Posts Categorized: General Editorial

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.

More…

 

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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Posted by & filed under General Editorial.

Dear Friends,

The key element in this article is the word “Predators.”

What would you do if a predator injured your nearest and dearest and the law looked the other way?

What would Arjuna or the Earp Brothers do?

You certainly would not buy them and therein reward evil. You would terminate the problem. You can’t inflict injury without expecting retribution.

That is the spiritual law of instant Karma.

These money changers must be driven by force out of their money changing. In a world of spiritual and materialistic evil, problems may require solutions at their level of operation.

Your Watchman,
Jim

Sarkozy Turns Sovereign Fund Idea Upside Down: Michael R. Sesi 

Nov. 7 (Bloomberg) — It was bound to happen. And it should surprise no one that the French were the ones to initiate it.

French President Nicolas Sarkozy last month proposed that European countries establish sovereign wealth funds to purchase stakes in key companies in the region to foil overseas “predators” seeking control at knockdown prices.

“I wouldn’t want to see European citizens wake up in a few months and discover that a European company is owned by non- European investors who bought at a rock-bottom price,” Sarkozy told the European Parliament on Oct. 21.

The good news is that Germany, Europe’s biggest economy, shot down the idea. Still, that didn’t deter the French head of state from going it alone.

“I will not be the French president who wakes up in six months’ time to see that French industrial groups have passed into other hands,” Sarkozy told French business leaders in Argonay in the French Alps two days later. Europe “mustn’t be naive, mustn’t leave its companies at the mercy of all predators, mustn’t be the only one not to defend its interests, not to protect its citizens.”

More…

Posted by & filed under General Editorial.

Dear Friends,

Gold is a currency, so therefore what is good for the US dollar is not good for gold. What is bad for the US dollar is good for gold. It all ends right there.

It is time again to remind you to focus on why we are right, not those items that anti-gold interests spread around the internet.

You cannot compare the condition of the US dollar and gold in the Clinton Administration in light of the probability that President elect Obama will draft many of them. The economic conditions now and then have no comparison whatsoever.

The inflation/deflation/recession/depression arguments will fall flat on their face just as they did in the 70s.

The argument that there is more problems in the central European area than in the US fails on comparison of the financial industry between the two and the much smaller amount of over the counter derivatives held.

The fact that the Federal Reserve is financing the bailout of central European countries via swap arrangements with other central banks and the IMF brings all the planet’s problems back to the US dollar in time.

Posted by & filed under General Editorial.

Dear Friends,

Gold is a currency that you will see perform as the currency of choice. There is no doubt we are headed into a planetary Weimar experience to some degree.

Dollars are being created faster now than in any other period in history. The Fed and treasury are guaranteeing everything from money market funds to large corporate entities in one way or another.

The first valuation of worthless OTC derivatives via a public sale of these at .0875 to .02 cents shocked anyone with a brain. Now the downturn in business is hitting financial entities and shortly litigation will smoke whatever is left.

The FDIC is already yelling for additional and significant funding from congress as their capital contracts on every Friday’s bailout.

People expect things to return to normal in 2010. That is a fairy tale.

The Fed has only started creating money for bailouts. You saw what happened when they stepped away from Lehman. If you say you didn’t look out the window.

All these bailouts and Federal guarantees on credit items constitute a white wash on a falling economic structure going out of control and soon.

The out of control point of major planetary dislocation is between 14 and 89 days from now.

INSURANCE ON SALE

Gold is the only viable insurance. The US dollar is not viable insurance because there is simply too much of it and that amount is growing every day. That makes the US dollar untrustworthy.

Gold is the only viable insurance. Clearly equities (with the exception of precious metals shares) are not.

Gold is the only viable insurance. US Treasury bills are not because the yelling at all the rating agencies in Washington today just might get US credit downgraded.

General commodities have been viable, but by nature they are too wild and from now on will be selective until Pakistan implodes and Weimar appears

Banks cannot offer insurance as they are in the main bankrupt.

Insurance companies cannot offer you sound insurance.

Money market funds are not insurance, making gold the only viable insurance.

Retirement programs are no longer insurance.

Jobs are no longer insurance as companies are run by lawyers and accountants.

Equity in your home is not insurance because it simply does not exist.

Your family is no longer insurance because they have the same problems you do.

The assumption your kids will take care of you in your old age is not viable insurance no matter what you think.

Gold has no liability attached to it and is therefore the only viable insurance.

Gold is universally exchangeable, making it the only viable insurance.

Gold has historically performed perfectly in maintaining buying power, making it the only viable insurance.

Gold is the only viable insurance because it is Honest Money.

Since gold is the only viable insurance and because everyone needs it, gold will trade at levels of at least $1200 and $1650.

I could go on but gold is all there is that will protect you from the White Wash being applied by the Fed and Treasury on a structure that is in fact in a free fall.

I am not the least concerned about gold and believe you should not be either as long as you have no margin and understand what gold really is: a currency and an insurance policy. There is no other viable insurance in this most unusual situation.

Please review the Formula as the US Federal Budget is going ballistic as the TIC report contracts like a turtle into its shell.

Jim’s Formula:
September 1, 2006

  1. First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.
  2. This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella – Goldilocks situations.
  3. We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announced poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.
  4. The formula economically is inherent in #2 which is lower economic activity equals lower profits.
  5. Lower profits leads to lower Federal Tax revenues.
  6. Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.
  7. The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.
  8. The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).
  9. It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.
  10. If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.
  11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.
  12. This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.
    Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.
    I heard all this “slow business” as negative to gold talk in the 70s. It was totally wrong then. It will be exactly the same now.

Respectfully yours,
Jim< ><-->

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.

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