Posts Categorized: General Editorial

Posted by & filed under General Editorial, Jim's Mailbox.

Dear Jim,

What? There is a bottomless pit of money? Unbelievable!

Green Hornet

(Click images to enlarge)

zimbabwe-2008-01-18 Zimbabwe1

U.S. governors seek $1 trillion federal assistance
Fri Jan 2, 2009 5:48pm EST
By Jon Hurdle

PHILADELPHIA (Reuters) – Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country’s 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin — all Democrats — said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.


Dear Green Hornet,

No, there is no bottomless pit of money!

There is a bottomless pit of worthless PAPER. This is the thesis of Mugabe/Zimbabwe economics, and will have the same results as applied by Mugabee/Zimbabwe.

The reality is that yes, the Zimbabwe paper pit is quite possible in the US dollar scenario. It is not only possible but getting closer to probable with each event as discussed below. Wake Up!

Break the "illusion" and see the "real" situation. It is just that SIMPLE.

People believe the Illusion to be real and the real to be an illusion until they WAKE UP!

I have only one agenda here.



Posted by & filed under General Editorial.

image001 - 20081231_100810

Jim Sinclair’s Commentary

A hint for the market "Wise Guys."

We are so very close to the geopolitical event that will not be faded into the marketplace.

Definition: To "Fade" is to trade counter-trend.

1. Israel makes a miscalculation.
2. Pakistan goes nuclear.
3. Both of the above are 5th column operations, not in control of those in control.


Jim Sinclair’s Commentary

In a generic sense, and under no circumstances referring to the company below:

Is it paper gold, OTC derivatives written on gold by Lehman, Bear, UBS, or Gold as in the stuff that is heavy, shiny and .9995 pure or better?

Have you read the prospectus? If not, please do.

Only the Shadow knows!

Biggest Gold ETF Holds Its Weight
‘Positive Sign That Demand Is Firm’

Holdings in the world’s largest gold exchange-traded fund are at a record level as 2008 winds down, providing some healthy optimism for the market in coming months.

Metal held by SPDR Gold Shares (trading symbol GLD) climbed to 705.90 metric tons on July 11, before backing down to 614.35 in mid-September amid a liquidation selloff throughout the commodities complex. Since then, holdings are on the rise again.

The SPDR Web site shows the holdings at a record 775.33 metric tons each business day since Dec. 17. This represents an increase of 23.5% from 627.88 metric tons at the end of 2007.

Holdings in the world’s main silver ETF, iShares Silver Trust (SLV), are near their all-time high. They stand at 6,792.99 metric tons, not far below the peak of 6,901.41 in late September.

Rising ETF holdings are generally described as supportive for a commodity such as gold or silver, because it generates actual physical demand, analysts say.



Jim Sinclair’s Commentary

Hamas is a side show compared to Pakistan. A fresh offensive against the militants? Who are you kidding?

India to Pakistan: Shut down terror camps
Tue, 30 Dec 2008 18:41:17 GMT

India calls on Pakistan to dismantle terror infrastructures on its soil and take an immediate action against those behind the Mumbai siege.

Foreign Minister Pranab Mukherjee on Tuesday demanded Pakistan to dismantle about 30 terrorist camps situated on the Line of Control in divided Kashmir.

Mukherjee also rejected Islamabad’s claim that New Delhi had mobilized its army and air force in the aftermath of November’s attacks, saying Indian forces had only conducted a routine annual winter exercise.

The minister also emphasized that India and Pakistan will exchange information and take confidence-building measures over the two neighbors’ nuclear capability on January 1.

Mukherjee insisted that India would continue to put pressure on Pakistan through diplomacy.


Pakistan kills 3 in Afghan supply route operation
By RIAZ KHAN Associated Press Writer © 2008 The Associated Press
Dec. 31, 2008, 8:56AM

PESHAWAR, Pakistan — Pakistani troops killed three militants in an operation to secure the major supply route to U.S. and NATO troops in Afghanistan, an official said Wednesday.

The route through the famed Khyber Pass remained closed for a second day because of the operation but will hopefully reopen soon, said Fazal Mahmood, a local official.

The U.S. military has praised the campaign and said the temporary closure of the road was not a problem.

