book entry at the transfer agent.

If you can afford to, take delivery of both gold and silver from the COMEX.

Now your insurance companies are major risks as they have been gambling in OTC derivatives.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear Lie-bor,

We all want to thank you for your excellent demonstration of duty performed for the financial public welfare and donor central banks.

However you might just be pushing a tad too far. It is clear that you are dropping rates so consistently and significantly you intend to go below zero before next Wednesday.

We all know that your quoted rates are your published rates on loans of under $10USD fully backed by $20USD for a term of 12 hours.

Maybe a one day pop up of one basis point would give the entire process some credibility?

Sincerely,
Jim

Posted by & filed under General Editorial.

Dear CIGAs,

Tax expatriation is the renunciation of US citizenship deemed by the IRS as a move to escape US taxation. You think the US IRS would deem otherwise?

Many of you have called and emailed concerning the subject. The general opinion seems to be that my comment was incorrect. Before making judgments on the subject and the impending changes to the act of 1995 based on, as all things seem to be, 9/11 (to become effective 01/1/09), please consult the following:

Taxation Expatriation: Will the Fast Act Stop Wealthy Americans From Leaving The United States?
by BG Cantley

File Format: PDF/Adobe Acrobat

(A) any United States citizen who relinquishes citizenship, and …… The individual expatriate proposal would replace current law on a prospective …

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Posted by & filed under General Editorial.

Dear CIGAs,

Herbert and Bunker, where are you when we need you?

Maybe Chung Phat and Dr. No would be interested.

Taking Delivery of Silver and Gold from the COMEX Warehouse Into Personal Custody:

If you are tired TODAY of being had by paper gold the following is the only course of action that takes a positive step to end the games being played at your expense.

Delivery Process for Gold or Silver:

Delivery – Prudential holds the receipt in PFG’s account for customer

  1. 1. Client buys the futures contract.
    2. Client will take delivery between First Notice Day and the Last Trading Day.
    3. On delivery day account is debited cost plus a $50.00 delivery fee.
    4. Receipt is booked to customers account
    5. Monthly storage charge passed on to customer’s account(about $50.00).

Physical Delivery – Customer wants bars in their procession

1. Client buys the futures contract.
2. Client will take delivery between First Notice Day and the Last Trading Day.
3. On delivery day account is debited cost plus a $50.00 delivery fee.
4. We will provide the customer with name and phone number of the individual at the depository to contact.
5. Customer makes arrangements for the physical delivery

CIGA JB Slear, who is in the commodity business, offers his services to assist anyone seeking physical delivery of metals. He will guide you through the entire process, including arrangements for delivery.

To be totally clear, I expect JB not to discuss any type of speculation with you but ONLY help you acquire 100 ounce gold bars. Once 21,000 bars have been taken the paper gold’s reign over the price of gold is over.

CIGA JB Slear can be reached at the following:

Fort Wealth Trading Co. LLC
www.FortWealth.com
866-443-0868
ext 104

Posted by & filed under General Editorial.

Dear Friends, 

The following article is a Carolina Journal exclusive:

Dems Target Private Retirement Accounts
Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs
By Karen McMahan
November 04, 2008 

RALEIGH – Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts – including 401(k)s and IRAs – and convert them to accounts managed by the Social Security Administration.

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

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Let me first say this is improbable. However:

  1. This would be Draconian.
  2. What idiot feels that the Social Security Administration has any capacity to manage enormous investment funds other than through buying Treasury instruments?
  3. This can only be an idea of how to refinance the pillaged social security funds.
  4. This would not be any different than Chavez’s recent moves.
  5. This would place the US alongside all Banana Republics.
  6. This is not gold.
  7. This is a liberal professor speaking to the left.
  8. This is the most disturbing event to be suggested.
  9. This is not good for the dollar.
  10. This is good for gold.

 

Now having said that, let’s address your major concerns based on today’s calls and faxes.

  1. This is the most disturbing item I have experienced since OTC derivative dealings began in a serious way in 1991.
  2. Discussions of the confiscation of citizen’s assets at this level, no matter how it is presented, has the potential for catastrophic consequences.
  3. If Citizens can have their asset confiscated who in the world would consider the dollar, US Treasuries, or US depositories safe from confiscation without representation?
  4. With the TIC reports already threatening the dollar, consider the flight of petro funds from the US.
  5. Financially the back door was closed by the Patriot Act. On January 1st, 2009 expatriates will have practically all their assets taxed away. That is law and that is fact. The front door is closed because a nation of immigrants refuses to allow legal immigration. The country is locked down.
  6. Never say never regarding confiscation of any asset if in the unlikely case the article above is true.
  7. My solution is public.
  8. Your solution is to do what I have done, not necessarily in the same way.
  9. Incorporate in another country, operate in a third country, trade on multiple national exchanges. It is a form of Harry’s formula of having your money in one country, your citizenship in another country and your body in a third country. For me this is true corporately.
  10. You do not need to do exactly what I have. If you look carefully there are other vehicles which you might already be in that contain the same characteristics.
  11. Take physical delivery of your shares.
  12. Do nothing illegal.
  13. Do not deal with anyone that offers a service that is in the light of day illegal. If you do, they will own you.
  14. If you select to expatriate your gold do it legally.
  15. Gold ETFs will be treated exactly like gold.
  16. Coin dealers will try to talk you into collector gold coins, declaring them free of confiscation risk. They may be but you are entering into an art, not gold market. You will be expertly screwed price wise.

