Posts Categorized: General Editorial

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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.

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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