Western forces in landlocked Afghanistan rely on the winding, mountainous road for delivery of up to 75 percent of their fuel, food and other goods, which arrive in Pakistan via the port city of Karachi.

Militants have staged repeated attacks on supply convoys heading along the pass across Pakistan’s western border to Afghanistan, where fighting is escalating seven years after a U.S.-led invasion toppled the Taliban regime.



Jim Sinclair’s Commentary

Beanno works. Happy New Year. Maybe I should say good night, and stop posting?

Russia-Ukraine gas talks ‘fail’

Talks to resolve a gas supply row between Ukraine and Russia have failed, the chief executive of Russian gas giant Gazprom has said.

Alexei Miller said gas supplies to Ukraine would be cut on Thursday but that Russia would do its best to guarantee supplies to Europe.

Russian PM Vladimir Putin earlier claimed that Ukraine would block supplies to Europe if no deal was done.

Ukraine denies owing money to Gazprom, and says it has guaranteed gas transit.

Russia said they would "fully, 100%" cut Ukraine’s supply from 0700 GMT.

There was no immediate comment from Ukrainian state energy firm Naftogaz.


Jim Sinclair’s Commentary

The revenge of the blue collar backbone of nations.

Power to the people.

Vote NO to unbridled greed and white collar CRIME.

Buy ONE Gold coin, and take it home!

Investors dumping dollars, going for gold
by Max Marbut

British poet George Gordon Noel Byron included that line in “Don Juan” early in the 17th century. That same sentiment is ringing true today for investors all over the world. As currency markets become unstable and projections head for the cellar, gold — one of the oldest measurements of wealth — is heading up in all forms.

The devaluation of the U.S. dollar has had a significant impact on the demand for, and therefore the price of, gold. A common way to invest in gold is to buy solid gold coins, which are struck by the U.S. Mint (part ot the U.S. Treasury Department) in West Point, N.Y. The Mint manufactures a variety of platinum, gold and silver coins in various denominations and weights up to the one-ounce American Eagle coins.

Each coin weighs 34.1 grams, with 32 grams (or 1 Troy ounce) of pure gold and an alloy metal which allows the metal to be durable enough to manufacture the coin.

The demand for the coins reached such a point in 2008 that those who sell gold coins were notified in November by the Mint that with the exception of the American Eagle Gold One-ounce and American Eagle Silver One-ounce bullion coins, all 2008-dated bullion coins have been depleted. Introduction of some new 2009 coins has also been pushed back.

The Mint can’t currently get enough of the “blanks” which are used to “strike” the coins, said U.S. Mint spokesperson Michael White. He described the 2008 demand for precious metal coins as “unprecedented.” In fact, after years of decreasing demand for the coins, demand tripled in 2008 compared to 2007 (see chart).



Jim Sinclair’s Commentary

White collar crime is not the only cancer that GOLD fights.

Gold Nanoparticles Don’t Just Look Pretty, They Fight Cancer
Jason Mick (Blog) December 31, 2008 1:20 PM

Gold has fast become one of the most promising materials for building devices on a nanoscale level thanks to a number of favorable properties.  Among the applications of gold nanodevices is the use of gold particles to deliver drugs.  Gold nanoparticles range from small nanoclusters up to larger, more complex nanostructures.

MIT researchers used the latter to create one of the first examples of atwo-drug delivery system.

Frequently, medical problems such as AIDS or cancer are best combated by a mix of drugs; however, drugs typically have different intervals they have to be taken on.  Thus, merely injecting a mix of nanoparticles coated in or containing drugs would not be sufficient.  A more complex delivery system was needed.

The MIT researchers decided to make use of an important property of gold nanoparticles.  Gold nanoparticles, based on their size and shape melt when exposed to certain wavelengths of infrared light.  In the case of drug-carrying hollow gold nanoparticles, the melting process can release drugs at specific locations in the body.

To implement a two drug delivery, researchers used two types of large hollow nanoparticles — longer ones, which they nicknamed "nanobones", and shorter ones, which they nicknamed "nanocapsules".


Posted by & filed under General Editorial.

Dear CIGAs,

As I watch from Africa, I see the gold market set to open down $20 from what was the trading high a few moments prior to the Comex gang’s morning coffee and first computer entry. This happens between 1:30 and 2:30pm (5:30 to 6:30am in NYC).

