Posts Categorized: General Editorial

Posted by & filed under General Editorial.

Dear Friends,

There will be many forecasting market results of the election of President Obama. I suggest we wait to see his cabinet in order to look to the future with any degree of accuracy.

What we do know is:

  1. Many of the evil money ruler geniuses are out of the lime light.
  2. Even if Wall Street is still pulling strings, this Administration will not have Paulson who jiggled every market on the planet fairly well.
  3. The PTT team, if it exists, will be made up of lesser lights because the past Administration ruled that.
  4. All the problems are still out there as virulent cancers that have spread out of control in the financial market and are not operable. Thank you all you OTC derivatives that up to now have not been singled out to accept blame. This could change but do not count on it.
  5. You can count on fiscal stimulation as it is a tenet of how the Democratic mind moves.
  6. You can count on higher taxes for Daddy Warbucks and reductions for the ordinary man who carries the Federal Budget money-wise.
  7. You can count on an interesting period in terms of geopolitical challenges to the USA from their many enemies in order to size up the new leadership.
  8. You can count on meaningless dialog with all those about to test the new Administration geopolitically.
  9. You can count on gold at $1200 and then $1650.
  10. You can count on the US dollar trading at USDX .72, .62, and.52.
  11. You can count on the reestablishment of social and economic safety nets.
  12. You can count on the now shredded Constitution remaining shredded. Once power comes into an Administration it stays their permanently.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear CIGAs,  

Here is some information for all of you to help us recapture the price from the gold banks.

Contracts: An Overview

Contracts are promises that the law will enforce. The law provides remedies if a promise is breached or recognizes the performance of a promise as a duty. Contracts arise when a duty does or may come into existence, because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for adequate consideration. Adequate consideration is a benefit or detriment which a party receives which reasonably and fairly induces them to make the promise/contract. For example, promises that are purely gifts are not considered enforceable because the personal satisfaction the grantor of the promise may receive from the act of giving is normally not considered adequate consideration. Certain promises that are not considered contracts may, in limited circumstances, be enforced if one party has relied to his detriment on the assurances of the other party.

More…

Jim Sinclair’s Commentary

The following is a review of the conditions of COMEX Rulebook Chapter 113 that constitutes the contract between buyer and seller on the COMEX gold contract.

Delivery cannot be denied legally to any party of any definition that is on the long side of the delivery and is prepared to make full payment by having those funds available at his brokerage firm.

A default by the COMEX has nothing to do with a financial failure but rather a failure to perform according to the contract by making delivery.

That violation of obligation would result in cash only trades with 100% margin and would destabilize and stop the Gold Bank’s ability to own the price.

If you are tired of being had by paper gold the following is the only course of action if you wish to take 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. 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

 

The COMEX contract you are party to when long gold in terms of delivery which must be adhered to or default occurs. There is legal remedy for this default.

 

COMEX Division – Gold Rules

113.01 Tenderable Gold
113.02 Approved Refiners; Licensed Depositories; Licensed Weighmasters; Approved Deliverers; Approved Assayers
113.03 Weight Certificates and Assay Certificates for Gold
113.04 Packaging of Tenderable Gold
113.05 Storage of Gold
113.06 Gold Deposit Annual Audit Procedures
113.07 Form of Gold Contract
113.08 Delivery Months and Days for Trading in Gold
113.09 Price Multiples for Gold
113.10 Deleted
113.11 Delivery Notice for Gold
113.12 Delivery of Gold

113.01 Tenderable Gold

In fulfillment of every contract of gold, the seller must deliver 100 troy ounces (5% more or less) of refined gold, assaying not less than 995 fineness, cast either in one bar or in three one-kilogram bars by an approved refiner. The weight, fineness, bar number and identifying stamp of the refiner must be clearly incised on each bar by the approved refiner. 