In conclusion, I strongly doubt retirement accounts will be confiscated this early in a new Administration. The USA is still a nation of NASCAR fans in the main. The public would simply go wild.

You cannot try anything illegal as no transfer of funds goes unnoticed today.

The front door is closed and the back door is closed for US citizens on 01/01/09. US citizens simply have to deal with it. I believe I have already.

Take delivery of your shares in the form of paper certificates. As a second option become a direct registration book entry at the respective company’s transfer agent. Do it tomorrow because you already know that soon many gold and silver public companies will become fully computerized and cease the issue of paper certificates while dissuading direct registration if they even allow it.

Every exit is shutting down. “This is it and it is now” takes on a new dimension.

Even though I doubt that such Draconian means will be introduced, I believe in being prepared with all your funds that are now outside of retirement accounts.

We can no longer say never on the possibility of gold confiscation talk at the same level. I still doubt both will ever happen, but be prepared.

Do not act emotionally and pay confiscation tax levels. Cool down and think about things. Nothing so draconian will happen so early in a new Administration – believe me. What was reported is a liberal professor speaking to the left.

Your watchman,
Jim

Posted by & filed under General Editorial.

Dear CIGAs,

The Federal Reserve cannot be the lender of last resort to all nations near and dear and to all major US and international employers. President Obama’s 20 economic advisors will not accomplish anything real. The Federal Reserve under Bernanke has entered dangerous territory that up to now has been the bastion of academics.

As the world turns to the Fed to be bailed out, the question will soon be who will bail out the Fed. The answer is clear – no one. The US dollar is in grave danger due to this shift to so far failed (Japan) academic solutions. In truth, all other solution are failing as well.

This situation is bigger than the US Federal Reserve. The US Federal Reserve cannot accomplish what they have undertaken. If you don’t know that you simply lack a calculator with enough zeros.

The US dollar as the common share of the USA cannot enjoy a bull market while their balance sheet is being torn to shreds.

Gold is a currency, not a commodity. It has always been a currency. Industrial demand is a trivial constituent to the price of gold. There is no question about that. Gold as a currency moves inverse to the US dollar. It has always been so. It will always be so.

Do not fail to protect yourself. You will need every avenue of protection that I have suggested to you.

The US dollar is headed to .72, .62 and .52 on the USDX as a product of the move of the Fed into the “strategy of quantitative easing.”

There is no doubt in the mind of those blessed by understanding that gold is headed to at least $1650.

Order your shares as paper certificates while you still can.

Potential confiscation of retirement plans now being discussed in legislative testimony is the most disturbing scenario I have ever heard.

Consider gold confiscation now a potential whereas it was simply a bad dream before.

Consider that Gold ETFs fit into the confiscation scenario assuming such a draconian act could actually be taken.

Look for juniors that have strong characteristics of selection. These include juniors with strong management with proven track records that are willing to fight for their shareholders, ones with proven resources in the ground, ones that operate in politically sound countries, ones with no derivatives exposure and ones that have internal financing already in place. No we cannot provide you with a list – this is up to you to research on your own.

If I were to construct such a vehicle it would be incorporated outside the USA, do business in a third country and trade outside the USA. Most importantly, the shares should be paper certificated with those certificates in my hands, not the hands of a US brokerage firm.

Fed capitulates: the central bank is broken

Or perhaps better, the entire banking system is broken.

For it appears that the US Federal Reserve has given up on the idea of easing stress on interbank and wholesale lending and is resigned to being the central bank-come-market-maker of last, first and every resort.

For some time now there’s been a debate about the direction of the Fed’s policy. Would we see target rates come down further? Quantitative easing? Massive T-Bill issuance in the open market?

From the Fed yesterday:

The Federal Reserve Board on Wednesday announced that it will alter the formulas used to determine the interest rates paid to depository institutions on required reserve balances and excess reserve balances.

Previously, the rate on required reserve balances had been set at the average target federal funds rate established by the Federal Open Market Committee (FOMC) over a reserves maintenance period minus 10 basis points. The rate on excess balances had been set as the lowest federal funds rate target in effect during a reserve maintenance period minus 35 basis points. Under the new formulas, the rate on required reserve balances will be set equal to the average target federal funds rate over the reserve maintenance period. The rate on excess balances will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period. These changes will become effective for the maintenance periods beginning Thursday, November 6.

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