How long are you going to remain the price property of the Comex as their “Pleasure Slaves,” getting your daily price raping before you bring in Bruce Willis in the pawn shop scene of the cult classic movie, “Pulp Fiction.” Remember, the visual theme of "Pulp Fiction" was the briefcase of unseen gold.

I have had it. Haven’t you? Where is your rage?

I do not support BUSTING anything. Any such statement is a blatant misunderstanding.

The Comex holds the rights to their game until you join me financially in the Final Challenge before the Golden Bull roars. Let the better players win!

I do support the reduction of the Comex warehouse by 50%. That is all we need to do to level the playing field.

Is there no Sheik or Scrapper out there tired of seeing the apple tree shaken, as I am? Poli-Poli and there will be no notice.

As long as you do not do your part then you are just leaning back and enjoying their having their way with you, day after day.

Will you not fight the good fight with me?


Posted by & filed under General Editorial.


You are the man. You will always be the man.

You need no confirmation of that from anybody, ever. You are the King, and I bow publicly to honor you.

You gave me a helping hand as a kid, and that will never be forgotten. You always honored Barbara, and for that I am your servant. 


Newsletter of the year? Harry Schultz. Really.
Commentary: His prescient call of the ‘financial tsunami’ is the reason why
By Peter Brimelow, MarketWatch
Last update: 11:14 p.m. EST Dec. 28, 2008

NEW YORK (MarketWatch) — My choice for investment letter of the year: The International Harry Shultz Letter.

I usually say that my selection method is highly scientific (I choose whoever I feel like). And I have to say it particularly loudly this year.

Schultz was Letter of the Year in 2005. See Dec. 29, 2005 column, which explains his nuanced gold-bug philosophy in more detail

But over the past 12 months through November, Schultz is down a heart-stopping 76.05% by Hulbert Financial Digest count, vs. negative 36.68% for the dividend-reinvested Dow Jones Wilshire 5000.

This loss has wiped out Shultz’s strong post-2000 run, when he benefited from the gold and commodities boom. Now, over the past 10 years, the HFD shows the letter achieving an annualized loss of negative 8.73%, even worse than the negative 1.16% annualized loss for the total return DJ-Wilshire 5000.

And it’s an unpleasant arithmetical fact that even future triple-digit gains (which aren’t impossible) will not dig Schultz out of this hole.

(But, if you’re a new investor starting at the bottom, who cares?)

The reason I pick Schultz: the extraordinary prescience he showed in predicting what he called a "financial tsunami" well over a year ago. See Oct. 19 column

Well? He was right, wasn’t he?


Posted by & filed under General Editorial.

Dear Jim,

I plan on owning and operating a for profit chain of re-education camps. State funded and too big to fail, of course. And at graduation rather than robes, everyone wears a tarp.

CIGA Rusty Bayonet

Rusty Bayonet’s Misean Institute Local 401:

Core curriculum : Term One
1. Household Balance Sheets : An Introduction to Penury
2. How Wall St. Ate Your Retirement
3. How to Spot Financial Advisory Fraud : The Mouth Moves
4. Mid-term Debate : Keynes, Friedman And how to Hose the Future
5. Rethinking Children/Grandchildren : Basic Costings
6. Survival Mandarin, Part 1
7. Zen and the Art of Hummer Maintenance
8. Fieldtrip to the Fed : BYO Small Arms
9. Why Dark Pool Trading is Not Your Friend
10. Countdown to a COMEX Bust : Probabilistic Modeling and You
11. U6 and the New Leisure Society
12. End of Term Asssignment : Where did the TARP Funds Go?