113.02 Approved Refiners; Licensed Depositories; Licensed Weighmasters; Approved Deliverers; Approved Assayers

(a) The Board Trade Group, upon the recommendation of the Committee on Precious Metals, shall designate as approved refiners those gold refiners whose gold bars shall be accepted as tenderable gold in connection with deliveries of gold in fulfillment of an Exchange contract for gold. Additional approved refiners may be designated in the same manner from time to time. The Board Trade Group may also terminate the designation of a gold refiner at any time as an approved refiner, and from and after the date of such termination, gold produced by such refiners may not be placed in a licensed depository for delivery in fulfillment of an Exchange contract for gold. Neither the addition nor deletion of a gold refiner as an approved refiner shall be deemed to affect the amount of money to be paid or the grade or quality of gold to be delivered in fulfillment of an Exchange contract for gold, and shall be binding upon all contracts entered into before as well as after the adoption of any such change, anything in these Rules to the contrary notwithstanding.

More…

 

Posted by & filed under General Editorial.

Dear CIGAs,

As letting Lehman declare bankruptcy proved without any doubt, once you start Federal bailouts of all and everything you cannot stop.

They have opened a Pandora’s Box of providing dollars at home and at the home of all of the near and dear allies.

There is no way out now. The supply of dollars has risen in an unprecedented manner and this is only a harbinger of what lies ahead.

There is no way that a strong dollar can sustain itself alongside an  avalanche of new dollars being created electronically to hold up every major business, OTC derivative manufacturer and financial entity worldwide.

Here are a few requests coming this month.

Officials Seek Transit Rescues 
Total Exposure Could Be Up to $4B Bond Buyer  |  Oct 27 
WASHINGTON – State officials and lawmakers Friday were holding emergency meetings and pressing the Treasury Department to rescue public transit deals facing billions of dollars of payments.

Treasury Urged to Back SILO, LILO Deals Bond Buyer  |  Oct 28 
WASHINGTON – The Treasury Department must take the place of American International Group Inc. as guarantor of transit agency sale-leaseback deals to avoid “financial disaster” for state and local governments, a group of lawmakers warned Treasury and Federal Reserve officials yesterday.

JPMorgan Ditches $300M Deal; Miami-Dade Left in the Lurch Bond Buyer  |  Oct 27 
BRADENTON, Fla. – When JPMorgan Chase refused to renew a standby bond purchase agreement that expired Sept. 29 for more than 90 days, Miami-Dade County was forced to seek a substitute provider for nearly $300 million of variable-rate demand water and sewer bonds issued in 2005.

Alabama Files to Void Swaption 
State Wants to End Deal With JPMorgan     Bond Buyer  |  Oct 30 
BRADENTON, Fla. – Alabama on Tuesday filed a complaint in federal court asking a judge to void a swaption the Alabama Public School and College Authority entered into in 2002 and 2003 with JPMorgan.

S.F. Airport Restructuring No Laughing Matter Bond Buyer  |  Oct 27 
SAN FRANCISCO – As the auction-rate securities market meltdown raged this spring, San Francisco International Airport rushed to restructure hundreds of millions of dollars of ARS with variable-rate demand obligations, trying to beat other issuers to the market before liquidity dried up.

WMATA Seeks Court Order Against Creditors Bond Buyer  |  Oct 30 
WASHINGTON – The Washington Metropolitan Area Transit Authority sought court action yesterday to prevent it from having to make a $43 million termination payment on a sale-leaseback deal guaranteed by American International Group Inc.

Groups Want Facility for ARS Conversions Bond Buyer  |  Oct 29 
As liquidity for municipal issuers remains scarce in the short-term market, a regional broker-dealer group and an organization representing nonprofit student loan lenders are urging the Treasury Department to provide standby liquidity facilities for issuers still trying to convert from auction-rate securities to variable-rate demand obligations.

Posted by & filed under General Editorial.

Dear Friends,

If you are tired of being had by paper gold the following is the only course of action if you wish to take 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. 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,

I, like yourself, am fed up with the gold bank’s ownership of the gold price via paper instruments. Therefore I respectfully ask those that can afford it to purchase as many Comex contracts as you can afford to take delivery of and do so.

Accept my assurance that I will take delivery of Comex 100 ounce bars on every delivery month from this day forward.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear Friends,

There is absolutely no question in my mind that gold will trade at $1650 on or before (probably much before) January 14th, 2011.

Regardless of what financial TV or popular analysts claiming never to have made an error say, we are correct.

Stay the course. Do not let your guard down. Protect yourself as the most significant dislocation economically in world history for major nations is at our doorstep. In fact it is one foot through your door already. Are you prepared?

You ask why? Then read on!

There seems to be some degree of assumption that each action by the Fed brings the credit lockup closer to being corrected.

There are many challenges to this assumption.

Will banks use funds to patch up their pillaged balance sheet or actually start loaning in a progressive manner? The answer is balance sheet as they really have no alternative.

As in the case of AIG below, is any cash bailout enough to bail out losers? We need to remember that what OTC derivatives do not do to financial or any other entity, the drop in earnings will. Whatever is left over litigation will pick the bone clean of.

Regulators went from 12 to 1 leverage to 40 to 1 leverage where a 2-½% change in total asset value would bust financial institutions. The losses taken are not bookkeeping, but are hard and real.

The only thing bookkeeping did was allow these losses to be maintained in full value because they were OTC derivatives, not listed derivatives with a clearinghouse guarantee. Clearinghouses demand losers pay in and winner are paid out daily while there is no such facility for OTC derivatives. Because of no clearinghouse function, banks and other entities carried the declining value in OTC derivatives at full value at 40 to 1 leverage.

The bailout funds are simply putting a thumb into the leak in the dyke as more holes open up from earnings declines, slow business and serious litigation.

The TIC report is looking quite bad, indicating that dependence on non-US entities to finance a budget deficit that is about to go ballistic cannot be depended on.

All that we have seen is emergency action without limits to hold financial zombies from being discovered by the general public.

The US Fed is in fact holding up the entire world that is near and dear to them. One of the methods is through swaps, which are a form of OTC derivatives and just like the disease, are off balance sheet items.

There is no limit to what the US Fed and Treasury will do in the next few months. It will be discovered in the not too distant future that the US dollar has moved into critical oversupply. At that point expect to the see the US dollar drop like a stone and gold trading at $1200 and $1650.

The US dollars will see.72 again prior to .62 and .52.

The limiting factor to the present terminal financial condition under the Fed and Treasury bandage bailout is the US dollar. There is no escaping the event of publicly recognized dollar oversupply, the ineffectual nature of bailouts and the appearance of hyper-inflation in the midst of non-recovering business conditions.

Keep firmly in mind that retired Chairman Volcker has described this situation as “We have a failed financial structure.” He went on to describe the condition of the financial situation as “Code Blue.”

What you see now is only the beginning of a great economic drama, out of control and nowhere nears its end.

This is it. It is now!

Gold is the only entity that has the capacity of insuring your future buying power, maybe even more.

Enough said.

Respectfully,
Jim

AIG Already Running Through Government Loans
By Mary Williams Walsh, | 30 Oct 2008 | 06:51 AM ET

The American International Group is rapidly running through $123 billion in emergency lending provided by the Federal Reserve, raising questions about how a company claiming to be solvent in September could have developed such a big hole by October. Some analyst’s say at least part of the shortfall must have been there all along, hidden by irregular accounting.

“You don’t just suddenly lose $120 billion overnight,” said Donn Vickrey of Gradient Analytics, an independent securities research firm in Scottsdale, Ariz.

Mr. Vickrey says he believes AIG [AIG  1.64    0.09  (+5.81%)   ] must have already accumulated tens of billions of dollars worth of losses by mid-September, when it came close to collapse and received an $85 billion emergency line of credit by the Fed. That loan was later supplemented by a $38 billion lending facility.

But losses on that scale do not show up in the company’s financial filings. Instead, AIG replenished its capital by issuing $20 billion in stock and debt in May and reassured investors that it had an ample cushion. It also said that it was making its accounting more precise.

Mr. Vickery and other analysts are examining the company’s disclosures for clues that the cushion was threadbare and that company officials knew they had major losses months before the bailout.

More…

Posted by & filed under General Editorial.

Dear CIGAs,

Gold is a currency.

Paper currency insures nothing.

Gold is insurance.

Gold is not a commodity.

Gold will trade at a minimum of $1650 MUCH SOONER THAN I HAVE ANTICIPATED.

The shorts in gold shares will get what they deserve – financial decimation.

Your friend,
Jim