Term 2 : Applied Course TBA
Semester II : Applied Curriculum – Building on the Lessons of Semester I
1. Do You Look Good In Orange? A Wall Streeter’s Guide to Gitmo
2. Living With Gruel : An Update
3. Introduction to the New Nutrition : Squirrels, Insects And Their Many Uses
4. Super UNsize Me : Homilies on CDSs
5. Tort Refresher : The Value of the Paper It’s Written On
6. Mid-term Roundtable : Squashing the Long Bond Yield, a Discussion with Guest Experts Eldo, Macray, and Quixande.
7. Applied Baltic Dry Studies : Term Paper The Long Trail from the ASX to US Manufacturing
8. Poverty in Context : Comparing North Carolina and Sierra Leone After the Rebellions
9. And Not a Drop to Pump : Oil Supply Distortions and the Case of Georgia
10. We are All Iceland Now : Historical Perspectives on Iceland.
11. The Fundamentals of the Bailout Are Strong : TARPs, TALFs and Why Five-letter Acronyms are an Excellent Short Position
12. Final Paper : It Could Never Happen Here. Discuss.

Term 3 : Working Professionals’ Core Course, TBA.
Semester III: Applying All We Have Learned
1. Do You Look Good In Orange II?  Care and Maintenance in Challenging Environments
2. Guest VC Commentator : Neutron Bernie from the US Virgin Islands on Booking and Busting $50b, "You have to start from zero to get back to zero".
3. Headline Writers Are Morons : Bloomberg Edition. Discuss.
4. The IMF Is Back In Business : Streamlined Conditionality and the New Endocolonialism, with John Perkins
5. The Anglos do the Slavs, Again : The Eastern European Bust of 2008
6. Mid-term Debate : The Austrian School and the Psychopathology Of Market Fundamentalism, Deflation Case Studies
7. To Build a Better Oligarchy, an American View
8. State Failure: When the State Is Your State, A Presentation from the Center for Budget and Policy Priorities, with Q&A and vodka cash-bar
9. Introductory Air Movements and Convoy Behavior : Looking Out For Ourselves And Applied Tinfoil Techniques
10. Ni shuo shenme? Wo ting bu dong!?? Further Guidance on Cross-cultural Negotiation Tactics.
11. Spontaneously Arising Leadership : So the Syndicalists Had a Point?
12. Term paper : How It Will Never Happen Again. Open Discussion.

The Curriculum Board makes no undertakings that course Participants will either learn or activate the learning imparted. Past returns are no guarantee of future results.

Posted by & filed under General Editorial.

Dear Friends,

Everyone is getting fancy seeing gold’s strength as a product of the Israeli/Hamas situation.

Watch the euro/dollar relationship as it is the underlying cause of the new gold price up-trend.

We are also moving deep into a more serious geopolitical problem in Pakistan than even the present focus in the Middle East.

Gold is a process. The dollar is the real why. Soon a geopolitical situation will not simply go away.

Gold is insurance. Gold is not a trade. Trade Google if you want. Trading gold is for the professionals. Even for the professionals, trading is no way to reliable fiscal insurance at this time.

How will the thieves protect the trillions they have stolen that are now depreciating as the phony dollar rally caves in? Not in long Treasuries, that is for sure.

The bail out of long treasuries by the thieves, sure to come, will be a sight to see.

Remember that Hyper-dollar-inflation is a currency event, not an economic event.

Keep focused on Jan 2011 to June 2012 and do not get diverted by the noise.

Think Alf Fields’ gold prices, Not Goldfields’ gold prices.

Once again the producers called the bottom. The Anglo and Impala retrenchment releases are infallible indicators as they are ALWAYS wrong when they do that, ALWAYS!

The producers have historically proven their abilities as market mavens by expanding wildly at tops, and closing down production while selling off gems at the price bottom. Thanks guys!

I bought Anglo’s exploration properties in TZ, didn’t I?

Respectfully yours,

Posted by & filed under General Editorial.

Dear Friends,

Here is my New Years gift to you, my extended family.

There is no way that the CONSEQUENCES of the largest creation of paper money since it was invented can be avoided or even modified. Odds now favor Alf Field’s price objective.

January 14th 2011 to June 21st, 2012:

The best part of this gift is not the one you already know, which is January 14th 2011, but rather the date that a new currency form will replace the form of the US dollar as you know it today which is the third week of June 2012.

Don’t laugh! Write this down and do not forget about it!

Happy (sort of) New Year,

Posted by & filed under General Editorial.

Dear CIGAs,

We would like to thank you all for another great year at, and quite the year at that! We look forward to you all being by our side on this unprecedented economic ride and wish you and all yours the best over the holiday season!

Jim, Trader Dan, Editor Dan, Monty Guild and David